|
RAPAPORT... The Antwerp Diamond Bank (ADB), a subsidiary of the KBC Bank, reported that its balance sheet fell 7 percent year on year to $2.4 billion (EUR 1.692 billion) in 2013. A selective credit issuing policy during the year held the bank's number of debtors stable, and global net interest income rose almost 13 percent year on year to $73 million (EUR 52.9 million), while interest income from debtors accounted for $69 million (EUR 49.8 million) as a result of increased margins in the second half of 2013. Profit fell 31 percent to $7.9 million (EUR 5.703 million). The bank stated that it encountered an adverse impact of $11 million (EUR 8 million) after closing its New York office during the period.
ADB confirmed a capital adequacy ratio of 11.29 percent during the year, compared with 10.05 percent in 2012. The bank added that there was "subdued growth" across the world's economy during the year, with high unemployment rates worldwide, fiscal tightening in the U.S. and Europe, political gridlock in the US and stricter Chinese government policies weighing on consumer luxury spending. As a result of those factors, the diamond supply chain suffered a disconnect between (too high) rough diamond prices against relatively stable polished prices.
During the fourth quarter of 2013, progress was made regarding the divestment of ADB from KBC, with a potential new shareholder, Jiangsu Yinren Group Company Ltd. The transaction is pending and subject to approval, according to ADB.
|