Bank ABC Islamic closed the first half of 2024 with a net profit of $25.1 million, 1 per cent higher when compared with $24.9m for the same period last year.
Total operating income for the six-month period ending June 30, 2024 stood at $35.8m, 16.5pc higher on a year-on-year basis.
The growth in income is a result of healthy client business across corporate, institutional, and sovereign segments. The balance sheet remained healthy, maintaining strong capital ratio.
Operating income after attribution to quasi-equity was $35.8m, 16.5pc higher than the same period in 2023.
Allowances for credit losses for the period were a charge of $1.4m, compared to a write back of $0.3m reported during the same period last year.
Operating expenses of $9.1m, were 52.4pc higher compared to $6m for last year. Adjusting for the extraordinary one-off charge, expenses were 17pc higher than previous period.
The bank’s capital base remains very strong with a capital adequacy ratio of 44.7pc.
Mr Hassan
Commenting on the results, Hammad Hassan, managing director of Bank ABC Islamic, said: “Positive business momentum continued from the start of the year. Cash management, trade finance and market products performed extremely well during first half of the year. We led eight sukuk issuances and several syndicated deals. This resulted in an operating income growth of 16.5pc on a year-on-year basis. However, this was partly offset by a one-off litigation expense of a legacy case.
“Despite higher operating expenses, we closed the first half of the year with a net profit of $25.1m, in line with last year’s performance. We have a healthy pipeline for new business and transactions, and remain cautiously optimistic about performance for the rest of the year.”
For the three-month period ended June 30, 2024 (second quarter), the bank posted net profit of $14.3m, compared to $15m reported in the second quarter of last year.
Operating income after attribution to quasi-equity during the quarter was $16.7m, compared to $17m for the same period of last year.
Operating expenses were $2.4m for the quarter, compared to $1.9m for the same period of last year.
Bank ABC Islamic’s total assets stood at $2.587 billion as of June 30, 2024, compared to $2.501bn as of end-2023.
Investments were at $1bn, compared to $809m at end-2023.
Murabaha receivables, ijarah and musharaka financing were at $1,531m, compared to $1,566m at end-2023.
Shareholders’ equity as of June 30, 2024, stood at $336m, compared to $328m at 2023 year-end.
The bank’s capital base remains very strong with a capital adequacy ratio of 44.7pc, predominantly tier 1, which totalled 43.7pc.
&uuid=(email))