Bank ABC Islamic, a wholly-owned subsidiary of Arab Banking Corporation (ABC), has reported a net profit of $24.9 million for the first half of 2023, up 20.2 % over the same period last year, while its net operating income before credit losses surged 33% to hit $30.8 million.
Announcing its results for the six-month period ended June 30, 2023, the bank said its operating expenses rose to $6 million, thus registering a 42.4% growth over last year’s figure of $4.2 million.
Also the bank’s balance sheet remained healthy, maintaining strong capital ratio, while its capital base remains very strong with a capital adequacy ratio of 38.2%.
The Bahrain-headquartered bank concluded the first half with overall profitability showing a healthy 20% growth on a year-on-year basis. Its balance sheet has also shown steady growth at the back of strong and healthy capital base.
This growth in income and profitability was mainly driven by the substantial higher profit rate environment as well as stable core customer business, it added.
On its Q2 results, Bank ABC Islamic said its net profit rose to $15 million from $11.9 million, while its net operating income before credit losses stood at $17 million compared to $14 million for the same period last year.
The operating expenses for the three-month period ended June 30, 2023 stood at $2 million, compared to $2.1 million last year, while its net operating income before credit losses was $17 million compared to $14 million for the same period of last year.
Bank ABC Islamic said its total assets surged to $2.57 billion as of June 30, 2023, compared to $2.415 billion at 2022 year-end.
Also the Bahrain-based Islamic bank saw its investments soar to $913 million for the period compared to $882 million at 2022 year-end.
The shareholders’ equity as of June 30, 2023, stood at $316 million, compared to $330 million at 2022 year-end.
On the solid performance, 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 favorable profit rate environment. Cash management, trade finance, financial & 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 first quarter of the year,” stated Hassan.—Zawya News
