Manama, Bahrain: Bank ABC Islamic - today announces its results for the first quarter of 2024: 

The Bank closed the first quarter with net profit of US$ 10.8 million, 9.6% higher than the same period last year. The growth in income and profitability is at the back of growth in core customer business as well as higher profit rate environment. The balance sheet remained healthy, maintaining strong capital ratio. 

Key Performance Highlights

• Net profit of US$10.8 million, 9.6 % higher than same period last year. 
• Operating income of US$43.2 million, 29.7% higher than the same period in 2023 and net income attributable to quasi-equity of US$24.0 million, 23.1% higher compared to quarter one 2023.
• Operating expenses were US$6.7 million, 64.8% higher compared to US$4.0 million for last year. 
• The bank’s capital base remains very strong with a capital adequacy ratio of 42.1%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We started 2024 with continued positive business momentum from last year, which was a record year for the Bank with respect to income and profitability. Core client business grew further at the back of strong performance from various product lines including trade finance, cash management as well as capital markets and treasury products. We closed 6 Sukuk mandates during the first quarter as Joint Lead Manager. The growth in operating income was partially offset by a rise in operating expenses due to a one-off legal charge arising from a legacy transaction. Despite the extra-ordinary expense, we have closed the first quarter with healthy profitability. We remain cautiously optimistic of the business environment for rest of the year.”

A more detailed summary of the Financial Results is explained below:

Business Performance (three-month period):

• Net profit for the first quarter was US$10.8 million compared to US$9.9 million reported in the first quarter of last year.
• Operating income of US$43.2 million, 29.7% higher than the same period in 2023 and net income attributable to quasi-equity of US$24.0 million, 23.1% higher compared to quarter one 2023.
• Allowances for credit losses for the period were a charge of US$1.6 million compared to a write back of US$0.2 million reported during the same period last year.
• Operating expenses were US$6.7 million, compared to US$4.0 million for the same period of last year. Adjusting for exceptional charge, expenses were 9.5% higher compared to quarter one 2023.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.508 billion as of March 31, 2024, compared to US$2.501 billion at 2023 year-end.
• Investments were at US$1.0 billion, compared to US$809 million at 2023 year-end.
• Murabaha receivables, Ijarah and Musharaka financing were at US$1,442 million, compared to US$1,566 million at 2023 year-end.
• Shareholders’ equity on March 31, 2024, stood at US$328 million, in line with 2023 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 42.1%, predominantly Tier 1, which totalled 41.0%.