Bank ABC profit rises 25% to US$75 million

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

Bank ABC yesterday announced its results for the first quarter of 2024, reporting strong profits.

The Group has started the year on a strong footing with a Q1 net profit of US$ 75 million, a 25% growth over the corresponding period last year, driven by a 15% growth in total operating income from core business combined with higher interest rates.

Operating expenses and cost of credit are well controlled. The Group’s balance sheet remains healthy with robust capital and liquidity ratios.

Bank ABC’s Group Chairman, Saddek Omar El Kaber commented, “We are pleased with this excellent start to the year, which continues to demonstrate our accelerated growth and performance momentum.

Despite the prevailing regional geo-political and economic uncertainties, the Group’s ambitious strategy, diversified business portfolio, prudent risk management and robust balance sheet strength, positions Bank ABC well for a further improvement in profitability across the rest of 2024.”

Q1 Performance

Consolidated net profit attributable to the shareholders of the parent, for Q1 2024 was US$75 million, 25% higher compared to US$60 m reported for the same period last year.

Earnings per share for the period was US$0.024, a growth of 25% compared to US$0.019 in the same period last year.

Total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of the Egyptian pound against the US$, with the currency translation impact being counterbalanced to some extent by positive movements in the Fair Value of our bond portfolio. 

The net effect on total comprehensive income was a negative of US$28 million, compared to a negative of US$1 m reported in Q1 2023.

Total Operating Income for Q1 2024 was US$343 m, 15% higher compared to the US$299 m reported for the same period last year, reflecting growth across almost all the core markets.

Balance Sheet

Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was US$4,197 m, compared to US$4,300 m reported at the 2023 year-end, after absorbing the impact of dividend payment and FX translation on equity investment in overseas subsidiaries, mainly Egypt.

Total assets stood at US$41.4 billion as at the end of Q1 2024, compared to US$43.9 bn at the 2023 year-end, a 6% reduction, reflecting short-term asset and liability management actions.

Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 14.8%, of which CET 1 at 13.0%. LCR and NSFR at 260% and 126% respectively.

Bank ABC is a leading player in the region’s banking industry, with presence in 15 countries across five continents.

It provides innovative global wholesale banking solutions in both conventional and Islamic Finance, across Transaction Banking, Project and Structured Finance, Capital Markets, Financial Markets, Real Estate Finance to corporates and financial institutions.

It also provides consumer banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan.