​Manama, Bahrain: Bank ABC Islamic today announces its results for the first nine months ending 2023.

The Bank closed the third quarter with net profit of US$35.1 million, 18.6% higher than the same period last year. Net operating income before credit losses for the nine months period ending 30 September 2023 stood at US$ 44.1 million, 37.4% higher on a year-on-year basis. The growth in income and profitability is at the back of higher profit rate environment as well as stable core customer business. The balance sheet remained healthy, maintaining strong capital ratio. ​

Key Performance Highlights 

• Net profit of US$35.1 million, 18.6% higher than same period last year. 
• Net operating income before credit losses of US$44.1 million, 37.4% higher than the same period in 2022. 
• Operating expenses of US$8.4 million, 35.0% higher compared to US$6.2 million for last year. 
• The bank’s capital base remains very strong with a capital adequacy ratio of 41.5%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “The year-to-date performance of the Bank is promising and is based on stable performance from core client business as well as favorable higher profit rate environment. Capital markets activity picked up this year after a subdued 2022. We have been active on this front and lead managed several high profile Sukuk mandates during the year. Cash management, trade finance and financial & markets products also outperformed. Credit cost remained in check. 

We are pleased to have concluded the nine-month period with overall profitability showing a healthy 18.6% growth on a year-on-year basis. We maintain a strong capital base with healthy capital ratios. The Bank continues to support ABC Group’s global Islamic finance franchise in Algeria and UK as well provides product and Shariah support to ila alburaq, ila’s Islamic product offering in Bahrain. Performance across all these businesses have been impressive.”

Business Performance (three-month period):

• Net profit for the third quarter was US$10.2 million compared to US$8.9 million reported in the third quarter of last year.
• Net operating income before credit losses was US$13.4 million compared to US$9.0 million for the same period of last year.
• Operating expenses were US$2.4 million, compared to US$2.0 million for the same period of last year.
  

Business Performance (nine-month period):

• Net profit of US$35.1 million, 18.6 % higher than same period last year. 
• Net operating income before credit losses of US$44.1 million, 37.4% higher than the same period in 2022. 
• Allowances for credit losses for the period were a charge of US$0.3 million compared to a write back of US$4.0 million reported during the same period last year.
• Operating expenses were US$8.4 million, 35.0% higher compared to US$6.2 million for last year. 
  

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.457 billion as of September 30, 2023, compared to US$2.415 billion at 2022 year-end.
• Investments were at US$952 million, compared to US$882 million at 2022 year-end.
• Murabaha receivables, Ijarah and Musharaka financing were at US$1,398 million, compared to US$1,451 million at 2022 year-end.
• Shareholders’ equity on September 30, 2023, stood at US$335 million, compared to US$330 million at 2022 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 41.5%, predominantly Tier 1, which totalled 40.4%.