Bank ABC Group has started the year on a strong footing with a first-quarter (Q1) net profit of $75 million, a 25 per cent growth over $60m for the corresponding period last year, driven by a 15pc growth in total operating income from core business combined with higher interest rates. Operating expenses and cost of credit are well controlled. The group’s balance sheet remains healthy with robust capital and liquidity ratios.

Bank ABC group chairman Saddek El Kaber commented, “We are pleased with this excellent start to the year, which continues to demonstrate our accelerated growth and performance momentum. Despite the prevailing regional geo-political and economic uncertainties, the group’s ambitious strategy, diversified business portfolio, prudent risk management and robust balance sheet strength, positions Bank ABC well for a further improvement in profitability across the rest of 2024.”

The bank’s earnings per share for the period were $0.024, a growth of 25pc compared to $0.019 in the same period last year.

Total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of the Egyptian pound against the USD, with the currency translation impact being counterbalanced to some extent by positive movements in the fair value of the bond portfolio. The net effect on total comprehensive income was a negative of $28m, compared to a negative of $1m reported in Q1 2023.

Total operating income for Q1 2024 was $343m, 15pc higher compared to the $299m reported for the same period last year, reflecting growth across almost all the core markets.

Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,197m, compared to $4,300m reported at the 2023 year-end, after absorbing the impact of dividend payment and FX translation on equity investment in overseas subsidiaries, mainly Egypt.

Total assets stood at $41.4 billion as at the end of Q1-2024, compared to $43.9bn at the 2023 year-end, a 6pc reduction, reflecting short-term asset and liability management actions.

The bank’s balance sheet remains healthy with Tier 1 capital ratio at 14.8pc.

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