Bank ABC posts robust H1 growth; net profit up 24pc
MANAMA, August 11, 2024
Bahrain-based Arab Banking Corporation (Bank ABC) has announced that it continues to deliver strong performance for the first half with an H1 net profit of $150 million, up 24% growth over last year's figure of $121 million driven by a combination of core business growth across many markets, higher average asset volumes and steady cost of credit.
Announcing the results for the six-month period ended June 30, 2024, Bank ABC said its total operating income surged by 10% to hit $674 million over last year's figure of $611 million, reflecting broad-based growth across almost all the core markets.
The earnings per share for the six-month period stood at $0.046, compared to $0.036 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was affected by the devaluation of Egyptian pound and Brazilian Real against the US dollar.
Net impact of these on the total comprehensive income was a negative of $56 million, compared to a positive $109 million reported during the same period last year (when the currencies remained broadly stable).
This robust performance was mainly driven by a 10% increase year on year (YOY) in total operating income from core business growth and higher average asset volumes, after absorbing the impact of EGP depreciation, underpinned by both operating expenses and cost of credit being well controlled.
The group’s balance sheet strength was also maintained, with capital and liquidity ratios at robust levels, while total assets reached $44 billion, it stated.
On its major Q2 highlights, ABC said its consolidated net profit attributable to the shareholders of the parent, for the period stood at $75 million, 23% higher compared to $61 million reported for the same period last year.
The group's earnings per share for the period stood at $0.024, compared to $0.020 in the same period last year.
The bank's total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of Brazilian Real against the US dollar, and changes in the fair valuations of our bond portfolio during the quarter.
Net effect of these on total comprehensive income was a negative of $28 million compared to a positive $110 million, reported for the same period last year.
According to the bank, the total operating income for Q2 stood at $331 million, 6% higher compared to 312 million reported for the same period last year.
Group Chairman Saddek Omar El Kaber said: "Our group continued its excellent performance throughout the first half of the year, which reflects its broad- based business model that leverages market opportunities across the group’s international franchise."
El Kaber pointed out that the group’s balance sheet remained healthy and robust, with strong capital and liquidity ratios.
"The accelerated implementation of our strategy positions the Group for additional growth momentum during the rest of the year, as we further anchor our position as “Mena's International Bank of the Future," he stated.
Bank ABC said the equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,173 million, compared to $4,300 million last year, down 3% after absorbing dividend payments and the impact of EGP and BRL devaluation.
The total assets stood at $44.3 billion at the end of the period, as compared to $43.9 billion reported at the 2023 year-end, thus posting an increase of 1% driven by core business and growth, balance sheet optimization and portfolio management actions.-TradeArabia News Service
