Manama, Bahrain: For the first half of 2025, Bank ABC Islamic reported a net profit of US$ 26.9 million, a 7.3% increase compared to US$ 25.1 million for the same period last year. The performance was driven by 4.4% rise in total operating income after profit on Murabaha and other payables and before attribution to quasi-equity, which reached US$ 89.6 million due to effective balance sheet management. Additionally, provisions for the period were US$ 2.9 million write-back compared to US$ 1.4 million charge in HY 2024. ​​​

​​​Key Performance Highlights

• Net profit of US$26.9 million, 7.3% higher than same period last year.
• Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$89.6 million, 4.4% higher than the same period last year, while net income attributable to quasi-equity increased by 11.3%.
• Operating expenses were US$5.1 million, 43.9% lower compared to US$9.1 million for last year.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We are pleased to report a strong first half of 2025, delivering both in assets and profitability despite a competitive market environment, and geo-political uncertainties around us. Our business momentum remained strong across all product lines, especially capital markets business, both Loan Syndications as well as Debt Capital Markets. We acted as Joint Lead Manager for ten Sukuk issuances during first half of the year, supporting high profile corporates, financial institutions and a sovereign.​​​

Our capabilities in capital markets have been recognized, with the award of, ‘Best Sukuk House in Bahrain’, at Euromoney Islamic Awards 2025 in May this year. ​​​

With a solid balance sheet, and prudent risk management, we are well-positioned to remain on the growth trajectory, while maintaining strong capital and liquidity positions for the remainder of 2025.” ​​​

A more detailed summary of the Financial Results is explained below:​​​

Business Performance (three-month period):

• Net profit for the second quarter was US$ 12.4 million compared to US$ 14.3 million reported in the second quarter of last year.
• Operating expenses were US$ 2.3 million, compared to US$ 2.4 million for the same period of last year.

​Business Performance (six​-month period):​​​

• Net profit for the first half was US$ 26.9 million compared to US$ 25.1 million reported last year.
• Allowances for credit losses for the period were a write back of US$ 2.9 million compared to a charge of US$ 1.4 million reported during the same period last year.
• Operating expenses were US$ 5.1 million, compared to US$ 9.1 million for the same period of last year. After adjusting for exceptional charge of US$ 4.0 million in the prior year, expenses were consistent with the same period in 2024.

Balance Sheet:​​​

• ABC Islamic Bank’s total assets sto​od at US$ 3.250 billion as of June 30, 2025, compared to US$ 2.865 billion at 2024 year-end.
• Investments were at US$ 1.4 billion, compared to US$ 1.3 billion at 2024 year-end, primarily comprised of sukuks issued by financial institutions and sovereigns.
• Murabaha receivables, Ijarah and Musharaka financing were at US$ 1,833 million, compared to US$ 1,550 million at 2024 year-end.
• Shareholders’ equity on June 30, 2025, stood at US$ 354 million, compared to US$ 364 million at 2024 year-end.
• The bank’s capital base remains very strong with a capital adequacy ratio of 36.9%, predominantly Tier 1, which totalled 36.2%.
  

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