Naveed Khan, Managing Director of ABC Islamic Bank

Manama, Bahrain: ABC Islamic Bank today announced that its net profit for the year ending 2012 was US$8.3 million, compared to US$8.1 million last year.

Total operating income amounted to US$16 million, 6% higher than last year of US$15.1 million. Operating expenses increased by US$0.8 million to US$6.9 million, resulting in cost to income ratio of 43.3%, compared to 40.8% in last year, mainly due to higher staff expenses related to compensation scheme. Impairment provision of US$0.5 million for regional exposure taken during the year was at the same level as of last year. Net profit for the fourth quarter was the same as of last year of US$1.4 million.

Shareholders’ equity at 31 December 2012 stood at US$236 million, compared to US$227.7 million at 2011 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 26.2%, predominantly Tier 1, which totalled 25.3%.

ABC Islamic Bank’s total assets stood at US$1.067 billion, compared to US$1.035 billion at 2011 year-end.

Commenting on the results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank said, ”The financial results for 2012 are encouraging. Although net profit is marginally higher most of the growth this year has come from core earnings with a good mix of fee income and spreads. We remain optimistic about future opportunities arising from Islamic Banking finding great favour among markets emerging from the Arab Spring of 2011.”