Bank ABC FY2023 profit surges 53% to US$235 million

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Helped by strong core business growth and a stable funding base, Bank ABC reported a surge in annual Net Profit attributable to its shareholders of 53% year on year (YoY) to reach US$235 million. Results also had the effect of interest rate tailwinds and steady cost of credit.

Total Operating Income reached a record high in the history of the Group at US$1,279m, a 16% growth YoY.

Balance sheet strength was also maintained, with capital and liquidity ratios at robust levels, while total assets reached US$44bn, crossing the US$40bn mark for the first time from a combination of loans, securities and liquid asset growth. 

Board of Directors recommend a cash dividend distribution (US$0.0225 per share or 2.25% of capital, approximately US$70m), a 50% increase YoY, in line with the Group’s profit growth.

Bank ABC’s Group Chairman, Saddek Omar El Kaber remarked, “The Group has posted record revenues and total assets and grew net profits strongly by 53% year on year.

This reflects a strong business model and diversified footprint, capable of leveraging the market opportunities amidst challenges and recovering economic conditions.

The many awards bestowed on the Group, including the prestigious Bank of the Year, Bahrain, reflect Bank ABC’s strong culture and our aspiration to remain relevant as a first Bank of choice for our customers.

The Group’s balance sheet remains healthy and robust, with strong capital and liquidity ratios. Our strategy execution is firmly on track and we look forward to continuing this great momentum into 2024 on our strategic journey to build “MENA’s international bank of the future.”

Q4 results

Consolidated net profit attributable to the shareholders of the parent was US$52m, 30% higher compared to US$40m reported for the same period last year.

Earnings per share was US$0.01, compared to US$0.01 in the same period last year.

Total comprehensive income attributable to the shareholders of the parent was a profit of US$84m compared to a profit of US$11m, reported for the same period last year.

Total operating income for Q4 2023 was US$336m, 8% higher compared to US$310m reported for the same period last year.

FY 2023 results

Consolidated net profit attributable to the shareholders of the parent, for the year 2023 was US$235m, a growth of 53% compared to US$154m reported last year, driven by a combination of strong core business growth across many markets and effective management of interest rate exposures in a rising interest rate environment.

Earnings per share was US$0.07, compared to US$0.05 in the same period last year. Total comprehensive income attributable to the shareholders of the parent was a positive US$258m, compared to a loss of US$98m reported in 2022.

Last year, the loss arose due to changes in fair valuations of our bond portfolio and net impact of foreign exchange translation in overseas subsidiaries.

However, in the current period these reduced significantly on a net basis with the strengthening of the Brazilian Real and positive movements in the fair market valuations of our bond portfolio, which offset the impact from depreciation of the Egyptian Pound against the US Dollar.

Total operating income for the year 2023 was US$1,279m, 16% higher compared to US$1,101m reported last year.