Bank ABC Islamic - today announces its results for the first quarter of 2022:
The Bank closed
the first quarter with net profit of US$ 8.8 Million, largely on track with the
expectations for Q1. The core banking business grew on a year-on-year basis as
we gradually emerge out from the impact of the Covid 19 pandemic. However, the
capital markets business witnessed subdued activity in the first quarter due to
rising profit rate environment as well as volatility in the market caused by
the geo-political situation. As the markets stabilize and investors and issuers
get used to the new higher rate environment, we expect the capital markets
business to pick up with new Sukuk issuances and Syndicated facilities.
- Net profit of US$ 8.8 million, 15.6 % lower than same period last year
- Total operating income of US$9.1 million, 22.5% lower than the same
- Total operating income and net profit variance from last year is mainly
attributable to subdued capital markets activity in the first quarter and one-off
higher income in Q1, 2021 from distribution of certain assets
- Balance sheet remains strong with capital adequacy ratio of 40.7%
Commenting on the
results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “We
started the year with the milder Omicron variant and as a result with lesser
restrictions, leading to business travel returning to normalcy. This will have
positive impact on new-to-bank customer acquisition, an important performance
metric for the business. We are largely on track with our expectations for performance
in 2022. With the improvement in macroeconomic credit environment and the
region benefiting from higher oil price, we remain cautiously optimistic about
business performance picking up pace during the coming months”.
- Net profit for the first quarter was US$8.8
million compared to US$10.4 million reported in the first quarter of last year.
- Total operating income was US$9.1 million compared
to US$ 11.7 million for the same period of last year.
- Allowances for
credit losses for the period were a write back of US$2 million compared to
US$0.7 million reported during the same period last year. The higher write back
was mainly due to improvement in macroeconomic environment in a post pandemic
- Operating expenses were US$2.1 million
compared to US$1.9 million for the same period of last year, with the business
returning to normalcy as compared to last year.
- ABC Islamic Bank’s total assets stood at US$2.285
billion as of March 31, 2022, compared to US$2.332 billion at 2021 year-end.
The balance sheet is expected to grow as we go further in the year, with the
expected improvement in capital markets business as well as overall client
- Shareholders’ equity at March 31, 2022, stood
at US$306 million, compared to US$297 million at 2021 year-end.
- The bank’s capital base remains very strong
with a capital adequacy ratio of 40.7%, predominantly Tier 1, which totalled 40%.
Managing Director of Bank ABC Islamic