Manama, Bahrain: ​The Bank delivered solid results during 2023, benefiting from the improvements in the profit rate environment as well as better performance of its core business. The Bank closed the year with net profit of US$46.3 million, representing 19.4% improvement year-on-year from US$ 38.8 million in 2022. Total operating income before credit losses stood at US$ 59.4 million, 28.7% higher on a year-on-year basis. The balance sheet remained healthy, maintaining strong capital ratio.

Recognizing the Bank’s performance, the Islamic International Rating Agency (IIRA) has reaffirmed ratings of Bank ABC Islamic at A+(bh)/A1(bh) on the national scale and A-/A2 on the international scale. Outlook on the assigned ratings is ‘Stable’.  

​Key Performance Highlights

• Net profit of US$46.3 million, 19.4% higher than last year.
• Total operating income before credit losses of US$59.4 million, 28.7% higher than last year.
• Operating expenses were US$10.9 million, 26.2% higher compared to US$8.6 million last year. Adjusting for a one-off, exceptional expense of $1.8 MM, they were 6% higher on year-on-year basis.
• The bank’s capital base remains very strong with a capital adequacy ratio of 40.5%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We have closed the year with sound profitability and a strong balance sheet. Our capital ratios remain robust and healthy. The full year performance is underpinned by stable performance from core client business, a tight control on credit cost, as well as favorable profit rate environment. Capital markets business outperformed during the year with the Bank leading several high profile Sukuk mandates for Sovereigns, GREs and private corporations. Of these, the AirLease Sukuk, where Bank ABC was the Sole Lead Arranger, Sukuk Structuring Bank and JLM won the Bonds, Loans & Sukuk Middle East Awards 2023 for the “Global Corporate Sukuk Deal of the Year” and “Aircraft Finance Deal of the Year”.

The Bank continued its support in building Islamic franchise for ABC Group. One of the significant achievements during the year was collaboration with ila Bank and successful launch of alburaq retail Islamic banking products in May 2023.

During the year, the Bank has been recognized by the renowned Global Finance as the ‘Best Islamic Finance Institution in Bahrain’. The Bank was also recognized in the IFN Best Bank poll as IFN Best Islamic Bank in Bahrain 2023.

Overall, 2023 was a great year for Bank ABC Islamic and whilst markets remain demanding, we are well positioned to embrace the challenges of 2024.

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

Business Performance (three-month period):

• Net profit for the fourth quarter was US$11.2 million compared to US$9.1 million reported in the fourth quarter of last year.
• Total operating income before credit losses was US$15.3 million compared to US$14.0 million for the same period of last year.
• Operating expenses were US$2.5 million, compared to US$2.4 million for the same period of last year.

Business Performance (Full Year):

• Net profit of US$46.3 million, 19.4 % higher than last year.
• Total operating income before credit losses of US$59.4 million, 28.7% higher than last year.
• Allowances for credit losses for the year were a charge of US$1.8 million compared to a write back of US$1.7 million reported last year.
• Operating expenses were US$10.9 million, 26.2% higher compared to US$8.6 million last year. Adjusting for a one-off, exceptional expense of $1.8 MM, they were 6% higher on year-on-year basis.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.501 billion as of December 31, 2023, compared to US$2.415 billion at 2022 year-end.
• Investments were at US$809 million, compared to US$882 million at 2022 year-end.
• Murabaha receivables, Ijarah and Musharaka financing were at US$1,566 million, compared to US$1,451 million at 2022 year-end.
• Shareholders’ equity on December 31, 2023, stood at US$328 million, compared to US$330 million at 2022 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 40.5%, predominantly Tier 1, which totalled 39.5%

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