Bank ABC Q1 profit at US$31 million | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Bank ABC Q1 profit at US$31 million

TDT | Manama  

The Daily Tribune – www.newsofbahrain.com

Bank ABC yesterday announced first quarter financial results, reporting a “robust” start to the year, continuing from the progress achieved in 2021, a year of recovery from post-pandemic conditions.

“We are extremely pleased with the Group’s solid profitability for the first quarter of 2022, achieved despite geo-political, industry and market challenges,” said Bank ABC’s Group Chairman, Saddek Omar El Kaber.

El Kaber further said the bank continues to achieve great progress on its transformation journey to build a “bank of the future”, while focusing firmly on its balance sheet strength, as evidenced by the Group’s AT1 issue and the change in outlook to ‘Stable’ by Standard and Poor’s”.

Bank ABC also said the integration of Group’s acquisition of BLOM Bank Egypt S.A.E is in advanced stages

article-image

Q1 results

Consolidated net profit attributable to the shareholders of the parent was US$31 m, 3% higher compared to US$30 m reported for the same period last year.

Earnings per share was US$0.01, unchanged from the corresponding period last year. Total comprehensive income attributable to the shareholders of the parent was US$8 m, compared to a loss of US$16 m reported for the same period last year.

This arose from a net impact of foreign exchange translation in foreign subsidiaries and change in fair value of debt instruments. Net interest income was US$177 m, 45% higher against US$122 m reported for the same period last year, supported by higher loan volumes, consistent margins and the addition from BBE.

Operating expenses were at US$159 m, 27% higher than US$125 m for the same period last year, from a combination of consolidation of BBE as well as the Group returning to a more normal level of activity. The Group continues to enforce appropriate cost discipline without compromising on investments into the Group’s digital transformation and strategic initiatives.

Headline Net Operating Profit before credit loss expense and taxation was US$88 m, 54% higher compared to US$57 m reported for the same period last year. On an underlying basis*, the Group achieved a Net Operating Profit before credit loss expense and taxation of US$94 m for the quarter, 31% higher compared to US$72 m in Q1 2021, also with the addition of BBE.

Impairment charges were US$25 m compared to US$20 m reported for the same period last year. Loans and Advances were 2% higher for the quarter at US$17.0 billion compared with levels of US$16.8 bn at 2021 year-end reflecting the Group’s selective underwriting and a strengthening in BRL FX rate. Deposits were at US$24.9 bn, compared to the levels of US$25.8 bn at 2021 year-end.