Bank ABC Islamic announces first half 2021 net profit of US$19.2mln

Manama, Bahrain: Bank ABC Islamic - today announces its results for the first half ending 30 June 2021:

Key Highlights of first half Performance

• Net profit of US$ 19.2 million reflects the Bank’s success in returning to normal performance after absorbing the one-off exceptional fraud related impairment in 2020
• Total operating income of US$21.5 million, 8.1% lower than the same period last year mainly on account of low profit rate environment and slightly lower fee income
• Total operating expenses 7.5% lower than same period last year as a result of cost rationalization programs and staff / client activity not having reverted to pre-pandemic level
• Balance sheet remains strong with capital adequacy ratio of 36.2%

Business Performance (three-month period):

• Net profit for the second quarter was US$8.8 million compared US$8.7 million reported in the second quarter of last year.
• Total operating income was US$9.7 million compared to US$9.9 million for the same period of last year.
• Allowances for credit losses for the period were a write back of US$0.6 million compared to US$0.4 million reported during the same period last year.
• Operating expenses were US$1.5 million, compared to US$1.4 million for the same period of last year.

Business Performance (six-month period):

• Net profit for the first six months was US$19.2 million compared to US$14.5 million reported in the first six months of last year.
• Total operating income was US$21.5 million compared to US$ 23.4 million for the same period of last year.
• Allowances for credit losses for the period were a write back of US$1.3 million compared to a charge of US$5.1 million reported during the same period last year.
• Operating expenses were US$3.3 million compared to US$3.6 million for the same period of last year. 

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$1.998 billion as of June 30, 2021 compared to US$2.314 billion at 2020 year-end.
• Shareholders’ equity at June 30, 2021 stood at US$286 million, compared to US$293 million at 2020 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 36.2%, predominantly Tier 1, which totalled 35.2%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic, said, “The Bank’s performance in the first half of the year is reassuring.  The Bank has been able to recover to its normal performance after it has absorbed the impact of fraud related credit costs of 2020. Whilst the top line continues to be adversely impacted by a combination of lower profit rate environment and a slowdown in the business activity not having resumed to pre-pandemic level, the Bank’s net profitability showed growth on a year-on-year basis, as a result of stability in the credit portfolio and positive macroeconomic outlook as compared to last year.

The operating environment is still not back to normal but there is positive hope for recovery as vaccination programs across countries and regions are gaining traction.  We remain cautiously optimistic about some pick up in market activity after the summer and as we go in to the next year.”

-Ends-

© Press Release 2021