Bank ABC yesterday announced its results for the third quarter and nine months year to date of 2023.
The group continued its strong performance, driven by strong underlying business growth combined with a rising interest rate environment.
Total operating income at $943 million, grew by 19 per cent year-over-year (YoY).
Capital and liquidity ratios remained at strong levels. The bank has recorded a 61pc increase YoY in the net profits attributable to its shareholders, which stands at $183m.
During this period, Bank ABC Group also won several distinguished awards recognising its commitment to delivering a new kind of banking experience for corporates and individuals. Bank ABC was declared the ‘Best Corporate Bank in Bahrain’ by Euromoney Awards for Excellence, which commended the bank for its impressive digital deployments and role in headline deals. Moreover, the bank’s digital mobile-only retail arm, ila Bank, won the ‘Best Consumer Digital Bank’ title for the third consecutive year, winning all six awards for Bahrain by Global Finance’s World’s Best Consumer Digital Bank Awards 2023.
Bank ABC’s Group chairman Saddek El Kaber remarked: “We are extremely pleased with the group’s excellent performance this year, with our refreshed strategy execution gaining firm traction. The group’s balance sheet remains healthy and robust, with strong capital and liquidity ratios. We look forward to continuing this great momentum as we steadily progress on our strategic journey to build our “bank of the future.”
Q3 2023 performance highlights:
Consolidated net profit attributable to the shareholders of the parent, for Q3 2023 was $62m, 41pc higher compared to $44m reported for the same period last year. Quarterly performance broadly tracked the year-to-date trends as explained below.
Earnings per share for the period was $0.02, compared to $0.01 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was a profit of $65 million compared to a loss of $6 million, reported for the same period last year.
Nine months 2023 performance highlights:
Consolidated net profit attributable to the shareholders of the parent, for the first nine months of 2023 was $183m, a growth of 61pc compared to $114m reported for the same period last year, driven by a combination of strong core business growth across many markets and effective management of interest rate exposures in a rising interest rate environment.
Earnings per share for the period was $0.06, compared to $0.04 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was a positive $174m, compared to a loss of $109m reported in 2022.
Last year, the loss arose due to changes in fair valuations of our bond portfolio and net impact of foreign exchange translation in overseas subsidiaries. However, in the current period these reduced significantly on a net basis with the strengthening of the Brazilian Real and positive movements in the fair market valuations of our bond portfolio offset the impact from depreciation of the Egyptian pound against the US dollar.
Total operating income (TOI) was $943m, 19pc higher compared to the $791m reported during the same period last year, reflecting the strong growth in underlying businesses and interest rates.
Operating expenses at $554m was higher by 12pc compared to $494m, during the same period last year, resulting from a combination of strategic investments and transformation initiatives, supporting business growth and general inflationary increases.
Given the TOI growth of 19pc YoY, the group, therefore, has positive income/cost ‘jaws’ of 7pc with a consequent improvement in the cost/income ratio.
The group remains focused on disciplined cost control while continuing to invest in key strategic digital initiatives to build our ‘bank of the future’.
Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,211m, compared to $4,095m reported at the 2022 year-end, 3pc higher primarily from incremental profits after dividends paid.
Total assets stood at $41.3bn at the end of the period, as compared to $36.6bn at the 2022 year-end, an increase of 13pc driven by business growth and portfolio management actions.
Healthy capital and liquidity ratios: Tier 1 Capital ratio at 15.4pc, of which CET1 at 13.7pc. LCR and NSFR at 247pc and 122pc respectively.Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).