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 the 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, the last year 2016.
Chief executive, Hasan Abulhasan said that the year 2017was a year to re-orient the business, to contain high-risk exposures, requiring impairment provision, thereby, improving the asset risk profile of the bank. Thus, the underlying main driver for profit
for the year 2017 was a significant reduction in impairment provision on loans, which reduced by 72pc, as compared to the last year 2016, which reflects the improved asset risk profile. Further, the Bank improved its provision (specific and general) coverage
ratio to 102pc in 2017 from 84pc in 2016.
The Operating income for 2017 declined compared with the previous year, both on account of net interest income and non-interest income.
The Operating expenses, which include staff costs, depreciation, and other operating costs, were higher than 2016 by $3.3, which represents an increase of 35pc. The cost to gross income ratio stood at 38pc at year-end 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 on achieving strategic objectives.