ABC Islamic Bank has announced that its net profit for the year ending 2013 was $12.2 million, 48 per cent higher than the previous year of $8.3 million net profit. Net profit for the fourth quarter of 2013 was $3 million, 112 per cent higher than the same period of 2012.
Total operating income grew 12.8 per cent to $18.1 million compared to $16 million in the previous year. Operating expenses decreased by more than 20 per cent to $5.5 million. As a result the cost to income ratio improved to 30.6 per cent compared to 43.3 per cent in 2012. No impairment provisions were required during the year, demonstrating continuing improvement in credit quality.
Shareholders' equity at 31 December 2013 stood at $248.4 million, compared to $236 million at 2012 year-end. The Bank's capital base remains very strong with a capital adequacy ratio of 27.6 per cent, predominantly Tier 1, which totalled 26.2 per cent.
ABC Islamic Bank's total assets stood at $1.002 billion, compared to $1.067 billion at 2012 year-end.
Commenting on these financial results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank said, "We're very pleased to present results for the year which are encouraging based on new customer acquisition and higher growth in our core target markets. The growth in operating income has come about from a gradual build-up in the asset portfolio, despite some lumpy repayments during the year, but accompanied by a healthy increase in fee and commission income. The financial results are a reflection of the transformation steps undertaken in conjunction with the Group over the past years which are now starting to take firm root."