ABC Islamic Bank registers nine month profit of $6.7m

Total income for the third quarter was $3.2m, compared to $4.2m generated in the second quarter. Operating expenses were kept at the same level of last quarter of $1.5m.

Shareholders' equity at 30 September 2011 stood at $226.4m, compared to $219.8m at 2010 year-end. The bank's capital base remains very strong with a capital adequacy ratio of 26%, predominantly Tier 1, which totaled 25.2%.

ABC Islamic Bank's total assets declined to $1.145bn at 30 September 2011 from $1.241bn at year-end 2010.

Commenting on the results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank, said," We expect the balance sheet will continue to de-lever until the end of the year before asset growth starts to pick up again. Profitability is expected to remain buoyant due to a combination of higher spreads as European Banks focus on achieving capital requirements and a general stabilization in the provisions regime. We are beginning to see a gradual pick-up in economic activity within the region and also in corporate loan demand. ABC Islamic Bank has a unique niche & natural synergy within the Group's product family which we will continue to leverage within the Group's Universal Banking subsidiaries going forward."