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 in 2017, signifying a year-on-year increase of 39 percent.
Net profit for the quarter ended December 2018 was US$ 3m, as compared to US$ 4.7m for the corresponding period of the previous year.
Chief executive Hasan Abulhasan said 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 2018 to US$ 5.8m from US$ 10.5m in 2017, a reduction of 45pc.
Overall, gross operating income for 2018 was almost in line with 2017, while the operating expenses increased by 5pc in 2018, compared with 2017.
Thus, the cost to gross income ratio increased marginally by 1pc and stood at 39pc at year- the end of 31 December 2018, compared with 38pc at the previous year-end. The bank’s liquid assets to total assets remained steady at 66pc and the capital adequacy ratio continued to be strong at 43pc on 31 December 2018, signifying the bank’s strong capital and liquidity position.
Mr. Abulhasan expressed confidence in achieving more improved results for the forthcoming year, as the bank is already on the path of growth by aligning towards strategic objectives to enhance its shareholder value.