Bahrain - Bank ABC (Arab Banking Corporation) said the group has started the year on a robust footing with a strong 21% growth in revenues in the first quarter compared to the same period last year, driven by diversified business growth and tailwinds from rising interest rate environment.

The consolidated net profit attributable to the shareholders of the parent, for Q1 2023 was $60 million, a growth of 94%, compared to $31 million reported for the same period last year.

The balance sheet remained healthy, maintaining strong capital and liquidity ratios, it said.

Bank ABC's Group Chairman Saddek Omar El Kaber commented: “We are delighted with the excellent start to the year, which builds on business momentum from 2022 and continues to show performance acceleration, with a remarkable 94% increase in our Q1 net profit compared to same period last year. While there are global banking industry pressures and economic challenges in a number of our markets, the Group’s diversified business portfolio and robust balance sheet management positions Bank ABC to continue its strong upward trend in profitability improvement over the rest of 2023.”

Q1 performance highlights

* Earnings per share for the period was $0.02, a growth of 94% compared to $0.01 in the same period last year.

* Total comprehensive income attributable to the shareholders of the parent was negative $1 million, compared to an income of $8 million reported in 2022, primarily due to depreciation of the Egyptian pound against USD, to some extent counterbalanced by a strengthening Brazilian Real.

* Total Operating Income grew by 21% compared to the same period last year, reflecting growth across all the core markets and beneficial interest rates environment.

* Operating expenses was higher by 10% compared to the same period last year, from a combination of supporting business growth, strategic transformation, and high inflationary conditions. The group, therefore, has positive income / cost ‘jaws’ of 11%, with a consequent improvement in its cost/income ratio. The group remains focused on disciplined cost control while continuing its investments into the strategic digital initiatives to build its ‘bank of the future’, it said.

Balance Sheet

* Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,043 million, compared to $4,095 million reported at the 2022 year-end, after absorbing the impact of dividend payment and FX translation on equity in subsidiaries.

* Total assets stood at $34.6 billion at the end of the period, compared to $36.6 billion at the 2022 year-end, a 7% reduction reflecting short-term asset and liability management actions. Loans and Advances, stood at $17.9 billion, slightly lower than the $18.2 billion reported at 2022 year-end, with deal volume set to pick up across the rest of 2023.

* Liquidity ratios are strong with LCR and NSFR at 200% and 125% respectively and liquid assets to deposits ratio healthy at 46%.

* Capital ratios are strong: Tier 1 is at 15.4% comprising predominantly CET1 at 13.7% and total Capital Adequacy Ratio (CAR) at 16.4%.

Bank ABC is a leading player in the region’s banking industry, with presence in 15 countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured finance, Capital Markets, Financial Markets, Real Estate finance to corporates and financial institutions. It also provides retail-banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan. 

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