Bank ABC Islamic today announced that its net profit for the year ending on 31 December 2017 was $25.6 million, 12 per cent higher than last year’s net profit of $22.9 million.
Business performance in the fourth quarter was a net profit before provision of $6.6 million ($4.6 million after provision) compared to $6.1 million reported for the same period last year.
Total operating income rose to $35.9 million, with an increase of 17.6 per cent over the previous year of $30.5 Million. Operating expenses recorded a measured increase of $0.7 million to $8.0 million, resulting in an improvement in cost to income ratio to 22.2 per cent compared to 23.8 per cent in 2016.
Cost of credit remained under control at 0.13 per cent, allowing the bank to be extra prudent during the year by taking $2 million provision related to litigation on a credit matter.
Shareholders’ equity at 31 December 2017 stood at $332.9 million, compared to $306.7 million at the 2016 year-end. The Bank’s capital base remains extremely strong with a capital adequacy ratio of 31.2 per cent, well above the regulatory minimum of 12.5 per cent.
ABC Islamic Bank’s total assets stood at $1.559 billion, compared to $1.634 billion at the 2016 year-end.
“I am very pleased with the Bank’s financial performance that reflects healthy growth on a year on year basis. During the year, our coverage and product teams were successful in winning key mandates and diligently serviced clients in our core markets resulting in healthy ancillary business and associated revenues. The focus remained on origination of creditworthy corporate names, trade finance, and treasury and capital market products. Our first line of defence and risk management remained proactive in portfolio management keeping credit costs in check. We enter 2018 cautiously optimistic and well prepared to optimise on the investments that were committed in recent years,” said Hammad Hassan, Managing Director of Bank ABC Islamic.