Bank ABC Islamic posts $9.9m net profit

Bank ABC Islamic has announced solid results for the first quarter with its net profitability as well as total operating income witnessing double-digit growth compared to last year on the back of substantial higher profit rate environment as well as stabilised core customer business.

The Bahrain-based bank closed its first quarter with a net profit of $9.9 million, up 12 per cent over the same period last year, while its net operating income before credit losses of $13.8m grew 51.6pc higher than the same period in 2022.

Operating expenses stood at $4m, 88.9pc higher compared to $2.1m for last year and the bank’s capital base remains very strong with a capital adequacy ratio of 36.4pc.

Bank ABC Islamic said allowances for credit losses for the period were a write back of $0.2m compared to a write back of $2m reported during the same period last year.

Operating expenses stood at $4m compared to $2.1m for the same period last year.

The Islamic bank said its investments rose to $913m from $882m last year. Murabaha receivables, Ijarah and Musharaka financing witnessed growth for the period hitting $1.5 billion compared to $1.45bn last year.

Managing director Hammad Hassan said: “We started the year on solid ground supported with a healthy business pipeline from 2022. Our core customer business grew 14pc on a year-on-year basis. This was supported by the increased profit rate environment that provided further boost to the topline revenues.”

“The higher operating income was partially offset by a large one-off expense related to a legacy legal case. Despite this one-off expense, we are pleased to have concluded the quarter with overall profitability showing a healthy 12pc growth on a year-on-year basis,” he noted.

According to him, ABC Islamic Bank’s total assets stood at $2.534bn as of March 31, 2023, compared to $2.415bn last year.

Shareholders’ equity stood at $296m, compared to $330m at 2022 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 36.4pc, predominantly Tier 1, which totalled 35.5pc.

Source: https://www.gdnonline.com/Details/1241570/Bank-ABC-Islamic-posts-$99m-net-profit-