Bank ABC Islamic Announces 13.9% Increase in Nine-Months 2019 Net Profit to US$28.9 Million

Bank ABC Islamic - today announces its results for the nine months of 2019:

Business Performance (nine-month period):

• Net profit for the first nine months was US$28.9 million, 13.9% higher than the profit of US$25.3 million reported in the first nine months of last year.
• Total operating income rose to US$34.6 million, 11.4% higher compared to the first nine months of last year of US$31 million.
• Operating expenses were US$5.6 million, 19.8% higher compared to US$4.7 million for the same period of last year. When adjusted for one-off reversals in 2018, the expenses for 2019 grew to 5.2%.

Business Performance (three-month period):

• Net profit for the third quarter was US$9.9 million, 2.3% higher than the profit of US$9.7 million reported in the third quarter of last year.
• Total operating income rose to US$12.3 million, 18% higher compared to the third quarter of last year of US$10.5 million.
• Operating expenses were US$1.8 million, 61.1% higher compared to US$1.1 million for the same period of last year. When adjusted for one-off reversals in 2018, the expenses for 2019 grew to 1.9%.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$1.885 billion as of September 30, 2019, compared to US$1.745 billion in 2018 year-end.
• Shareholders’ equity at September 30, 2019, stood at US$357 million compared to US$352 million at 2018 year-end.
• The Bank’s capital base remains very strong with a capital adequacy ratio of 31.9%, predominantly Tier 1, which totaled 30.8%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic, said, “Our resilient performance from earlier quarters has continued, resulting in year-on-year increase in total operating income and net income of 11.4% and 13.9% respectively.  In the backdrop of slowdown in economic activity and subdued markets, such performance is a reflection of hard work and efforts put in by the coverage and product teams. The healthy increase in total operating income and net income have been achieved with an efficient use of balance sheets and proactive management of exposures related to weaker credits. As we enter the last quarter of the year, we remain cautiously optimistic and look forward to closing 2019 on a positive note.”