ABC Islamic Bank full year net profit surges by 855%

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 foc on our target market ctomer 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 $1,365m at year end, up $542m or 66$ over 2006, with notable increases in available for sale investments - primarily in sukuk, murabaha and ijara assets. The bank's financing portfolio was approaching $1bn by year end as ctomer demand increased and the need for innovatively structured and professionally executed Shari'a-compliant financings grew.