Bank ABC Islamic posts US$29.6 m profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bank ABC Islamic yesterday reported 2022 Q3 and nine-month profit, helped by revenues from core banking products and an improved credit environment, despite volatility in the profit rate environment.

Hammad Hassan, Managing Director of Bank ABC Islamic said, “The core client business remained stable for the Bank on a year-on-year basis despite volatility in the profit rate environment that kept the capital markets business subdued.

This was more than offset by an increase in revenues from core banking products like cash management and trade finance. An improved credit environment further enhanced the net profitability of the Bank.

We are pleased with the year-to-date performance of the Bank and looking forward to closing the year on a strong footing.”

Nine-month results

Net profit rose 11% to US$ 29.6 million, while net operating income before credit losses rose 2.9% to US$32.1 m from the same period of 2021.

Allowances for credit losses for the period were a writeback of US$4.0 m compared to US$0.9 million reported during the same period last year. Operating expenses were US$6.2 m, 21.2% higher compared to US$5.1 m for last year.

Q3 results

Net profit was US$8.9 m compared to US$7.5 m in the third quarter of last year. Net operating income before credit losses was US$9.0 m compared to US$9.7 m for the same period of last year.

Allowances for credit losses were a write back of US$2.1 m compared to US$0.4 m charge reported during the same period last year. Operating expenses were US$2.0 m, compared to US$1.8 m for the same period of last year.

“Having come out of the pandemic, the core customer business has stabilised in 2022, as reflected in almost 3% growth in top line revenues on year-onyear basis.

Despite the uncertainty created by the geo-political situation in Europe, the overall macro-economic environment for the GCC region and our core target markets has remained positive, resulting in meaningful improvement in our cost of credit,” the bank said.