Manama,
Bahrain: Bank ABC Islamic has announced its financial results
for the year ending 31 December 2019, which recorded net profit of US$37.3
million. The total operating income as well as net profitability has seen
double digit growth as compared to 2018. Below are highlights of the Bank’s
financial results.
Q4 Financial Results (three-month period)
- Net
profit for the fourth quarter was US$8.5 million, 26.6% higher than the profit
of US$6.7 million reported in the last quarter of 2018 year-end.
- Total
operating income rose to US$12.1 million, 7.7% higher compared to US$11.2 million
reported for the same period last year.
- Operating
expenses were US$2.8 million, compared to US$1.9 million for the same period of
last year.
- Allowances
for credit losses for last quarter of US$0.7 million were lower by 73.6% when
compared with the last quarter of the previous year of US$2.5 million, demonstrating
continuing improvement in credit quality.
FY 2019 Financial
Results
- Net
profit for the year 2019 was US$37.3 million, 16.5% higher compared to US$32 million
recorded for the previous year.
- Total
operating income rose to US$46.7 million, 10.4% higher compared to US$42.3 million
reported for last year.
- Operating
expenses were US$8.5 million, 27.5% higher compared to US$6.6 million for last
year. When adjusted for one-off reversals in 2018, the expenses for 2019 grew by
12.9%.
- Allowances
for credit losses for the year were US$0.5 million, 85.3% lower
compared to US$3.2 million reported during last year, which as noted above, demonstrating
continuing improvement in credit quality.
Balance Sheet:
- ABC
Islamic Bank’s total assets stood at US$2.079 billion at the end of 2019,
compared to US$1.745 billion at the 2018 year-end.
- Shareholders’
equity at 31 December 2019 stood at US$365 million, compared to US$352 million
at 2018 year-end.
- The
Bank’s capital base remains very strong with a capital adequacy ratio of 30%,
predominantly Tier 1, which totalled 29%.
Commenting on the
results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic, said, “With
the Grace of God, 2019 was another year of stellar performance for the Bank
despite persisting challenging market conditions. This is a reflection of a focused
approach towards building a credit worthy client base. Our efforts to servicing
existing clients by providing bespoke and innovative Shariah compliant solutions,
as well as proactive management and scrutiny over the credit portfolio is
paying off. We remain committed to our strategy with its core tenets of (a)
broadening and deepening our core franchise, (b) globalizing our capabilities
across the ABC Group, and (c) enhancing our global operating model. We move in
to 2020 with optimism whilst upholding the highest standards of Shariah
compliance in our operations.”
Hammad Hassan
Managing Director of Bank ABC Islamic