Antwerp Diamond Bank Posts Fall in Balance Sheet, Profit in 2013

The bank's net profit after tax was 5.7 million euros ($7.9 million), ADB said, pointing out that the closure of its office in New York City "had an adverse tax impact of eight million euros" ($11million).

The branch office was closed due to "the future strategic repositioning of the bank".

The bank said that "debtors remained stable as a result of its selective credit policy".

Meanwhile, net interest income globally from debtors was 52.9 million euros ($73 million).

"The world economy experienced subdued growth for a second year in 2013 with a small improvement in the last quarter," the bank said in a statement. "High unemployment rates worldwide, fiscal tightening in the US and Europe, political gridlocks over budgetary issues in the US and stricter Chinese government policies weighed on consumer luxury spending growth in general. As a result the diamond supply chain suffered of disconnect between too high rough diamond prices and stable polished prices.

"In this uncertain economic context, the bank continued to focus on a selective credit policy, on the increase of its margins and on the improvement of its operational efficiencies.

"In the fourth quarter, significant progress was made in the divestment process of ADB. An agreement was reached with a potential new shareholder, the Chinese Jiangsu Yinren Group Company Ltd., for the transfer of the totality of the shares held by the KBC group. This transaction is still subject to approval by the competent banking supervisors in the course of 2014." ADB is a fully owned subsidiary of the KBC Bank.