Alubaf Arab International Bank recorded a net profit of US$ 15 million for the year ended 31 December 2018, as against a net profit of US$ 10.8 million last year 2017, signifying an increase of 39%, year on year.
Net profit for the quarter ended 31 December 2018 was US$ 3 million, as compared to US$ 4.7 million for the corresponding period, last year 2017.
Mr. Hasan Abulhasan CEO, commented that the increase in profit for 2018, was achieved, mainly due to improved asset quality that contributed to a direct reduction on impairment provision during the year 2018 to US$ 5.8 million from US$ 10.5 million last year 2017, a reduction of 45%. Overall, gross operating income for 2018 was almost in line with last year 2017, while the operating expenses increased by 5% in the year 2018, compared to last year 2017.
Thus, Cost to gross income ratio increased marginally by 1% and stood at 39% at year- end 31 December 2018, compared to 38% at last year end 2017. The Bank’s liquid assets to total assets remained steady at 66%, and Capital adequacy ratio continued to be strong at 43% at 31 December 2018, 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 is already in the path of growth by aligning towards strategic objectives to enhance its shareholder value.