Bank ABC Islamic reports US$38.8 million profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bank ABC Islamic reported robust performance in 2022, closing the year with a net profit of US$38.8 million, representing 29.8% improvement year-on-year from US$29.9 m in 2021.

Net profitability as well as Total operating income saw double digit growth compared to last year.

High profit rate environment and stable performance of client business resulted in 15.3% growth in Total operating income compared to last year.

Q4 results

Net profit for the fourth quarter was US$9.1 m compared to US$3.2 m reported in the fourth quarter of last year.

Net operating income before credit losses was US$14.0 m compared to US$8.8 m for the same period of last year.

Allowances for credit losses were a charge of US$2.4 m compared to US$2.0 m reported during the same period last year.

Operating expenses were US$2.4 m, compared to US$3.5 m for the same period of last year.

Full Year results

Net profit of US$ 38.8 m, 29.8 % higher than last year.

Net operating income before credit losses of US$46.1 m, 15.3% higher than US$ 40.0 m reported last year.

Allowances for credit losses for the year were a claw back of US$1.7 m compared to US$1.1 m charge reported during the same period last year.

Operating expenses of US$8.6 m were at same level of last year.

Commenting on the results, Hammad Hassan, Managing Director of Bank ABC Islamic said, “Steady customer business, effective utilization of the balance sheet resulting in healthy income from asset distribution and higher profit rate environment contributed to a year-on-year increase in total operating income of 15.3%.

Effective cost management and an improved credit environment further enhanced the net profitability for the Bank resulting in 29.8% increase in profit compared to last year.

We are cautiously optimistic on the outlook for 2023 in the backdrop of an inflationary and higher rate environment.”