​Manama, Bahrain: Bank ABC Islamic - today announces its results for the year ending 31 December 2022:

The Bank delivered robust performance in 2022, closing the year with net profit of US$38.8 million, representing 29.8% improvement year-on-year from US$29.9 million in 2021. Net profitability as well as Total operating income saw double digit growth compared to last year. High profit rate environment and stable performance of client business resulted in 15.3% growth in Total operating income compared to last year. The Bank performed very well in 2022 and has been recognised as the MENA Islamic Finance Bank of the year by MEED, for its innovative approach to Shari’a compliant banking and consistent performance with a clear client-centric focus.

Recognizing the Bank’s performance, the Islamic Rating Agency (IIRA) reaffirmed the rating of Bank ABC Islamic at A-/A-2 on the international scale and A+(bh)/A-1(bh) on the national scale with a Stable outlook, based on the results of December 2021.

Q4 2022 Business Performance:

• Net profit for the fourth quarter was US$9.1 million compared to US$3.2 million reported in the fourth quarter of last year.
• Net operating income before credit losses was US$14.0 million compared to US$8.8 million for the same period of last year.
• Allowances for credit losses for the period were a charge of US$2.4 million compared to US$2.0 million reported during the same period last year.
• Operating expenses were US$2.4 million, compared to US$3.5 million for the same period of last year.
  
  

Full Year 2022 Financial results:

• Net profit of US$ 38.8 million, 29.8 % higher than last year.
• Net operating income before credit losses of US$46.1 million, 15.3% higher than US$ 40.0 million reported last year.
• Allowances for credit losses for the year were a claw back of US$1.7 million compared to US$1.1 million charge reported during the same period last year.
• Operating expenses of US$8.6 million were at same level of last year. ​
  
  

Balance Sheet:

• ABC Islamic Bank’s total assets stood at US$2.415 billion as of December 31, 2022, compared to US$2.332 billion at 2021 year-end.
• Investments were at US$882 million, compared to US$852 million at 2021 year-end.
• Murabaha receivables and Ijarah were at US$1,446 million, compared to US$1,420 million at 2021 year-end.
• Shareholders’ equity on December 31, 2022, stood at US$330 million, compared to US$297 million at 2021 year-end, 11.3%.
• The bank’s capital base remains strong with a capital adequacy ratio of 40.9%, predominantly Tier 1, which totalled 39.9%. 

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We are pleased with the Bank’s performance in 2022.  Steady customer business, effective utilization of the balance sheet resulting in healthy income from asset distribution and higher profit rate environment contributed to a year-on-year increase in total operating income of 15.3%. Effective cost management and an improved credit environment further enhanced the net profitability for the Bank resulting in 29.8% increase in profit compared to last year. We are cautiously optimistic on the outlook for 2023 in the backdrop of an inflationary and higher rate environment.”