Bank ABC Group has started the year on a robust footing with a strong 21 per cent growth in revenues for the first quarter of 2023 compared to the same period last year driven by diversified business growth and tailwinds from a rising interest rate environment.

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

Consolidated net profit for the three months of Q1-2023 was $60 million, a growth of 94pc, compared to $31m reported for the same period last year.

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

Total comprehensive income was negative $1m, compared to an income of $8m reported in 2022, primarily due to the depreciation of the Egyptian pound against the US dollar, to some extent counterbalanced by a strengthening Brazilian real.

Total operating income grew by 21pc compared to the same period last year, reflecting growth across all the core markets and beneficial interest rates environment.

Operating expenses were higher by 10pc 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 11pc, with a consequent improvement in its cost/income ratio.

The group remains focused on disciplined cost control while continuing its investments into strategic digital initiatives to build its ‘bank of the future’.

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

Total assets stood at $34.6 billion at the end of the period, compared to $36.6bn at the 2022 year-end, a 7pc reduction reflecting short-term asset and liability management actions.

Loans and advances, stood at $17.9bn, slightly lower than the $18.2bn 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 200pc and 125pc respectively and the liquid assets to deposits ratio is healthy at 46pc.

Capital ratios are strong: Tier 1 is at 15.4pc comprising predominantly CET1 at 13.7pc and total capital adequacy ratio (CAR) at 16.4pc.

Bank ABC Group chairman Saddek 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 94pc increase in our Q1 net profit compared to the 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.”

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