The Bank closed the first quarter with net profit of US$9.3 million driven by robust contributions from core financing activities and stable investment returns. Total operating expenses were well controlled at $2.7 million, slightly down from $2.8 million in the same quarter last year, reflecting disciplined cost management. The bank’s total assets reached $3.8 billion, growth of 16.9% compared to year end 2025 while it continues to maintain healthy capital ratios.

Key Performance Highlights

• Net profit of US$9.3 million compared to $14.4 million reported same period last year.
• Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$45.8 million, 3.2% higher from the same period last year, while net income attributable to quasi-equity increased by 9.0%.
• Operating expenses of US$2.7 million, 2.2% lower compared to US$2.8 million last year.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We closed 2025 at a strong footing, and the business momentum continued in the first quarter of the year. However, later in the quarter, the region faced heightened geopolitical tensions, and our focus changed to maintaining operational resilience and safety of our staff. With the support of our parent, Bank ABC, we remained fully operational, servicing our clients seamlessly and keeping normal business operations.

Our first quarter results show resilient performance with total operating income after profit on murabaha and other payables and before attribution to quasi-equity increasing by 3.2% as compared to the same period in 2025. However, our net profit reduced by almost 36%, in comparison to first quarter 2025, mainly on account of prudent provisioning, keeping in view the current macro-economic environment as well as one-off recovery recorded in Q1, 2025.

Moving ahead into the second quarter, we remain cautious and focused on maintaining our operational resilience and keeping our balance sheet healthy. Providing seamless services to our clients and well-being of our staff remain our key priorities in these uncertain times”.

Business Performance (three-months period):

• Net profit for the first quarter was US$9.3 million compared to US$14.4 million reported in the first quarter of last year.
• Allowances for credit losses for the first quarter were a charge of US$2.9 million, compared to a reversal of US$2.3 million in the same period of last year.
• Operating expenses were US$2.7 million, compared to US$2.8 million for the same period of last year.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$3.826 billion as of March 31, 2026, compared to US$3.274 billion at 2025 year-end.
• Investments were at US$1.498 billion, compared to US$1.510 billion at 2025 year-end.
• Murabaha receivables, Ijarah and Musharaka investment were at US$2.279 billion, compared to US$1.700 billion at 2025 year-end.
• Shareholders’ equity on March 31, 2026, stood at US$341 million, compared to US$383 million at 2025 year-end.
• The bank’s capital base remains strong with a capital adequacy ratio of 30.16%, predominantly Tier 1, which totalled 29.66%.

 

Hammad Hassan​
Managing Director of Bank ABC Islamic​​