Bank ABC Islamic announces first quarter 2023 net profit of US$9.9 million

TDT | Manama                                                

The Daily Tribune – www.newsofbahrain.com     

Bank ABC Islamic - announces its results for the first quarter of 2023:

The Bank closed the first quarter with net profit of US$ 9.9 million, 12.0% higher than the same period last year. Net Profitability as well as Total Operating Income saw double digit growth compared to last year. The growth in income and profitability is at the back of substantial higher profit rate environment as well as stabilised core customer business. The Bank has won the ‘Best Islamic Financial Institution in Bahrain’ title at Global Finance World’s Best Islamic Financial Institutions Awards for 2023.

Key Performance Highlights

▪       Net profit of US$ 9.9 million, 12.0 % higher than same period last year.

▪       Net operating income before credit losses of US$13.8 million, 51.6% higher than the same period in 2022.

▪       Operating expenses were US$4.0 million, 88.9% higher compared to US$2.1 million for last year.

▪       The bank’s capital base remains very strong with a capital adequacy ratio of 36.4%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We started the year on solid ground supported with a healthy business pipeline from 2022. Our core customer business grew 14% on a year-on-year basis. This was supported by the increased profit rate environment that provided further boost to the topline revenues. The higher operating income was partially offset by a large one-off expense related to a legacy legal case. Despite this one-off expense, we are pleased to have concluded the quarter with overall profitability showing a healthy 12% growth on a year-on-year basis.

We also feel honored and grateful for being awarded ‘Best Islamic Financial Institution in Bahrain’ title at Global Finance World’s Best Islamic Financial Institutions Awards for 2023. A prestigious acknowledgement like this renews our commitment towards excellence in all that we do.”

A more detailed summary of the Financial Results is explained below:

Business Performance (three-month period):

▪       Net profit for the first quarter was US$9.9 million compared to US$8.8 million reported in the first quarter of last year.

▪       Net operating income before credit losses was US$13.8 million compared to US$9.1 million for the same period of last year.

▪       Allowances for credit losses for the period were a write back of US$0.2 million compared to a write back of US$2.0 million reported during the same period last year.

▪       Operating expenses were US$4.0 million, compared to US$2.1 million for the same period of last year.

Balance Sheet:

▪       ABC Islamic Bank’s total assets stood at US$2.534 billion as of March 31, 2023, compared to US$2.415 billion at 2022 year-end.

▪       Investments were at US$913 million, compared to US$882 million at 2022 year-end.

▪       Murabaha receivables, Ijarah and Musharaka financing were at US$1,547 million, compared to US$1,451 million at 2022 year-end.

▪       Shareholders’ equity on March 31, 2023, stood at US$296 million, compared to US$330 million at 2022 year-end.

▪       The bank’s capital base remains very strong with a capital adequacy ratio of 36.4%, predominantly Tier 1, which totalled 35.5%.