Alubaf Arab International Bank posted a Net profit of US$ 25.1 million for financial year ended 31 December 2015, as against US$ 40.7 million for previous year, signifying a decline of 38%.

Net profit recorded for fourth quarter ended 31 December 2015 was US$ 2.3 million as against US$ 4.8 million achieved in last year same period, a decrease of 52% on fourth quarter 2015, was mainly due to additional specific and general provisioning considered in 2015.

Wednesday, 24th February 2016

Net profit recorded for fourth quarter ended 31 December 2015 was US$ 2.3 million as against US$ 4.8 million achieved in last year same period, a decrease of 52% on fourth quarter 2015, was mainly due to additional specific and general provisioning considered in 2015.

Interest income increased by 4% over last year figures, from investments and loans portfolio, however, the net interest income increased by 1% compared to last year.

Non- interest income relating to fee and commission decreased by 17% compared to last year. However, significant gains were realized on foreign exchange and resulted an increase of 183% compared to last year 2014.

Total operating expenses reduced by 6% , compared to last year. Cost to income ratio increased to 34% from 25% last year, mainly due to decline in net operating income after provision for credit losses.

Total assets grew by 20% and Return on average equity dropped to 8% for the year ended 31 December 2015, as compared to last year 2014. Capital adequacy ratio remained strong at 44% and liquidity ratio (ratio of liquid assets to total assets) improved to 64% compared to last year 46%. Though, non-performing loans to gross loans increased to 19% as at 31 December 2015, from 1.5% in the previous year, substantial specific provisioning has been taken to cover 38% of the non- performing loans.

Alubaf, CEO, Mr. Hasan Abulhasan expressed that significant new measures are being taken to align with the challenges faced by the Bank and expects a gradual growth for the year ahead 2016, due to continued economic uncertainties.

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