MANAMA: Bank ABC Islamic announced its net profit for 2017 at $25.6 million was 12 per cent higher than the previous year’s net profit of $22.9m.
Business performance in the fourth quarter last year was a net profit before provision of $6.6m ($4.6m after provision) compared with $6.1m reported for the same period of the previous year.
Total operating income rose 17.6pc to $35.9m from $30.5m.
Operating expenses recorded a measured increase of $700,000 to $8m, resulting in an improvement in cost to income ratio of 22.2pc compared with 23.8pc in 2016.
Cost of credit remained under control at 0.13pc, allowing the bank to be extra prudent during the year by taking $2m provision related to litigation on a credit matter.
Shareholders’ equity at end-December 2017 stood at $332.9m, compared with $306.7m at the 2016 year-end.
The bank’s capital base remains extremely strong with a capital adequacy ratio of 31.2pc, well above the regulatory minimum of 12.5pc.
ABC Islamic Bank’s total assets stood at $1.559 billion, compared with $1.634bn at the 2016 year-end.
Commenting on the results, Bank ABC Islamic managing director Hammad Hassan said, “The bank’s financial performance 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.”
He added that the bank’s 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 Mr Hassan.