Manama, Bahrain: Bank ABC Islamic - today announces its results for the first quarter of 2021:
Key Highlights of Q1 Performance
- Net profit of US$ 10.4 Million reflecting better economic outlook after the Bank absorbed the fraud related losses in 2020
- Total operating income of US$11.7 Million, 13 % lower than the same period 2020 mainly on account of low profit rate environment and slightly lower fee income
- Total operating expenses 13.6% lower than same period last year as a result of cost rationalization programs and staff / client activity not having reverted to pre-pandemic level
- Balance sheet remains strong with capital adequacy ratio of 40.7%
Business Performance
- Net profit for the first quarter was US$10.4 million compared to US$5.8 million reported in the first quarter of last year.
- Total operating income was US$11.7 million compared to US$ 13.5 million for the same period of last year.
- Allowances for credit losses for the period were a write back of US$0.7 million compared to a charge of US$5.4 million reported during the same period last year. The write back was mainly due to update in macroeconomic scenarios that reflected improving economic forecasts.
- Operating expenses were US$1.9 million compared to US$2.2 million for the same period of last year.
Balance Sheet:
- ABC Islamic Bank’s total assets stood at US$1.906 billion as of March 31, 2021 compared to US$2.314 billion at 2020 year-end.
- Shareholders’ equity at March 31, 2021 stood at US$303 million, compared to US$293 million at 2020 year-end.
- The bank’s capital base remains very strong with a capital adequacy ratio of 40.7%, predominantly Tier 1, which totalled 39.7%.
Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic, said, “The first quarter result is encouraging and reflective of a positive start to the year having been impacted by the combined effect of fraud related losses in 2020 and the pandemic. The operating environment is still not back to the pre-pandemic times. However, there is positive hope for recovery after the first half of the year albeit dependent on completion of successful vaccination programs in the region and subject to no further unexpected breakouts of the virus.”
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© Press Release 2021
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