Manama, Bahrain: Arab Banking Corporation (ABC) today announced that its consolidated Group net profit for the first half of 2013 was US$112 million, a 7% increase when compared to US$105 million for the same period last year. Net profit for the second quarter was US$56 million, 10% higher than US$51 million reported during the same period in the previous year.
Total operating income for the second quarter amounted to US$210 million, 9% higher than the US$193 million achieved during the same period last year. Despite adverse exchange rate changes in emerging markets and the persistent compression in credit spreads, total operating income grew on the back of increased fee income from lending, trade finance and treasury activities. The total operating expenses for the second quarter were US$115 million, an increase of 12% over US$103 million in the same period last year in part owing to one-off restructuring costs. Net impairment provisions for the second quarter of 2013 were US$10 million, marginally down from US$13 million in the same period of the previous year.
Deposits continued to grow during the year from US$17.2 billion at 2012 year-end to US$ 17.9 billion, resulting in a further improved liquidity position.
Shareholders’ equity at 30 June 2013 stood at US$3,819 million, compared to US$3,846 million at the end of the first quarter 2013 and US$3,778 million at 2012 year-end. The slight decrease during the second quarter was mainly due to exchange translation on foreign subsidiaries following the rise in US dollar. ABC’s capital base remains very strong, with a capital adequacy ratio of 22.7%, predominantly Tier 1, which totaled 18.7%.
ABC Group’s total assets stood at US$25.3 billion at the end of the second quarter, 3% higher when compared to US$24.5 billion at 2012 year-end.
ABC's Chairman, Mr. Saddek El Kaber, commented: “Despite adverse conditions in the MENA region, the ABC Group has continued to achieve its targets on a consistent basis. I am pleased with the serious efforts to enhance efficiencies within the Group on all fronts, laying a solid foundation for accelerated growth and transformation.”
ABC is a leading player in the region’s banking industry and provides innovative wholesale financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in the region.