Manama, Bahrain: ABC Islamic Bank today announced the bank’s net profit for the first half of 2008 of US$15.7 million. This was an increase of 72.8% over the net profit for the comparable period last year and a record half year profit in the history of the bank.
Total income reached US$18.63 million (2007: US$11.48 million), while fee income of US$2.88 million increased by 89% over the same period last year. Operating expenses of US$2.97 million increased only by 23% over the same period last year, attributable to additional staff hired to develop the Bank’s growing business lines and cost of living increases. The Bank’s cost-to-income ratio improved to 16% over the period (2007: 21%).
ABC Islamic Bank’s total assets amounted to US$1,615 million (2007 year end: US$1,365 million) with an increase in Available for sale investments which stood at US$402 million (2007: US$329 million) mainly in Sukuks. Murabaha receivables and Ijara assets increased to US$1,201 million (2007: US$ 995 million) as the lending portfolio continued to grow to meet customer demand.
Commenting on the results, Mr. Naveed Khan, Managing Director, said, “Despite a relatively quiet start to the year, because of the global credit crunch, the results are a testament to solid relationships developed with core customers and hard work put in by staff, coupled with the strong support we get from the parent group. We are hopeful of consolidating and building on these results for the full year 2008.”
About ABC Islamic Bank
Arab Banking Corporation (ABC) launched its Islamic Banking Division through ABC Investment & Services Co. (E.C.) a wholly-owned subsidiary, based in Bahrain in 1987. The objective was to establish a leading Islamic banking unit, which conformed completely to Shari’a principles.
In March 1998 ABC Investment & Services Co. (E.C.) was converted into a fully fledged Islamic entity and was consequently renamed ABC Islamic Bank (E.C.), with the express purpose of reassuring customers and counterparties of the continued purity and integrity of its Islamic products and services. ABC Islamic Bank is supported by the ABC Group’s extensive global network, which includes ABC IB Islamic Asset Management in London in addition to ABC branch offices, subsidiaries and affiliates across the globe.