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Bahrain : MANAMA: ABC reported a 22% growth in net profit to $137 million for H1, 2014

August 14, 2014

The Bahraini business Arab Banking Corporation (ABC) has made an announcement on its report card for the first six months of 2014.

It has revealed that its consolidated net profit for the first half of this year has grown by 22% to $137 million. The company reported $112m in consolidated net profit in H1, 2013.

During the Q2 of 2014, net profit grew 18% to $66m compared with $56m in Q2, 2013. The overall operating income of ABC during Q2, 2014 increased by 15% to $242m as against the same period last year s figure of $210m. The Bahrain-based company has attributed this growth to expansion in business volumes throughout its operational regions.

There was a 2% decline in operating expenses during the reviewed period to $113m from the year ago period which incorporated one-off costs for restructuring.

During Q2, 2014, cost to income ratio grew to 46.7% from 54.8% earlier, chiefly due to improved revenue.

The net impairment provisions during the reviewed period stood higher at $19m in comparison with $10m in the matching period in 2013.

The net charge, on the other hand, for the first half reached $27m, down from the same period last year s figure of $38m.

The overall assets of ABC Group had increased by 6% to $28.1 billion as of end of this June. This represented increase in loan amounts and liquid assets.

There was a drop in the ratio of non-performing loans to gross loans to 2.5% from 3% as of end of 2013. The Group has been successful to retain a diversified and mostly short-term asset book, including below 1 year term for 56% of the assets.

During H1, 2014, deposits rose 8% to $19.7bn from $18.3bn at the end of 2013.

The liquid assets to deposits ratio stood at 59% as against 63% as of end of 2013.

The ratio of liquid assets dropped to 42% from 44% at the end of 2013.

As of end of June, shareholders' equity reached $3,980m, as against $3,897m at the end of Q1, 2014 and $3,940m at the end of 2013.

The firm reported a 20.7% capital adequacy ratio, mostly Tier 1, which reached 17.3%. The Group s total capital adequacy ratio adjusted to Basel III model as per the Central Bank of Bahrain's draft rules stood at 20.3%, with its Tier 1 ratio reaching 17.4%.

The Chairman of ABC - Saddek El Kaber stated, 'The half-year results show year-on-year profit growth for the sixth consecutive year.'

He said, 'During the first half of the year, we have also strengthened our management team with the addition of a new group chief banking officer, group chief financial officer and group head of compliance, all with significant international banking experience.

'I am confident that with our reinforced top management team in place, and with substantial capital resources and comfortable liquidity, ABC will be able to continue on its growth path with robust risk management to deliver sustained returns for our shareholders."

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Source: TendersInfo (India)

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