Bank ABC Islamic announces nine months 2022 net profit of $29.6 million

Bank ABC Islamic - today announces its results for the first nine months ending 30 September 2022: 

The Bank closed the third quarter with net profit of US$ 29.6 million, 11% higher than the same period last year. Net operating income before credit losses for the nine months period ending 30 September 2022 stood at US$ 32.1 million, 2.9% higher on a year-on-year basis. Having come out of the pandemic, the core customer business has stabilised in 2022, as reflected in almost 3% growth in top line revenues on year-on-year basis. Despite the uncertainty created by the geo-political situation in Europe, the overall macro-economic environment for the GCC region and our core target markets has remained positive, resulting in meaningful improvement in our cost of credit. 

Business Performance (nine-month period):

• Net profit of US$ 29.6 million, 11% higher than same period last year 
• Net operating income before credit losses of US$32.1 million, 2.9% higher than the same period 2021.
•  Allowances for credit losses for the period were a write back of US$4.0 million compared to US$0.9 million reported during the same period last year.
• Operating expenses were US$6.2 million, 21.2% higher compared to US$5.1 million for last year. 

Business Performance (three-month period):

• Net profit for the third quarter was US$8.9 million compared to US$7.5 million reported in the third quarter of last year.
• Net operating income before credit losses was US$9.0 million compared to US$9.7 million for the same period of last year.
• Allowances for credit losses for the period were a write back of US$2.1 million compared to US$0.4 million charge reported during the same period last year.
• Operating expenses were US$2.0 million, compared to US$1.8 million for the same period of last year.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.397 billion as of September 30, 2022, compared to US$2.332 billion at 2021 year-end.
• Investments were at US$823 million, compared to US$852 million at 2021 year-end.
• Murabaha receivables and Ijarah were at US$1,477 million, compared to US$1,420 million at 2021 year-end.
• Shareholders’ equity on September 30, 2022, stood at US$319 million, compared to US$297 million at 2021 year-end, an increase by 7.3%.
• The bank’s capital base remains very strong with a capital adequacy ratio of 43.5%, predominantly Tier 1, which totalled 42.7%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “The core client business remained stable for the Bank on a year-on-year basis despite volatility in profit rate environment that kept the capital markets business subdued. This was more than offset by increase in revenues from core banking products like cash management and trade finance. An improved credit environment further enhanced the net profitability for the Bank. We are pleased with the year-to-date performance of the Bank and looking forward to closing the year on a strong footing.”