Antwerp Diamond Bank presents 2012 figures with higher profit and growth
The Antwerp Diamond Bank (ADB), a fully owned subsidiary of the KBC Bank, announced its 2012 financial results, indicating the bank is adequately positioned for the future. The ADB is the only bank in the world that exclusively caters for the diamond and diamond jewellery industry.
The ADB states that after an extremely volatile 2011, 2012 was a less eventful though difficult year for the diamond and jewellery industry. The main economic indicators reflected an unstable business climate with the Asian economies struggling with a slowdown. The price balance between rough and polished diamonds was cumbersome to restore, putting the profitability of the trade and manufacturing industry under constant pressure.
In this difficult economic environment the bank applied a conservative and selective credit policy aimed at optimal allocation of capita land improved quality of the credit portfolio. This resulted in a balanced growth of advances to customers (+7%) and limited write-offs on the performing portfolio.
On account of capital efficiency as well as in view of optimizing the treasury management, other assets, such as securities and advances to banks, were reduced. As a consequence the balance sheet total remained stable.
Partly as a result of the higher margins, especially on the Indian market, interest income (+10%), the operating profit (+11%) and the net profit (+152%), all soared, despite onetime costs and depreciations.
With a capital ratio of 10.05% which amply meets the current international norms, notwithstanding a stricter calculation method, and a second consecutive increase in market share in the international diamond financing, the bank concluded it is adequately positioned for the future.
