Bank ABC
ABC
ABC
Arab Banking Corporation (ABC) today announced that its consolidated Group net profit for the first nine months of 2014 was $197 million, an increase of 11% over the $178 million for the same period last year.
Net profit for the third quarter was $60 million, 9% lower than the $66 million reported for the third quarter last year.
Total operating income for the third quarter amounted to $208 million, the same level as in the previous year whilst operating expenses increased by 9% to $108 million, compared to US$99 million last year, mainly due to compensation and new hires. Cost to income ratio for the nine months saw an improvement to 47.9% from 50.4% due to revenue growth during 2014.
Net impairment provisions for the third quarter of $13 million was higher than $6 million in the same period last year; however, the cumulative net charge for the nine months at $40 million was lower than $44 million for the same period last year. The ratio of NPLs (non-performing loans) to gross loans improved to 2.5% from 3.0% at 2013 year-end. ABC Group’s total assets registered a growth of 9% during 2014 to stand at $28.9 billion as of 30 September 2014, reflecting growth in loan volumes and liquid assets. The Group has maintained a diverse and primarily short term asset book with 60% of assets having a tenor of less than 1 year.
Deposits grew by 7% during the year to $19.6 billion from $18.3 billion at 2013 year-end. New borrowings of $0.9 billion during the quarter resulted in term borrowings to reach $3.7 billion ($2.8 billion at 2013 year-end). The Group’s liquidity position continues to be strong with the liquid assets to deposits ratio at 65%(63% at 2013 year-end). The liquid assets to total assets ratio stood at 44%, which is the same as at 2013 year-end.
Shareholders’ equity stood at $3,976 million on 30 September 2014, compared to $3,940 million at 2013 year-end. ABC’s capital base remains very strong, with a capital adequacy ratio of 21.7%, predominantly Tier 1, which totalled 17.9%. Adjusted to a Basel III basis, in line with the Central Bank of Bahrain rules, the Group’s total capital adequacy ratio is 21.2%, and its Tier 1 ratio is 17.9%.
Net profit for the third quarter was $60 million, 9% lower than the $66 million reported for the third quarter last year.
Total operating income for the third quarter amounted to $208 million, the same level as in the previous year whilst operating expenses increased by 9% to $108 million, compared to US$99 million last year, mainly due to compensation and new hires. Cost to income ratio for the nine months saw an improvement to 47.9% from 50.4% due to revenue growth during 2014.
Net impairment provisions for the third quarter of $13 million was higher than $6 million in the same period last year; however, the cumulative net charge for the nine months at $40 million was lower than $44 million for the same period last year. The ratio of NPLs (non-performing loans) to gross loans improved to 2.5% from 3.0% at 2013 year-end. ABC Group’s total assets registered a growth of 9% during 2014 to stand at $28.9 billion as of 30 September 2014, reflecting growth in loan volumes and liquid assets. The Group has maintained a diverse and primarily short term asset book with 60% of assets having a tenor of less than 1 year.
Deposits grew by 7% during the year to $19.6 billion from $18.3 billion at 2013 year-end. New borrowings of $0.9 billion during the quarter resulted in term borrowings to reach $3.7 billion ($2.8 billion at 2013 year-end). The Group’s liquidity position continues to be strong with the liquid assets to deposits ratio at 65%(63% at 2013 year-end). The liquid assets to total assets ratio stood at 44%, which is the same as at 2013 year-end.
Shareholders’ equity stood at $3,976 million on 30 September 2014, compared to $3,940 million at 2013 year-end. ABC’s capital base remains very strong, with a capital adequacy ratio of 21.7%, predominantly Tier 1, which totalled 17.9%. Adjusted to a Basel III basis, in line with the Central Bank of Bahrain rules, the Group’s total capital adequacy ratio is 21.2%, and its Tier 1 ratio is 17.9%.
Source:
Mubasher
