Bahrain-based Arab Banking Corporation (ABC) reported consolidated group net profit, for the first quarter of 2012, of $54 million, 13% higher than the first quarter of last year.
Operating revenues rose to $214 million, 9% growth over the first quarter of last year. Both interest and non-interest income contributed to the $17 million increase in operating revenues. Operating expenses of $99 million were at the same level as last year resulting in cost/income ratio improving to 46% from 50% last year. Net impairment provisions were $15 million against $7 million last year.
Shareholders’ equity at 31 March 2012 stood at $3.67 billion compared to $3.59 billion at 2011 year-end. ABC group’s capital adequacy ratio at 23.3% was substantially above the regulatory minimum (12%) and comprised of predominantly Tier 1, which totalled 19.1%. Liquid assets to deposits ratio stood at 63% compared to 64% at 2011 year-end.
ABC Group’s total assets stood at $25.9 billion at the end of the first quarter compared to $25 billion at 2011 year-end.
“This is the fourth year of sustained profit growth at ABC. There are still financial and economic headwinds in MENA and Eurozone countries and we continue to remain vigilant with strict risk and cost discipline in force. The strong start to the year following the excellent results of last year reflects the good performance by all ABC units in challenging environments,” Hassan Juma, President & Chief Executive of ABC, said.
“I am pleased at the first quarter result which sets the platform for the rest of the year. Given ABC’s track record in overcoming tough conditions, its geographic reach and strong financial position backed by steadfast shareholder support I have every confidence in ABC’s sustained growth going forward,” ABC’s Chairman, Saddek El Kabe, said.