Bahrain: Bank ABC Islamic posts H1 net of $25.1mln; Q2 net at $14.3mln

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Bank ABC Islamic has posted a first-half (H1) net profit of $25.1 million and second quarter (Q2) net of $14.3 million.

Total operating income for the six-month stood at $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.

Operating expenses of $9.1 million was 52.4% higher compared to $6.0 million for last year. The bank’s capital base remains very strong with a capital adequacy ratio of 44.7%.

Q2 operating income

In Q2, operating income after attribution to quasi-equity was $16.7 million. Operating expenses were $2.4 million, compared to $1.9 million for the same period of last year.

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 $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.”

H1 business performance

Allowances for credit losses for the period were a charge of $1.4 million, compared to a write back of $0.3 million reported during the same period last year.

Operating expenses of $9.1 million, 52.4% higher compared to $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 $2.587 billion as of June 30, 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 $1,531 million, compared to $1,566 million at 2023 year-end. Shareholders’ equity on June 30, 2024, stood at $336 million, compared to $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%.