Manama, Bahrain: Arab Banking Corporation today announced that its consolidated Group net profit for the first quarter of 2013 was US$56 million, 4% higher than the profit of US$54 million reported in the first quarter of last year.
Operating revenues rose to US$231 million, 8% growth over US$214 million in the first quarter of last year. Whilst trade finance and treasury revenues surged, interest income was negatively impacted by lower interest rates and compression in credit spreads. Operating expenses of US$113 million increased by US$14 million in part due to one off costs resulting in cost/income ratio of 49%. Net impairment provisions were US$28 million against US$15 million last year.
Shareholders’ equity at 31 March 2013 stood at US$3,846 million compared to
US$3,796 million at 2012 year-end. ABC group’s capital adequacy ratio at 23.2% was substantially above the regulatory minimum (12%) and comprised of predominantly Tier 1, which totalled 19.1%. Liquid assets to deposits ratio stood at 58% compared to 60% at 2012 year-end.
ABC Group’s total assets stood at US$25.1 billion at the end of the first quarter compared to US$24.5 billion at 2012 year-end.
ABC's Chairman, Mr. Saddek El Kaber, commented that “these results demonstrate yet again the strength of our core businesses. ABC is reporting another successful quarter, with positive contribution from all its business units, in spite of the continuing challenges in our markets. We are confident that our drive to improve efficiencies and accelerate our on-going transformation in MENA will enhance the momentum in the coming future.”