Bank ABC Islamic yesterday announced its results for the year ending December 31, 2025.
The bank closed the year with net profit of $50.3 million, after deduction of taxation charge implemented in Bahrain effective January 2025.
The net profit for the year before tax and zakah grew by 13 per cent (2025: $59.5m vs 2024: $52.7m).
Total operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at $184.7m, 3.3pc higher than last year, while net income attributable to quasi-equity increased by 4.3pc.
Operating expenses were $10.1m, 26.9pc lower compared to $13.8m for last year.
The bank’s capital base remains strong with a capital adequacy ratio of 40.15pc.
The robust result reflects the growth in core business income, compensating for continuing market challenges characterised by geopolitical uncertainty and declining profit rate environment.
The bank’s total assets reached $3.3 billion, growth of 14.3pc on year-on-year while it continues to maintain healthy capital ratios.
For the three-months period, the bank has reported net profit for the fourth quarter of $10.9m compared to $14.4m reported in the fourth quarter of last year.
Allowances for credit losses for the fourth quarter were a charge of $2.1m, compared to a reversal of $0.7m in the same period of last year.
Operating expenses were $2.7m, compared to $2.6m for the same period of last year.
Bank ABC Islamic, received several prestigious industry awards, including ‘Best Sukuk House in Bahrain’ by Euromoney in 2025.
This award reflects the bank’s continued excellence in structuring, arranging and distributing Sukuk transactions, as well as its growing prominence in the regional Islamic finance landscape.
The award is one among a total of nine award titles the bank won in 2025.
Commenting on the results, Bank ABC Islamic managing director Hammad Hassan said, “The year 2025 was another strong year for the bank that has been growing steadily on a year-on-year basis. During 2025 Bahrain implemented the domestic minimum top-up tax (DMTT), which resulted in a tax charge of $8.7m for the year. This was the first year in which tax applied to the bank. The bank recorded net profit of $50.3m. However, the income before tax and zakah increased to $59.5m, compared to $52.7m in 2024, representing a year-on-year growth of approximately 13pc.”
He added, “The improvement in pre-tax profitability was driven by strong operating income growth, supported by higher income from core client business and investments, a significant increase in fees and commission income, disciplined cost management, and improved credit performance reflected in net reversal of expected credit losses.”
Mr Hassan concluded, “Our 2025 results demonstrate the underlying strength of our business model, with double digit growth in pre-tax profitability and continued focus on income diversification, efficiency and asset quality. We have also been recognised in 2025 by Euromoney Islamic Finance Awards as the Best Sukuk House in Bahrain and also received eight different awards from IFN (Islamic Finance News) that recognised us on various achievements, including the award of Best Islamic Corporate Bank in Bahrain. We look forward to continued resilience in performance in 2026.”
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