ABC Islamic Bank reports a net profit of US$23 million

ABC Islamic Bank reports a net profit of US$23 million

Manama, Bahrain: ABC Islamic Bank today announced the bank’s net profit for the year to September 2008 of US$23 million. This was an increase of 60% over the net profit for the comparable period last year and a record nine months profit in the history of the bank.

Total income reached US$27.30 million (2007: US$17.93 million), while fee income of US$4.88 million increased by 85% over the same period last year. Operating expenses of US$4.29 million increased only by 15% over the same period last year, attributable to an increase in the cost of living. The Bank’s cost-to-income ratio was 15.7%, lower than 20.8% for the same period last year.

ABC Islamic Bank’s total assets amounted to US$1,440 million (2007 year end: US$1,365 million) with an increase in Available-for-sale investments which stood at US$375 million (2007: US$329 million) mainly in Sukuks. Murabaha receivables and Ijara assets increased to US$1,048 million (2007: US$ 995 million) as the lending portfolio continued to grow to meet customer demand.

Commenting on the results, Mr. Naveed Khan, Managing Director, said, “Despite the turmoil in global markets we have managed to achieve record results for ABC Islamic Bank. These results are a testament to solid relationships developed with core customers and hard work put in by staff, coupled with the strong support we get from the parent group. We are hopeful of consolidating and building on these results for the full year 2008.”

About ABC Islamic Bank

Arab Banking Corporation (ABC) launched its Islamic Banking Division through ABC Investment & Services Co. (E.C.) a wholly-owned subsidiary, based in Bahrain in 1987. The objective was to establish a leading Islamic banking unit, which conformed completely to Shari’a principles.

In March 1998 ABC Investment & Services Co. (E.C.) was converted into a fully fledged Islamic entity and was consequently renamed ABC Islamic Bank (E.C.), with the express purpose of reassuring customers and counterparties of the continued purity and integrity of its Islamic products and services. ABC Islamic Bank is supported by the ABC Group’s extensive global network, which includes ABC IB Islamic Asset Management in London in addition to ABC branch offices, subsidiaries and affiliates across the globe.

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