Bank ABC Islamic announces first half 2020 net profit of US$14.5 million

Net profit for the first half was US$14.5 million compared to US$18.9 million reported in the first half of last year.

Bank ABC Islamic announcesnbsp;first half 2020 net profit of US$14.5 million

Manama, Bahrain: Bank ABC Islamic – today announces its financial results for the first half ending 30 June 2020. Below are highlights of the Bank’s financial results.

Business Performance:

  • Net profit for the first half was US$14.5 million compared to US$18.9 million reported in the first half of last year.
  • Total operating income rose to US$23.4 million, 5% higher compared to the first six months of last year of US$22.3 million.
  • Operating expenses were US$3.6 million compared to US$3.8 million for the same period of last year.
  • Impairment charges for the period were US$5.1 million compared with a write back of US$0.7 million reported during last year and are largely in line with our expectations for cost of credit.

Balance Sheet:

  • ABC Islamic Bank’s total assets stood at US$2.309 billion as of June 30, 2020 compared to US$2.079 billion at 2019 year-end.
  • Shareholders’ equity at 30 June 2020 stood at US$279 million compared to US$365 million at 2019 year-end. The decrease is mainly due to the US$100 million dividend payment to the shareholders made during the period.
  • The Bank’s capital base remains very strong with a capital adequacy ratio of 32.3%, predominantly Tier 1, which totalled 31.3%.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic, said, “After a very strong performance in 2019, we started 2020 with positive momentum and a solid client transaction pipeline. Covid 19 pandemic became a reality by March this year, impacting our clients across most industries and sectors. The situation deteriorated as the year progressed and was further exacerbated by the oil price crisis.  Despite these challenges, the Bank’s total operating income grew by 5% compared to same period last year.  This was primarily at the back of continued momentum from last year and closure of key capital market transactions that were led by the Bank.  Despite the growth in operating income, our net profit for H1 declined to $14.5 Million as compared to $18.9 Million for H1 2019. The reduction in profitability was mainly on account of net increase in Expected Credit Losses (ECL charge). The increase in ECL during this period was a combination of a specific provision related to a client fraud in UAE combined with forward looking IFRS9 ECL. In making estimates for the latter, the Group and Bank have stress tested the macroeconomic factors conservatively in our ECL model.

Safety of our staff and continuity of business operations continue to remain the Group’s and Bank’s key priorities during these difficult times. In compliance with the guidelines from the Ministry of Health and the directives from the Central Bank of Bahrain, the Bank has been running its operations to ensure staff safety and has provided adequate assistance to clients that required payment relief on account of difficulties faced during the pandemic in line with CBB guidelines.  

As we live through these uncertain times, we continue to monitor the Covid-19 pandemic and related risks, which may have prolonged or longer lasting effects on economic conditions. However, we have a strong balance sheet and are well capitalized with CAR of 32%.  We continue to stress test and monitor our portfolio carefully on a constant basis and are committed to providing continued support to our customers in these difficult times.

We are thankful to CBB and to our parent, ABC Group for their continued support and guidance during these challenging times.”


Send us your press releases to

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases