Bank ABC Islamic first-half net profit surges to $24.9m

Bank ABC Islamic yesterday announced its results for the first half ending June 30, 2023.

The bank continues to show performance acceleration with a 20.2 per cent increase in half-year net profit compared with the same period last year.

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.

Net profit for the first half was $24.9m, 20.2pc higher than same period last year.

Net operating income before credit losses for the first half ended June 30, 2023 was $30.8m, 33pc higher than the same period in 2022.

Operating expenses for the first half were $6m, 42.4pc higher compared with $4.2m for the same period last year.

The bank’s capital base remains very strong with a capital adequacy ratio of 38.2pc.

Commenting on the results, Bank ABC Islamic managing director Hammad Hassan said, “The positive business momentum continued from the last quarter, benefiting from stable income from core client business as well as favourable profit rate environment. Cash management, trade finance, financial and 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 the 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 20pc growth on a year-on-year basis. The bank’s balance sheet has also shown steady growth on the back of strong and healthy capital base.”

For the three-month period ended June 30 this year, net profit was $15m compared with $11.9m reported in the second quarter of last year.

Net operating income before credit losses for the second quarter were $17m compared with $14m for the same period of last year.

Operating expenses for the second quarter were $2m, compared with $2.1m for the same period of last year.

Allowances for credit losses for the first half were a write back of $0.3m compared with a write back of $2m reported during the same period last year.

ABC Islamic Bank’s total assets stood at $2.575 billion as of June 30, 2023, compared with $2.415bn at 2022 year-end.

Investments were at $913m, compared with $882m at 2022 year-end.

Murabaha receivables, Ijarah and Musharaka financing were $1,572m, compared with $1,451m at 2022 year-end.

Shareholders’ equity on June 30, 2023 stood at $316m, compared with $330m at 2022 year-end.

The bank’s capital base remains very strong with a capital adequacy ratio of 38.2pc, predominantly Tier 1, which totalled 37.2pc.

Source: https://www.gdnonline.com/Details/1288505/Bank-ABC-Islamic-first-half-net-profit-surges-to-$249m