Bank ABC Islamic announces 2024 year-end net profit of US$52.3 million
Manama, Bahrain: Bank ABC Islamic - today announces its results for the year ending 31, December 2024:
The Bank achieved 13% growth year-on-year with net profit of US$52.3 million compared to US$46.3 million for the last year. The increase in profitability was driven by core business growth and higher average asset volumes. The balance sheet remained healthy, maintaining strong capital ratio.
Bank ABC Islamic, has won the title of ‘Best Islamic Financial Institution in Bahrain’ at Global Finance’s World’s Best Islamic Financial Institution Awards 2024. This prestigious recognition attests to Bank ABC Islamic’s robust financial performance, commitment to continuous digital transformation, and strategic expansion while consistently offering customers tailored Islamic Finance solutions
Other awards received by Bank ABC Islamic in 2024 include, /p>
Best Islamic Finance Bank in Bahrain by IFN Banks Poll
Bahrain’s Most Transformed Islamic Bank by Euromoney Islamic Finance Awards
Islamic Finance Deal of the Year – North America for Bank ABC’s role as JLM & Bookrunner in US$ 600 million corporate Sukuk transaction for Air Lease Corp. – Euromoney Islamic Finance Awards
Key Performance Highlights
Net profit of US$52.3 million, 13% higher than last year.
Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$178.7 million, 20.0% higher than last year, while net income attributable to quasi-equity increased by 23.8%.
Operating expenses of US$13.8 million, 26.7% higher compared to US$10.9 million for last year.
The bank’s capital base remains very strong with a capital adequacy ratio of 45.9%.
Commenting on the results,
Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We are extremely pleased to announce a solid performance for 2024, with a net profit of $52.3 million. This 13% year-on-year increase in net profitability, despite challenging market and economic environment, is reflective of the Bank’s commitment to sustained growth and resilience. We have continued to strengthen our core business lines while making targeted investments in digital transformation to better serve our customers and adapt to their changing needs. This has been recognized by the market and the Bank has received several awards during the year, notably Best Islamic Financial Institution in Bahrain by the prestigious Global Finance, second consecutive year in a row. This could not have been possible without the tireless efforts of a dedicated team, the support of its shareholder, Bank ABC and with the guidance from the Board of Bank ABC Islamic. I am thankful to the hardworking team of Bank ABC Islamic, as well as to the Board and the shareholders. On behalf of the Board of Bank ABC Islamic Bank, I would like to take this opportunity to thank the Shariah Supervisory Board of the Bank and Central Bank of Bahrain for their continued guidance and support.
Business Performance (three-months period):
Net profit for the fourth quarter was US$14.4 million compared to US$11.2 million reported in the fourth quarter of last year.
Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity for the fourth quarter stood at US$47.4 million, 23.4% higher than fourth quarter of last year, while net income attributable to quasi-equity increased by 34% compared to the same period of last year.
Operating expenses were US$2.6 million, compared to US$2.5 million for the same period of last year.
Business Performance (Full Year):
Net profit of US$52.3 million, 13% higher than last year.
Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$178.7 million, 20.0% higher than last year, while net income attributable to quasi-equity increased by 23.8%.
Allowances for credit losses for the year were a charge of US$1.4 million compared to US$1.8 million reported last year.
Operating expenses of US$13.8 million, 26.7% higher compared to US$10.9 million for last year. Adjusting for the extraordinary one-off charge, expenses were 5.6% higher than last year.
Balance Sheet:
ABC Islamic Bank’s total assets stood at US$2.865 billion as of December 31, 2024, compared to US$2.501 billion at 2023 year-end.
Investments were at US$1.3 billion, compared to US$809 million at 2023 year-end.
Murabaha receivables, Ijarah and Musharaka investment were at US$1,550 million, compared to US$1,566 million at 2023 year-end.
Shareholders’ equity on December 31, 2024, stood at US$364 million, compared to US$328 million at 2023 year-end.
The bank’s capital base remains very strong with a capital adequacy ratio of 45.9%, predominantly Tier 1, which totalled 44.8%.
Hammad Hassan
Managing Director of Bank ABC Islamic