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ABC Islamic Bank full year net profit surges by 855%
2008-02-17

Manama, Bahrain: Bahrain-based ABC Islamic Bank today announced a net profit for the year to 31 December 2007 of US$50.9 million, a substantial increase over the 2006 figure of US$5.3 million.
Total operating income showed a five-fold year-on-year increase with all asset categories showing good advances. What was already an exceptional performance was improved further by significant profits in the bank’s sukuk portfolio which were realised in the fourth quarter and well-timed capital gains taken earlier in 2007 resulting from a strategic investment. Underlying ‘core’ profit margin and fee income also showed healthy increases over 2006 levels by 150% and 35% respectively as the regional credit markets again proved resilient. The bank’s portfolio remains well positioned and diversified across the major GCC economies.
After signing the year-end accounts, ABC Islamic Bank Chairman and ABC Group Deputy Chief Executive & Chief Banking Officer, Mr. Abdulmagid Breish, commented “Having made wholesale changes to the ABC Group’s approach and attitude to Islamic Financial Services in 2004 and with the subsequent tripling of ABC Islamic Bank’s capital and the introduction of professional human resources, I am delighted with the progress that is being made. 2007 was an excellent year for ABC Islamic Bank but there is, as always, more to do.”
Reflecting on the year as a whole, Naveed Khan, Managing Director of ABC Islamic Bank said, “The surge in our operating results over the past three years clearly shows the achievements arising from our renewed focus on our target market customer base in the GCC and Arab world region. ABC Islamic Bank is now offering a full range of Shari’a-compliant products and services, from basic working capital needs to complex hedging structures and arguably the best liquidity management platform that any Islamic bank currently offers.”
The bank’s total assets reached US$1,365 million at year end, up US$542 million or 66 per cent over 2006, with notable increases in available for sale investments – primarily in sukuk, murabaha and ijara assets. The bank’s financing portfolio was approaching $1 billion by year end as customer demand increased and the need for innovatively structured and professionally executed Shari’a-compliant financings grew.

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.

 

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