​​​​​​​​​Bank ABC Islamic reports strong Q1 2025 net profit of US$ 14.4 million

Manama, Bahrain:​ Bank ABC Islamic - today announced a robust financial result for the first quarter of 2025:

reporting a net profit of US$ 14.4 million, a 33.7% increase compared to US$ 10.8 million for the same period last year. This growth was achieved at the back of stable core business, effective cost management, and steady cost of credit. Total assets reached US$ 3.0 billion, reflecting a healthy balance sheet position​.

Key Performance Highlights

• Net profit of US$14.4 million, 33.7% 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$44.4 million, 2.9% higher than the same period last year, while net income attributable to quasi-equity increased by 11.7%.

• Operating expenses were US$2.8 million, 58.2% lower compared to US$6.7 million for last year.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We have had a solid start to 2025. Our core income held steady year-on-year basis, while tighter cost discipline and lower credit charges translated into impressive bottom-line growth. Activity in capital markets was particularly strong, with the Bank leading several high-profile Sukuk mandates.” ​

Bank ABC Islamic’ s strong performance and client-centric innovation have earned it notable recognition. The Bank was named Best Islamic Corporate Bank in Bahrain 2024 and Best Islamic Digital Offering by an Islamic Bank in 2024 by Islamic Finance News (IFN). Additionally, several of the Bank’s landmark transactions were recognised for their innovation and impact, including AerCap Holdings’ US$500 million sukuk, which was awarded both the Most Innovative Deal of the Year and Sukuk Deal of the Year. The Bank also led the Bahrain Deal of the Year 2024 for Bahrain Steel US$450 million ESG financing facility, and structured Oman Telecommunications Company US$500 million Sukuk, which received both the Ijarah Deal of the Year and Oman Deal of the Year accolades.

“These awards are a testament to the strength of our product offering, structuring experties and client engagement across our core markets” added Mr. Hassan, “Despite an uncertain regional and global macroeconomic backdrop, we remain cautiously optimistic of the business environment for rest of the year.”​​

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

Business Performance (three-months period):

• Net profit for the first quarter was US$14.4 million compared to US$10.8 million reported in the first quarter of last year.

• Allowances for credit losses for the period were a write back of US$2.3 million compared to a charge of US$1.6 million reported during the same period last year.

• ​Operating expenses were US$2.8 million, compared to US$6.7 million for the same period of last year. Adjusting for exceptional charge of US$4.0 million last year, expenses were 4.1% higher compared to quarter one 2024.

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$3.042 billion as of March 31, 2025, compared to US$2.865 billion at 2024 year-end.

• ​Investments were at US$1.2 billion, compared to US$1.3 billion at 2024 year-end.

• Murabaha receivables, Ijarah and Musharaka financing were at US$1,765 million, compared to US$1,550 million at 2024 year-end.

• Shareholders’ equity on March 31, 2025, stood at US$372 million, compared to US$364 million at 2024 year-end.

• ​​The bank’s capital base remains very strong with a capital adequacy ratio of 39.7%, predominantly Tier 1, which totalled 38.9%.
  

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