Bank ABC Group’s net profit surges to $154mln: Bahrain

PHOTO

Bank ABC Group (Arab Banking Corporation) has reported its total operating income crossed the $1 billion mark during 2022 for the first time in the bank’s history, with solid core business growth across the franchise, aided by higher interest rates prevalent during the year.

These strong revenues contributed to the group delivering a robust overall performance during 2022, with a headline net profit of $154 million, up 54 per cent on $100m in 2021.

A significant 29pc headline increase supported by growth across all the core markets and beneficial interest rates environment in addition to consolidation of full-year results of BLOM Bank Egypt (BBE) (2021 included five months of BBE revenues).

Operating expenses was higher by 21pc mainly due to full-year costs of BBE during 2022 (2021 included five months of BBE costs) and costs returning to pre-pandemic levels in core markets.

The group also continued its investments into its strategic digital initiatives to build its ‘bank of the future’.

Balance sheet remains strong with capital and liquidity ratios well above the regulatory requirements: the group’s T1 ratio is at 15.7pc, comprising predominantly CET1. LCR 225pc and NSFR 124pc.

Consolidated net profit for the three months of Q4 2022 was $40m, $20m higher, a growth of 100pc, compared to $20m reported for the same period last year.

Earnings per share for the period was $0.01, comparable to $0.01 in the same period in the previous year.

Total comprehensive income attributable to the shareholders of the parent was $11m, 15pc lower, compared to $13m reported for the same period last year.

Earnings per share for the period was at $0.05, compared to $0.03 in the previous year.

Total comprehensive income was a loss of $98m compared to total comprehensive income of $105m reported last year. Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,095m, 5.8pc higher than the $3,872m reported at the 2021 year-end.

Last year included additional perpetual tier 1 capital of $390m issued during the year.

Total assets stood at $36.6bn at the end of the period, 5pc higher compared to $34.9bn at the 2021 year-end mainly from a growth across the franchise in loans and advances, which stood at $18.2bn, 8.8pc higher than the $16.7bn reported at 2021 year-end.

On an underlying basis, total assets grew by 7.8pc.

Liquidity ratios are strong with LCR and SFR at 225pc and 124pc respectively and liquid assets to deposits ratio healthy at 48.1pc.

Capital ratios are strong: Tier 1 is at 15.7pc comprising predominantly CET1 at 14pc and total Capital Adequacy Ratio (CAR) at 16.8pc.

Bank ABC’s group chairman Saddek El Kaber commented, “In 2022 the group has delivered remarkable results, with record-breaking revenues of over $1bn, building momentum from the previous year with accelerated performance, which has contributed to a 54pc increase in our net profit to shareholders.

“On the back of this solid performance, we are setting bold aspirations for 2023, cautious of the expected economic headwinds such as tighter financial conditions, ongoing war in Europe and persistent inflationary conditions. We are confident of capitalising our strengths and leveraging our investments to continue to accelerate profitable growth during 2023.

“Another major milestone has been the achievement in Egypt of ‘Legal Day 1’ on January 1, 2023, as BBE merged with our existing franchise to create a much stronger combined Bank ABC Egypt, which will boost growth of our market share going forward.

In addition, our digital transformation programme continued to progress well with all Key Performance Indicators (KPIs) in our mobile-only bank ila, and our fintech payments provider AFS, exceeding our aspirational targets.”