MANAMA: Bank ABC (Arab Banking Corporation) continues to build on its robust performance trajectory with first half (H1) of 2022 total operating income crossing the $500 million mark for the first time in its history, reflecting good underlying business growth and consolidation of BLOM Bank Egypt (BBE).
Net profit attributable to the shareholders of the parent is $70m, a growth of 27pc compared to previous year.
Total operating income grew both on a headline (28pc) and underlying (31pc) basis reflecting higher interest rates and volumes, consistent margins and also benefiting from consolidation of BBE.
Operating expenses on a headline basis were higher than 2021, with integration of BBE and with the business returning to normal level of activity compared to previous year.
The group remains focused on disciplined cost control while continuing to invest into digital transformation to build its ‘bank of the future’.
Balance sheet remains strong with capital and liquidity ratios well above the regulatory requirements: the group’s T1 ratio is 16.6pc, comprising predominantly 14.7pc CET1, LCR 244pc and NSFR 126pc.
The group is weathering the unexpected headwinds from geopolitical developments and persistent high inflation across some markets, being counterbalanced by sustained high oil prices and improving economic activity in other markets, as well as rising interest rates.
Bank ABC’s Group chairman Saddek El Kaber said: “We are extremely pleased with the group’s performance with historic achievement in revenues and solid growth in profits during the first half of 2022 despite unexpected headwinds.
Bank ABC continues to focus on building the ‘bank of the future’ by leveraging its strong balance sheet, the strength of its global franchise and expediting the digital transformation plans.
At this juncture, we are delighted with the widespread industry recognition including our recent win of the ‘Innovation in Digital Banking Award 2022 for Middle East’. We are looking forward to further progress on our strategy and gaining momentum in our revenues to achieve record levels for the full year.”
Consolidated net profit attributable to the shareholders of the parent, for the second quarter of 2022 was $39m, 56pc higher compared to $25m reported for the same period last year.
Earnings per share for the period was $0.01, unchanged from the corresponding period last year.
Total comprehensive income attributable to the shareholders of the parent was a loss of $111m, compared to $137m profit reported for the same period last year, mainly from a net impact of foreign exchange translation in foreign subsidiaries and change in fair value of debt instruments.
Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,105m, compared to the $3,872m at the 2021 year-end, 6pc higher, benefiting from the additional tier 1 capital issued during the Q1-2022 and after absorbing dividends paid.
Total assets stood at $34.3bn at the end of the period, comparable to the $34.9bn at the 2021 year-end.
Loans and advances were 2pc higher for the quarter at $17bn compared with levels of $16.8bn at 2021 year-end reflecting the group’s selective underwriting and a strengthening in BRL FX rate.
Deposits were at $24.7bn, compared to the levels of $25.8bn at 2021 year-end.
Liquidity ratios are strong with LCR and NSFR at 244pc and 126pc respectively with comfortable buffer and liquid assets to deposits ratio at 50pc.
Capital ratios strong: CET1 at 14.7pc, tier 1 at 16.6pc and total CAR at 17.7pc.
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