Alubaf Arab International Bank has reported 11.1% increase in Net profit at US$ 40.7 million for last year when compared with $36.6m for 2013.
The bank said it had seen another year of “sequentially successful and strong financial performance”.
Net profit for the fourth quarter ended December last year was US$ 4.8 million as against US$ 7 million achieved in the same quarter of the previous year. This drop of 31.3% was mainly due to additional specific and general provisioning considered last year.
Total assets grew by 8.8% and return on average equity improved to 12.6% for the year . Interest income jumped by 31.6% over 2013 to US$ 45.6 million, mainly due to growth in loans portfolio, which grew by 33.7% over last year.
Alubaf chief executive Hasan Abulhasan said strategic initiatives of widening customer base, entering new markets and de-risking the loans portfolio to a balanced risk-return ratio sustained the steady growth levels and reflects the concerted efforts of the management.
Increase in non trading investments by 7.8% compared to 2013, also contributed to interest earnings.Trading realized gain amounted to $ 488 thousand.Gain on sale of non trading investments realized during the year was US$ 332 thousand.
Fee and commission income for the year dropped slightly by 8% compared to 2013, largely due to strategic moves on prudent risk management on changes to product mix and markets, the bank said.
With a provision for credit losses at US$ 7.8 million for the year, the net operating income stood at US$ 54.2 million for the year and resulted in a growth of 14.3% over the previous year figures.
The bank said it has seen a marginal increase in cost to income ratio, which stood at a level of 24.9%.Financial ratios indicated healthy and strong financial position of the bank, with Liquid assets to total assets at 46.3% and capital adequacy ratio at 42.19% as at 31 December 2014.
Mr. Abulhasan said he was confident that outlook for the current year was promising with the bank with in a strong financial position and gradual growth expected to continue.