Bank ABC Islamic announces 45 per cent increase in Q1 profit to $6.4 million
Bank ABC Islamic, a subsidiary of the Bank ABC Group, announced that its net profit for the first quarter of year 2017 was $6.4 million, 45 per cent higher than the net profit for the comparable period last year of $4.4 million, and also a 4 per cent increase over fourth quarter of 2016.
Total operating income rose to $8.6 million, 38 per cent growth over $6.2 million recorded in the first quarter of last year, despite a slight contraction in the total assets which stood at $1.522 billion at the end of the first quarter compared to $1.634 billion at 2016 year-end. Operating expenses were higher at $2.1 million, compared with $1.7 million for the same period last year.
Shareholders’ equity at 31 March 2017 stood at $313 million, compared to $307 million at 2016 year-end, representing a very strong capital adequacy ratio of 31.2 per cent.
Commenting on the results, Hammad Hassan, Managing Director of Bank ABC Islamic said, “This is a good start to the year. The initiatives embarked upon last year to leverage on the Group’s Debt Capital Markets capabilities continued to bear fruit. The Bank’s focus will continue on proactive management of the portfolio in order to keep credit costs in cheqck, origination of quality credits and cross sell of capital light products in collaboration with the Group. Despite the tough economic backdrop, the Bank is well positioned to meet the challenges ahead of us.”