ABC Islamic Bank announces 2012 year-end profit of $8.3m

Total operating income amounted to $16m, 6% higher than last year of $15.1m. Operating expenses increased by $0.8m to $6.9mi, 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 $0.5m 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 $1.4m.

Shareholders' equity at 31 December 2012 stood at $236m, compared to $227.7m 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 $1.067bn, compared to $1.035bn 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."