Manama, Bahrain: Bank ABC (Arab Banking Corporation B.S.C.) - Bahrain Bourse Trading Code “ABC” - today announces its results for the third quarter and nine months year to date of 2023.
Bank ABC continued its strong performance, driven by strong underlying business growth combined with a rising interest rate environment. Total Operating Income at US$ 943 million, grew by 19% year-on-year (YOY). Capital and liquidity ratios remained at strong levels. The Bank has recorded a 61% increase YOY in the net profits attributable to its Shareholders, which stands at US$183 million.
During this period, Bank ABC Group also won several distinguished awards recognising its commitment to delivering a new kind of banking experience for corporates and individuals. Bank ABC was declared the ‘Best Corporate Bank in Bahrain’ by Euromoney Awards for Excellence, which commended the Bank for its impressive digital deployments and role in headline deals. Moreover, the Bank’s digital mobile-only retail arm, ila Bank, won the ‘Best Consumer Digital Bank’ title for the third consecutive year, winning all six awards for Bahrain by Global Finance’s World’s Best Consumer Digital Bank Awards 2023.
Bank ABC's Group Chairman, Mr. Saddek Omar El Kaber remarked, “We are extremely pleased with the Group’s excellent performance this year, with our refreshed strategy execution gaining firm traction. The Group’s balance sheet remains healthy and robust, with strong capital and liquidity ratios. We look forward to continuing this great momentum as we steadily progress on our strategic journey to build our “bank of the future.”
Detailed summary of the Financial Results is explained below:
Q3 2023 Performance Highlights
- Consolidated net profit attributable to the shareholders of the parent, for Q3 2023 was US$62 million, 41% higher compared to US$44 million reported for the same period last year. Quarterly performance broadly tracked the year-to-date trends as explained below.
- Earnings per share for the period was US$0.02, compared to US$0.01 in the same period last year.
- Total comprehensive income attributable to the shareholders of the parent was a profit of US$65 million compared to a loss of US$6 million, reported for the same period last year.
Nine months 2023 Performance Highlights
- Consolidated net profit attributable to the shareholders of the parent, for the first nine months of 2023 was US$183 million, a growth of 61% compared to US$114 million reported for the same period last year, driven by a combination of strong core business growth across many markets and effective management of interest rate exposures in a rising interest rate environment.
- Earnings per share for the period was US$0.06, compared to US$0.04 in the same period last year.
- Total comprehensive income attributable to the shareholders of the parent was a positive US$174 million, compared to a loss of US$109 million reported in 2022. Last year, the loss arose due to changes in fair valuations of our bond portfolio and net impact of foreign exchange translation in overseas subsidiaries. However, in the current period these reduced significantly on a net basis with the strengthening of the Brazilian Real and positive movements in the fair market valuations of our bond portfolio offset the impact from depreciation of the Egyptian pound against the US$.
- Total Operating Income was US$943 million, 19% higher compared to the US$791 million reported during the same period last year, reflecting the strong growth in underlying businesses and interest rates.
- Operating expenses at US$554 million was higher by 12% compared to US$494 million, during the same period last year, resulting from a combination of strategic investments and transformation initiatives, supporting business growth and general inflationary increases. Given the TOI growth of 19% YOY, the Group, therefore, has positive income/cost ‘jaws’ of 7% with a consequent improvement in the cost/income ratio. The Group remains focused on disciplined cost control while continuing to invest in key strategic digital initiatives to build our ‘bank of the future’.
- Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was US$4,211 million, compared to US$4,095 million reported at the 2022 year-end, 3% higher primarily from incremental profits after dividends paid.
- Total assets stood at 41.3 billion at the end of the period, as compared to US$36.6 billion at the 2022 year-end, an increase of 13% driven by business growth and portfolio management actions.
- Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 15.4%, of which CET1 at 13.7%. LCR and NSFR at 247% and 122% respectively.
Bank ABC is a leading player in the region’s banking industry, with presence in 15 countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured finance, Capital Markets, Financial Markets, Real Estate finance to corporates and financial institutions. It also provides retail banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan.
The full set of financial statements and the press release are available on the Bahrain Bourse and Bank ABC websites. Further details are provided in the Investor Highlights Presentation published on Bank ABC’s website.
Bank ABC will be hosting a virtual Investors call on 21 November 2023 to discuss the quarterly earnings update for the period ended September 2023. Further details are available on the Bank’s website:
Mr. Saddek Omar El Kaber
Bank ABC's Group Chairman