Manama, Bahrain: ABC Islamic Bank today announced that its net profit for the first half of 2014 was US$7.5 million, 25% higher than the profit of US$6.0 million reported in the first half of 2013. Total operating income rose to US$10.7 million, compared to US$8.3 million for the first half of last year. Operating expenses increased to US$3.1 million compared to US$2.2 million for the same period of last year.
Net profit for the second quarter was US$4.0 million 43% higher than the same period of previous year and also represents a 14% increase over the first quarter of 2014. Operating expenses were US$1.5 million compared to US$1.3 million in second quarter 2013.
Shareholders’ equity at 30th June 2014 stood at US$256 million, compared to US$248 million at 2013 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 23.93%, predominantly Tier 1, which totalled 23.2%.
ABC Islamic Bank’s total assets stood at US$1.277 billion at the end of the half year compared to US$1.002 billion at 2013 year-end.
Commenting on the results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank said, “Results for the first half of the year are encouraging. Operating income grew by a healthy 23% accompanied by an even healthier 53% increase in Fee and Commission income leading to a combined increase of 29% in total operating income in 2014 versus the same period last year. But for a large one-off carry forward credit to expenses in 2013, normalized expense growth in 2014 was only 11%. However because of this one-off adjustment net profit after expenses showed only a 25% increase in 2014. Marketing efforts put in at the start of the year started showing results towards mid-year as the balance sheet grew by 27% at June end compared to Year end 2013. We are hopeful that the rest of the year will see further consolidation on positive momentum built up during the first half of 2014.”