​Manama, Bahrain: Bank ABC Islamic - today announces its results for the first half ending 2023:

The Bank continues to show performance acceleration with a 20.2% increase in half year net profit compared to the same period last year. Net operating income before credit losses for the six month period ending 30 June 2023 stood at US$ 30.8 million, 33% higher on a year-on-year basis. The growth in income and profitability is at the back of substantial 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$ 24.9 million, 20.2 % higher than same period last year.
  
• Net operating income before credit losses of US$30.8 million, 33.0% higher than the same period in 2022. 
• Operating expenses of US$6.0 million, 42.4% higher compared to US$4.2 million for last year.
• The bank’s capital base remains very strong with a capital adequacy ratio of 38.2%.
  

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “The positive business momentum continued from the last quarter, benefiting from stable income from core client business as well as favorable profit rate environment. Cash management, trade finance, financial & capital markets businesses outperformed during the first half of the year. Credit cost remained in check, though the higher operating income was partially offset by a large one-off expense related to a legacy legal case in first quarter of the year. Despite this one-off expense, we are pleased to have concluded the first half of the year with overall profitability showing a healthy 20% growth on a year-on-year basis. Bank’s balance sheet has also shown steady growth at the back of strong and healthy capital base.”

​Business Performance (three-month period):

• Net profit for the second quarter was US$15.0 million compared to US$11.9 million reported in the second quarter of last year.
• Net operating income before credit losses was US$17.0 million compared to US$14.0 million for the same period of last year.
• Operating expenses were US$2.0 million, compared to US$2.1 million for the same period of last year.

​Business Performance (six-month period):

• Net profit of US$ 24.9 million, 20.2 % higher than same period last year.
• Net operating income before credit losses of US$30.8 million, 33.0% higher than the same period in 2022.
• Allowances for credit losses for the period were a write back of US$0.3 million compared to a write back of US$2.0 million reported during the same period last year.
• Operating expenses were US$6.0 million, 42.4% higher compared to US$4.2 million for last year.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.575 billion as of June 30, 2023, compared to US$2.415 billion at 2022 year-end.
• Investments were at US$913 million, compared to US$882 million at 2022 year-end.
• Murabaha receivables, Ijarah and Musharaka financing were at US$1,572 million, compared to US$1,451 million at 2022 year-end.
• Shareholders’ equity on June 30, 2023, stood at US$316 million, compared to US$330 million at 2022 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 38.2%, predominantly Tier 1, which totalled 37.2%.​​

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