Bahrain - Bank ABC Islamic has achieved 13 per cent year-on-year growth in net profit at $52.3 million for the year ending December, 31 2024 compared to $46.3 million for 2023.

The increase in profitability was driven by core business growth and higher average asset volumes. The balance sheet remained healthy, maintaining strong capital ratio.

Total operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at $178.7m, 20pc higher than last year, while net income attributable to quasi-equity increased by 23.8pc.

Allowances for credit losses for the year were a charge of $1.4m compared to $1.8m reported in 2023.

Operating expenses of $13.8m were 26.7pc higher compared to $10.9m for 2023. Adjusting for the extraordinary one-off charge, expenses were 5.6pc higher than 2023.

The bank reported a net profit of $14.4m for the fourth quarter on 2024, up from $11.2m in the same period on 2023. Total operating income (after profit on murabaha and other payables and before attribution to quasi-equity) reached $47.4m, a 23.4pc increase year-on-year. Net income attributable to quasi-equity also rose by 34pc compared to the fourth quarter of the previous year. Operating expenses were $2.6m, slightly higher than the $2.5m reported for the same period last year.

Bank ABC Islamic’s total assets reached $2.865 billion as of December 31, 2024, compared to $2.501bn at the end of 2023. Investments increased to $1.3bn from $809m, while murabaha receivables, ijarah, and musharaka investments were slightly lower at $1.550bn, down from $1.566bn. Shareholders’ equity rose to $364m from $328m at the end of 2023.

The bank’s capital base remains very strong with a capital adequacy ratio of 45.9pc, predominantly tier 1, which totalled 44.8pc.

Commenting on the results, Bank ABC Islamic managing director Hammad Hassan said: “We are extremely pleased to announce a solid performance for 2024, with a net profit of $52.3m. This 13pc year-on-year increase in net profitability, despite challenging market and economic environment, is reflective of the bank’s commitment to sustained growth and resilience. We have continued to strengthen our core business lines while making targeted investments in digital transformation to better serve our customers and adapt to their changing needs. This has been recognised by the market and the bank has received several awards during the year, notably Best Islamic Financial Institution in Bahrain by the prestigious Global Finance, second consecutive year in a row. This could not have been possible without the tireless efforts of a dedicated team, the support of its shareholder, Bank ABC and with the guidance from the Board of Bank ABC Islamic.

“I am thankful to the hardworking team of Bank ABC Islamic, as well as to the Board and the shareholders. On behalf of the Board of Bank ABC Islamic Bank, I would like to take this opportunity to thank the Shariah Supervisory Board of the Bank and Central Bank of Bahrain for their continued guidance and support. We look forward to starting the new year with renewed energy and vigour and with cautious optimism of an even better performance in 2025.”

Bank ABC Islamic has been named ‘Best Islamic Financial Institution in Bahrain’ at Global Finance’s World’s Best Islamic Financial Institution Awards 2024. This accolade recognises the bank’s strong financial performance, dedication to digital transformation, strategic growth, and consistent delivery of tailored Islamic finance solutions.

Other 2024 awards received by Bank ABC Islamic include ‘Best Islamic Finance Bank in Bahrain’ from the IFN Banks Poll, ‘Bahrain’s Most Transformed Islamic Bank’ from the Euromoney Islamic Finance Awards, and ‘Islamic Finance Deal of the Year – North America’ (for its role in a $600m corporate sukuk transaction for Air Lease) also from Euromoney.

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