Bank ABC Islamic has announced solid results for the first quarter with its net profitability as well as total operating income witnessing double digit growth compared to last year on the back of substantial higher profit rate environment as well as stabilised core customer business.

The Bahrain-based bank closed its first quarter with a net profit of $9.9 million, up 12% over the same period last year, while its net operating income before credit losses of $13.8 million grew 51.6% higher than the same period in 2022.

Operating expenses stood at $4 million, 88.9% higher compared to $2.1 million for last year and the bank’s capital base remains very strong with a capital adequacy ratio of 36.4%.

Bank ABC Islamic said allowances for credit losses for the period were a write back of $0.2 million compared to a write back of $2.0 million reported during the same period last year.

Operating expenses stood at $4 million, compared to $2.1 million for the same period last year.

The Islamic bank said its investments rose to $913 million from $882 million last year. Murabaha receivables, Ijarah and Musharaka financing witnessed growth for the period hitting $1.5 billion compared to $1.45 billion last year.

Commenting on the performance, Managing Director Hammad Hassan said: "We started the year on solid ground supported with a healthy business pipeline from 2022. Our core customer business grew 14% on a year-on-year basis. This was supported by the increased profit rate environment that provided further boost to the topline revenues."

"The higher operating income was partially offset by a large one-off expense related to a legacy legal case. Despite this one-off expense, we are pleased to have concluded the quarter with overall profitability showing a healthy 12% growth on a year-on-year basis," he noted.

According to him, ABC Islamic Bank’s total assets stood at $2.534 billion as of March 31, 2023, compared to $2.415 billion last year.

Shareholders’ equity stood at $296 million, compared to $330 million at 2022 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 36.4%, predominantly Tier 1, which totalled 35.5%.

"We also feel honoured and grateful for being awarded ‘Best Islamic Financial Institution in Bahrain’ title at Global Finance World’s Best Islamic Financial Institutions Awards for 2023. A prestigious acknowledgement like this renews our commitment towards excellence in all that we do," he added.

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