The Banking Executive Magazine - April 2025

Bank ABC Islamic Bank ABC Islamic REPORTS 33.7% RISE IN NET PROFIT TO $14.4MLN Bank ABC Islamic – announced a ro- bust financial result for the first quar- ter of 2025, reporting a net profit of $14.4 million, a 33.7% increase compared to $10.8 million for the same period last year. This growth was achieved at the back of stable core business, effec- tive cost management, and steady cost of credit. Total assets reached $3 billion, reflecting a healthy balance sheet position. KEY PERFORMANCE HIGHLIGHTS • Net profit of $14.4 million, 33.7% higher than same period last year. • Total Operating income after profit on murabaha and other payables and before attribution to quasi-eq- uity stood at $44.4 million, 2.9% higher than the same period last year, while net income attributable to quasi-equity increased by 11.7%. • Operating expenses were $2.8 mil- lion, 58.2% lower compared to $6.7 million for last year. Balance Sheet • ABC Islamic Bank’s total assets stood at $3.042 billion as of March 31, 2025, compared to $2.865 bil- lion at 2024 year-end. • Investments were at $1.2 billion, compared to $1.3 billion at 2024 year-end. • Murabaha receivables, Ijarah and Musharaka financing were at $1,765 million, compared to $1,550 million at 2024 year-end. • Shareholders’ equity on March 31, 2025, stood at $372 million, com- pared to $364 million at 2024 year-end. • The bank’s capital base remains very strong with a capital ade- quacy ratio of 39.7%, predomi- nantly Tier 1, which totalled 38.9%. Commenting on the results, Ham- mad Hassan, Managing Director of Bank ABC Islamic, said: “We have had a solid start to 2025. Our core income held steady year-on-year basis, while tighter cost discipline and lower credit charges translated into impressive bottom-line growth. Activity in capital markets was par- ticularly strong, with the Bank lead- ing several high-profile Sukuk mandates.” Bank ABC Islamic’ s strong perform- ance and client-centric innovation have earned it notable recognition. The Bank was named Best Islamic Corporate Bank in Bahrain 2024 and Best Islamic Digital Offering by an Is- lamic Bank in 2024 by Islamic Fi- nance News (IFN). Additionally, several of the Bank’s landmark trans- actions were recognised for their in- novation and impact, including AerCap Holdings’ US$500 million sukuk, which was awarded both the Most Innovative Deal of the Year and Sukuk Deal of the Year. The Bank also led the Bahrain Deal of the Year 2024 for Bahrain Steel US$450 mil- lion ESG financing facility, and struc- tured Oman Telecommunications Company US$500 million Sukuk, which received both the Ijarah Deal of the Year and Oman Deal of the Year accolades. “These awards are a testament to the strength of our product offering, structuring experties and client en- gagement across our core markets,” added Hassan. “Despite an uncertain regional and global macroeconomic backdrop, we remain cautiously op- timistic of the business environment for rest of the year.” - the BANKING EXECUTIVE 36 ISSUE 196 APRIL 2025