Antwerp Diamond Bank Reports Sharp Rise in Net Profit

The bank, a fully owned subsidiary of the KBC Bank, said that following a volatile 2011, last year was a "less eventful though difficult year" for the diamond and jewelry 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 capital and improved quality of the credit portfolio."

As a result, it saw a balanced growth of advances to customers which rose seven percent, and limited write-offs on its performing portfolio.

The bank reported that due to capital efficiency as well as in view of optimizing the treasury management, other assets, such as securities and advances to banks, were reduced leading its balance sheet to remain stable.

Partly as a result of higher margins, especially on the Indian market, net profit soared 152 percent, operating profit jumped 11 percent, and interest income rose 10 percent, despite onetime costs and depreciations.

"With a capital ratio of 10.05 percent, which amply meets the current international norms, notwithstanding a stricter calculation method, a second consecutive increase in market share in international diamond financing, the bank is adequately positioned for the future," the bank added.