Arab Banking Corporation 'ABC' announces nine-month profit of $158m

Total operating income for the third quarter amounted to $200m, same as last year, whilst operating expenses of $98m was marginally higher than US$97 million in the previous year.

Cost/income ratio was maintained at 49%.

Operating profit before impairment provisions reached $102m (2011: $103m).

Net impairment provision charge of $13m was $7m lower than last year due to recoveries. After tax charge and share of minority interests, net profit for the quarter amounted to $53m, 29% higher than last year.

Shareholders' equity at 30 September 2012 stood at $3,742m, compared to $3,672m at the end of the second quarter. ABC's capital base remains very strong with a capital adequacy ratio of 23.4%, predominantly Tier 1, which totalled 18.6%. ABC's liquidity remains comfortable with the liquid assets to deposits ratio at 58%, compared with 59% at the end of the previous quarter.

Mr. Hassan Juma, President & Chief Executive of ABC, said, "The results demonstrate the Group's ability to deliver sustainable core earnings through its diversified product offerings across our geographies in spite of a continuing fragile economic climate in certain of our markets. Growth is well complemented by our robust risk management strategy and tight cost containment measures."

Mr. Saddek El Kaber, Chairman of ABC, stated, "I am pleased with ABC's results. With strong capital, liquidity and funding firmly established to support its growth, ABC is building an excellent platform for its transformational journey to become a leading Universal bank."