Bank ABC announces results for the period ended 30 June 2026: Net profit attributable to the shareholders of the parent of US$111 million

Bank ABC (Arab Banking Corporation B.S.C.) - Bahrain Bourse Trading Code “ABC” - today announced its financial results for the the six-month period ended 30 June 2026.

The conflict in the Middle East continued to be a major external factor affecting Bank ABC’s performance through the first half of 2026. Heightened geopolitical tensions placed increasing strain on global and regional economic conditions, contributing to higher inflation and commodity prices and significant disruptions to trade flows and supply chains. This affected economic activity and business momentum to varying degrees across the markets in which the Group operates. Risks remain elevated, given the potential for further escalation, continued commodity market disruptions and broader geopolitical uncertainty.

Against this challenging backdrop, Bank ABC remained focused on operational resilience and business continuity, ensuring uninterrupted service to clients, supporting the wellbeing of its employees and maintaining business-as-usual operations across the franchise. At the same time, the Bank continued to enhance its risk management and monitoring capabilities, enabling the proactive identification and management of potential credit, market and liquidity risks arising from the evolving environment.

Despite these unusual operating conditions, the Group delivered resilient underlying operating performance, supported by the strength of its diversified footprint. H1 2026 Net Profit attributable to the shareholders of the parent was US$111 million, representing a reduction of 27% year on year (YoY). Underlying this, the Group’s Operating Profit performance remained broadly in line YoY, driven by a core business revenue growth of 5% YoY, and through disciplined cost management. The reduction in Net Profit was primarily driven by a higher provision charge compared with the prior year, reflecting prudent Expected Credit Loss (ECL) provisioning considering the prevailing macroeconomic environment, together with the absence of one-off recoveries recognised in the previous year. Capital and liquidity ratios remained robust and comfortably above regulatory requirements.

During the period, the Bank received several prestigious industry awards underscoring its continued commitment to business excellence, client centricity and innovation. Most recently in 2026, the Bank was awarded ‘Best Bank for Cash Management in the Middle East’, ‘Best Bank for Long-Term Liquidity Management in the Middle East’, Best Corporate Cross-Border Payments Solutions in the Middle East’ and ‘Best Cash Management Bank in Bahrain’ by Global Finance. In addition, Bank ABC’s mobile banking app was named the ‘Best Mobile Banking App in the Middle East’, while its digital subsidiary, ila Bank, was recognised as the ‘Best Retail Digital Bank in MENA,’ both by MEED’s MENA Banking excellence 2026.

Looking ahead to the second half of 2026, the Group will continue to monitor regional geopolitical and economic developments closely, while maintaining its focus on balance sheet strength, risk discipline and supporting clients across its core markets.  

Commenting on the H1 2026 results, Bank ABC Group Chairman, H.E. Mr. Naji Belgasem, said: “While global uncertainty remains elevated and has impacted certain of our key markets, business activity proved resilient across other parts of the Group. We remain focused on maintaining operational stability and prudent risk management. As we enter the second half of 2026, Bank ABC is well positioned, underpinned by its strong fundamentals and well-diversified business model, to continue serving as a trusted financial partner to our customers. The Group remains fundamentally strong, with a strong capital position and healthy liquidity ratios to safeguard long term shareholder value”.

Detailed summary of the Financial Results is explained below:

Q2 2026 Performance Highlights

    Consolidated net profit attributable to the shareholders of the parent, for the 3 months of Q2 2026 was US$59 million, a reduction of 22% compared to US$76 million reported for the same period last year, mainly due to a higher provision charge arising from the prevalent macro economic uncertainties. 

    Earnings per share for the period was US$0.016, compared to US$0.024 in the same period last year.

    Total comprehensive income attributable to the shareholders of the parent was US$165 million in Q2 2026, a 67% increase compared to a US$99 million during the same period last year, mainly due to the positive fair value movements in the Bank’s securities portfolio during the 3 months of Q2 2026, which recovered from the sharp decline witnessed at end Q1 2026.  These were partially offset by FX rate movements in BRL and lower Profits as compared to the same period last year.

    Total Operating Income for Q2 2026 was US$353 million; a 4% growth compared to US$338 million reported for the same period last year. 

H1 2026 Performance Highlights

    Consolidated net profit attributable to the shareholders of the parent, for H1 2026 was US$111 million, a reduction of 27% compared to US$152 million reported for the same period last year, mainly due to a higher provision charge. 

    Earnings per share for the period was US$0.030, compared to US$0.046 in the same period last year.

    Total comprehensive income attributable to the shareholders of the parent was US$92 million in H1 2026, a decrease of 64%  compared to a US$253 million during the same period last year, reflecting the lower net profit during the period, negative fair value movements in the Bank’s securities portfolio during the 6 months of H1 2026 as compared to the prior period and FX rate movements, mainly in BRL and EGP.

    Total Operating Income for H1 2026 was US$697 million; a 5% growth compared to US$666 million reported for the same period last year. 

Balance Sheet

    Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was US$4,705 million, compared to US$4,718 million reported at YE25, after absorbing the impact of dividend payment.

    Total assets stood at US$46.9 billion as at the end of H1 2026, compared to US$49.9 billion at the 2025 year-end, a 6% reduction, reflecting short-term asset and liability management fluctuations. The banks’ lending portfolio showed healthy and diversified growth with loans and advances increasing by 4% compared to YE25.

    Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 15.5% of which CET 1 at 13.2%. LCR and NSFR at 267% and 123% respectively.

Bank ABC is a leading player in the region’s banking industry, with a presence in fifteen countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic Finance, across Transaction Banking, Project and Structured Finance, Capital Markets, Financial Markets, Real Estate Finance to corporates and financial institutions. It also provides consumer banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan. 

The full financial statements and press release are available on the Bahrain Bourse and Bank ABC’s website. Bank ABC will host a virtual Investors call to discuss the H1 2026 earnings on 13 August 2026. Further details and the investor presentation are available at www.bank-abc.com.