Bank ABC first quarter net profit surges 94%

TDT | Manama                                                

The Daily Tribune – www.newsofbahrain.com     

Bank ABC yesterday reported a 94% surge in its first quarter profit as operating income grew helped by growth across all core markets and beneficial interest rates.

The Group said it has started the year on a robust footing with a strong 21% growth in revenues compared to the same period last year driven by diversified business growth and tailwinds from rising interest rate environment.

The balance sheet remained healthy, maintaining strong capital and liquidity ratios.

Consolidated net profit attributable to the shareholders of the parent was US$60 million, a growth of 94% from US$31 m in the year-ago quarter .

Earnings per share was US$0.02, up 94% from US$0.01 in the same quarter last year.

Total comprehensive income attributable to the shareholders of the parent was negative US$1 m, compared to an income of US$8 m reported in 2022, primarily due to depreciation of the Egyptian pound against US$, to some extent counterbalanced by a strengthening Brazilian Real.

Total Operating Income grew by 21% from the year-earlier quarter, reflecting growth across all the core markets and beneficial interest rates environment.

Operating expenses was higher by 10% compared to the same period last year, from a combination of supporting business growth, strategic transformation, and high inflationary conditions.

Loans and Advances, stood at US$17.9 billion, slightly lower than the US$18.2 bn reported at 2022 year-end, with deal volume set to pick up across the rest of 2023.

Looking ahead, the Group said it remains focused on disciplined cost control while continuing its investments into the strategic digital initiatives to build its ‘bank of the future’.

Commenting, Bank ABC’s Group Chairman, Saddek Omar El Kaber, said, “We are delighted with the excellent start to the year, which builds on business momentum from 2022 and continues to show performance acceleration, with a remarkable 94% increase in our Q1 net profit compared to same period last year.”

He added: “While there are global banking industry pressures and economic challenges in a number of our markets, the Group’s diversified business portfolio and robust balance sheet management positions Bank ABC to continue its strong upward trend in profitability improvement over the rest of 2023.”