BANK ABC Islamic reported total operating income after profit on murabaha and other payables and before attribution to quasi-equity of $92.5 million for the first half of 2026, up 3.2 per cent from the same period last year, while net income attributable to quasi-equity increased by 7.9pc.
Net profit, however, declined by 40.3pc to $16.1m, compared with $26.9m in the prior-year period, primarily due to a charge for expected credit losses versus a reversal in the same period last year.
Key performance highlights include operating expenses were $5.1m, same as corresponding period last year.
Allowances for credit losses for the period were a charge of US$ 8.2 million compared to a write back of US$ 2.9 million reported during the same period last year.
Net profit for the second quarter was $6.8m compared to $12.4m reported in the second quarter of last year.
Operating expenses for Q2-2026 were $2.4m, compared to $2.3m for the same period of last year.
Commenting on the results, Bank ABC Islamic managing director Hammad Hassan said: “The region continues to face heightened geopolitical tensions, and our focus remains on maintaining operational resilience and the safety of our staff. With the support of our parent, Bank ABC, we have remained fully operational throughout the crisis, servicing our clients seamlessly and maintaining normal business operations.
“Our half year results show resilient top-line performance; however, our net profit reduced by 40pc, in comparison to the same period 2025, mainly due to an increase in expected credit losses, compared with a provisioning reversal in the same period last year. We remain conservative in our approach towards provisioning, particularly in light of the current macro-economic environment. Our balance sheet remains healthy with strong capital ratios.
“For rest of the year, our focus will remain on maintaining our operational resilience, keeping our balance sheet healthy, and providing seamless services to our clients, who are also being adversely affected by the current circumstances. Supply chain disruption continues to impact many businesses in our region as well as globally. Maintaining the well-being of our staff also remains our key priority in these uncertain times.”
Bank ABC Islamic’s total assets stood at $3.473 billion as of June 30, 2026, compared to $3.274bn at 2025 year-end.
Investments were at $1.481bn, compared to $1.510bn at 2025 year-end, primarily comprised of sukuks issued by financial institutions, sovereigns and corporates.
Murabaha receivables, ijarah and musharaka financing were at $1,935m, compared to $1,700m at 2025 year-end.
Shareholders’ equity on June 30, 2026, stood at $376m, compared to $383m at 2025 year-end.
The bank’s capital base remains very strong with a capital adequacy ratio of 33.1pc, predominantly tier 1, which totalled 32.6pc.
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