ABCIB net profit up 49% to $6m in H1

ABC Islamic Bank announced that its net profit for the first half of 2013 was $6 million, 49% higher than the US$4 million recorded in the first half year of 2012. Total operating income grew to US$8.3 million, compared to US$7.4 million for the first half of last year. Operating expenses decreased to US$2.2 million, compared to US$2.7 million for the same period of last year.

Net profit for the second quarter was US$2.8 million, compared to US$3.2 million in the first quarter of 2013 but compared to US$2.5 million for the second quarter 2012 and represents a 13% increase over the same period last year.

Shareholders’ equity at 30th June 2013 stood at US$242.2 million, compared to US$236 million at 2012 year-end. The bank’s capital base remains very strong, with a capital adequacy ratio of 26.3%, predominantly Tier 1, which totals 25.6%.

ABC Islamic Bank’s total assets stood at US$1.173 billion at the end of the half year, compared to US$1.067 billion at 2012 year-end.

“The financial results for the first half of the year are comforting. The growth in operating income has come about from a gradual build-up in our asset portfolio, accompanied by a healthy increase in fee and commission income. Efficiency improvements have also resulted in lowering operating expenses. We look forward to continue this positive trend for the remainder of the year,” Naveed Khan, Managing Director of ABC Islamic Bank, said.