ABC announces First Quarter 2015 Profit of US$52 Millio.
However, more positively, core business volumes continued to grow during the quarter, in spite of challenging market conditions arising from sustained lower oil prices as well as the economic and political climate in a number of key markets.
The overall combination of these factors resulted in total operating income of US$168 million compared to US$226 million reported in the first quarter of last year. Operating expenses at US$104 million were marginally higher (US$103 million Q1 2014), with some cost investment on strategic initiatives to support business growth being offset by weaker domestic currencies. Net impairment provisions of US$9 million, were slightly above the previous year's US$8 million indicating sustained asset quality as well as robust management. Tax for the quarter was a credit of US$12 million against a charge of US$29 million in 2014, benefiting from the tax treatment of currency
movements in subsidiaries.
ABC Group's total assets stood at US$28.6 billion at the end of the first quarter compared to US$29.4 billion at 2014 year-end, also affected by translation to the stronger US dollar, although asset volumes grew in domestic currency terms. The ratio of NPLs (non-performing loans) to gross loans at 2.7% remains healthy (2.4% at year-end 2014).
Deposits decreased by US$0.7 billion during the quarter to reach US$18.9 billion again impacted by currency translation. Liquidity continues to be at comfortable levels with liquid assets to deposits ratio increasing to 70% compared to 65% at year-end 2014.
Shareholders' equity at 31 March 2015 stood at US$3,790 million after the distribution of 5% dividend to the shareholders and after foreign exchange movements on investments in subsidiaries.
ABC Group's consolidated total capital adequacy ratio (CAR) continued to remain strong at 20.9%, comprising predominantly Tier 1 at 17.5%. The total CAR, calculated in accordance with the Central Bank of Bahrain's newly introduced Basel 3 equivalent rules, was well above the regulatory ABC's Chairman, Mr. Saddek ElKaber, commented that "The challenges posed during the quarter, in particular by the currency markets in some of ABC's key countries have clearly affected the results. However, I am confident that ABC Group will successfully face such challenges with continued resilience, as has been repeatedly demonstrated in the past."
ABC is a leading player in the region's banking industry and provides innovative wholesale financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in Jordan, Egypt, Tunisia and Algeria.
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BNA 1237 GMT 2015/04/30
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