Alubaf Arab International Bank recorded a net profit of US$ 10.8 million for the year ended 31 December 2017, as against a net loss of US$ 14.7 million last year 2016, which is an increase of 174%, year on year.
Net profit for the quarter ended 31 December 2017 was US$ 4.7 million, as compared to US$ 2.3 million for the corresponding period, last year 2016.
Mr. Hasan Abulhasan, CEO, commented that the year 2017, was a year to re-orient the business, to contain high risk exposures, requiring impairment provision, thereby, improve the asset risk profile of the Bank.
Thus, the underlying main driver for profit for the year 2017 was significant reduction on impairment provision on loans, which reduced by 72%, as compared to last year 2016, which reflects the improved asset risk profile. Further, the Bank improved its provision (specific and general) coverage ratio to 102% in 2017 from 84% in 2016.
The Operating income for the year 2017, declined compared to previous year 2016, both on account of Net interest income and Non-interest income. The Operating expenses, which includes staff costs, depreciation and other operating costs, was higher than last year same period by US$ 3.3 million, which represents an increase of 35%.
Cost to gross income ratio stood at 38% at year end 31 December 2017; The Bank’s liquid assets to total assets stood at 66% and Capital adequacy ratio stood at 37% at 31 December 2017, signifying the Bank’s strong capital and liquidity position.
Mr. Hasan expressed confidence in achieving more improved results for the forthcoming year, as the Bank has progressed and considerable efforts are already focused towards achieving the Bank’s strategic objectives.