Bank ABC continued its strong performance with an H1 net profit of $150 million, a 24 per cent growth over the corresponding period last year, driven by a 10pc increase year on year (YOY) in total operating income from core business growth and higher average asset volumes, after absorbing the impact of EGP depreciation, underpinned by both operating expenses and cost of credit being well controlled.
The group’s balance sheet strength was also maintained, with capital and liquidity ratios at robust levels, while total assets reached $44 billion.
During the period, Bank ABC received a number of prestigious industry awards, including ‘Best Trade Finance Bank in the Middle East’ by GTR, ‘Best Islamic Financial Institution in Bahrain’ by Global Finance, and ‘Bahrain’s Best Digital Bank’ by Euromoney. In addition, ila, Bank ABC’s digital mobile-only retail bank, was named the ‘Fastest-Growing Digital Bank in Mena Central’ by Mastercard and the ‘Best Digital Bank in Bahrain’ by MEED.
Moreover, the bank was recognised for its leading role in several landmark transactions, notably ‘Global Sukuk Deal of the Year’ for the $1bn sukuk issuance for Energy Development Oman and ‘Global Sukuk Deal of the Year’ for the $1bn sukuk issuance for the Finance and National Economy Ministry.
Bank ABC’s Group chairman Saddek El Kaber remarked: “The group has continued its excellent performance throughout the first half of the year, which reflects its broad-based business model that leverages market opportunities across the group’s international franchise. The group’s balance sheet remains healthy and robust, with strong capital and liquidity ratios. The accelerated implementation of our strategy positions the group for additional growth momentum during the rest of the year, as we further anchor our position as ‘Mena’s International Bank of the Future’.”
Consolidated net profit attributable to the shareholders of the parent for Q2 2024 was $75m, 23pc higher compared to $61m reported for the same period last year.
Earnings per share for the period was $0.024, compared to $0.020 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of Brazilian Real against the USD, and changes in the fair valuations of the group’s bond portfolio during the quarter.
Net effect of these on total comprehensive income was a negative of $28m compared to a positive $110m, reported for the same period last year.
Total operating income for Q2 2024 was $331m, 6pc higher compared to $312m reported for the same period last year.
Consolidated net profit attributable to the shareholders of the parent for H1 2024 was $150 million, a growth of 24pc compared to $121m reported last year, driven by a combination of core business growth across many markets, higher average asset volumes and steady cost of credit.
Earnings per share for the period was $0.046, compared to $0.036 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was affected by the devaluation of Egyptian pound and Brazilian Real against the USD.
Net impact of these on the total comprehensive income was a negative of $56m, compared to a positive $109m reported during the same period last year (when the currencies remained broadly stable).
Total operating income for H1 2024 was $674m, 10pc higher compared to $611m reported last year, reflecting broad based growth across almost all the core markets.
Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,173m, compared to $4,300m reported at the 2023 year-end, 3pc lower after absorbing dividend payments and the impact of EGP and BRL devaluation.
Total assets stood at $44.3bn at the end of the period, as compared to $43.9bn reported at the 2023 year-end, an increase of 1pc driven by core business and growth, balance sheet optimisation and portfolio management actions.
The group’s tier 1 capital ratio was 14.5pc, of which CET1 was 12.8pc whereas LCR and NSFR were 233pc and 123pc respectively.
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