Manama, Bahrain: Bank ABC Islamic today announced its results for the first half ending 2024:

The Bank closed the first half with a net profit of US$25.1 million compared to US$24.9 million for the same period last year. Total operating income for the six-month period ending 30 June 2024 stood at US$35.8 million, 16.5% higher on a year-on-year basis. The growth in income is a result of healthy client business across corporate, institutional, and sovereign segments. The balance sheet remained healthy, maintaining strong capital ratio.

Key Highlights of first half Performance

• Net profit of US$25.1 million, 1% higher than same period last year.
• Operating income after attribution to quasi-equity of US$35.8 million, 16.5% higher than the same period in 2023.  
• Operating expenses of US$9.1 million, 52.4% higher compared to US$6.0 million for last year.
• The Bank's capital base remains very strong with a capital adequacy ratio of 44.7%.
  
   
  
  Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “Positive business momentum continued from the start of the year. Cash Management, Trade Finance and market products performed extremely well during first half of the year. We led eight Sukuk issuances and several Syndicated deals. This resulted in an operating income growth of 16.5% on a year-on-year basis. However, this was partly offset by a one-off litigation expense of a legacy case. Despite higher operating expenses, we closed the first half of the year with a net profit of US$25.1 million, in line with last year's performance. We have a healthy pipeline for new business and transactions, and remain cautiously optimistic about performance for the rest of the year."
  
  

Business Performance (three-month period):

• Net profit for the second quarter was US$14.3 million, compared to US$15.0 million reported in the second quarter of last year.
• Operating income after attribution to quasi-equity of US$16.7 million. compared to US$17.0 million for the same period of last year.
• Operating expenses were US$2.4 million, compared to US$1.9 million for the same period of last year.

Business Performance (six-month period):

• Net profit of US$25.1 million, 1 % higher than the same period last year.
• Operating income after attribution to quasi-equity of US$35.8 million, 16.5% higher than the same period in 2023. 
• Allowances for credit losses for the period were a charge of US$1.4 million, compared to a write back of US$0.3 million reported during the same period last year.
• Operating expenses of US$9.1 million, 52.4% higher compared to US$6.0 million for last year. Adjusting for the extraordinary one-off charge, expenses were 17.0% higher than previous period.
  
   
  
  Balance Sheet:

• ABC Islamic Bank's total assets stood at US$2.587 billion as of June 30, 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$1,531 million, compared to US$1,566 million at 2023 year-end.
• Shareholders' equity on June 30, 2024, stood at US$336 million, compared to US$328 million at 2023 year-end.
• The Bank's capital base remains very strong with a capital adequacy ratio of 44.7%, predominantly Tier 1, which totalled 43.7%.
  

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