Bahrain - Bank ABC Islamic closed the half year ending June 30, 2022 with net profit of $20.7 million, 7.8 per cent higher than the same period last year.

Net operating income before credit losses for the six-month period ending June 30, 2022 stood at $23.1m, also 7.8pc higher on a year-on-year basis.

The growth in income and profitability is at the back of substantial pick up in core customer business as well as a higher profit rate environment.

This is despite the headwinds that the bank faces on account of uncertainty on the global geopolitical front as well as high inflationary environment.

Most product areas have performed well during this period except for capital markets business, which remains subdued because of volatility in the market caused by the geopolitical situation.

Operating expenses were $4.2m, 25.8pc higher compared to $3.3m for last year.

The bank’s capital base remains very strong with a capital adequacy ratio of 36.2pc.

Commenting, Hammad Hassan, managing director of Bank ABC Islamic, said, “We are very pleased with the growth witnessed in our core banking business during first half of the year, despite markets remaining challenging on account of geopolitical factors and high inflationary environment. The coverage and product teams are focused on new-to-bank customer acquisition as well as on offering innovative solutions to our client base.

“We are particularly delighted to have been recognised for our performance excellence as Mena Islamic Finance Bank of the year by MEED. We remain on track with our expectations for performance in 2022 at the back of improvement in macroeconomic credit environment and the region benefiting from higher oil price.”

Net profit for the second quarter was $11.9m compared to $8.8m reported in the second quarter of last year.

Net operating income before credit losses was $14m compared to $9.7m for the same period of last year.

Allowances for credit losses for the period were a write back of $25,000 compared to $0.6m reported during the same period last year.

Operating expenses were $2.1m compared to $1.5m for the same period of last year.

Bank ABC Islamic’s total assets stood at $2.293 billion as of June 30, 2022, compared to $2.332bn at 2021 year-end.

Investments were at $784m, compared to $852m at 2021 year-end.

Murabaha receivables and Ijarah were at $1,440m, compared to $1,420m at 2021 year-end.

Shareholders’ equity on June 30, 2022, stood at $291m, compared to $297m at 2021 year-end, 2.1pc lower, because of dividend payment offset by profit generated during the period.

The bank’s capital base remains very strong with a capital adequacy ratio of 36.2pc, predominantly tier 1, which totalled 35.5pc.

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