Friday 14 June 2024

Hammad Hassan

Bank ABC Islamic Q1 net profit rises 9.6pc to $10.8m

MANAMA, May 14, 2024

Bank ABC Islamic has posted a first-quarter (Q1) net profit of $10.8 million, 9.6% higher than the same period last year on the back of growth in core customer business as well as higher profit rate environment. The balance sheet remained healthy, maintaining strong capital ratio. 
The bank’s operating income of $43.2 million in Q1, is 29.7% higher than the same period in 2023 and net income attributable to quasi-equity of $24.0 million, 23.1% higher compared to Q1 2023.
Operating expenses were $6.7 million, 64.8% higher compared to $4.0 million for last year. The bank’s capital base remains very strong with a capital adequacy ratio of 42.1%.
Positive business momentum
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.”
The bank’s allowances for credit losses for the period were a charge of $1.6 million compared to a write back of $0.2 million reported during the same period last year.
Operating expenses
Operating expenses were $6.7 million, compared to $4.0 million for the same period of last year. Adjusting for exceptional charge, expenses were 9.5% higher compared to quarter one 2023.
ABC Islamic Bank’s total assets stood at $2.508 billion as of March 31, 2024, compared to $2.501 billion at 2023 year-end.
Investments were at $1.0 billion, compared to $809 million at 2023 year-end. Murabaha receivables, Ijarah and Musharaka financing were at $1.44 billion, compared to $1.57 billion at 2023 year-end.
Shareholders’ equity on March 31, 2024, stood at $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%.--TradeArabia News Service


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