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Saddek Omar El Kaber

Bank ABC returns to net profit of $30m in Q1

MANAMA, May 13, 2021

Bank ABC (Arab Banking Corporation) said that its consolidated net profit attributable to the shareholders of the parent for the first quarter (Q1) of 2021 was $30 million, compared to a net loss of $62 million reported for Q1 2020.

The Group started the year on a solid and profitable footing, recovering from the impact of 2020 and carefully navigating post-Covid 19 transitional operating conditions, still characterised by episodical lockdowns and a constrained work environment across our markets.

Bank ABC continues to support its clients, staff and communities on the path to recovery whilst pursuing its growth and digital transformation plans.  Notably, the Group’s acquisition of BLOM Bank Egypt S.A.E, signed in January, is progressing well and is in the advanced stages of regulatory approval and closing processes, a bank statement said.  

Q1 2021 business performance

•    Earnings per share for the period was $0.01, compared to negative $0.02 for the same period last year.
•    Total comprehensive loss attributable to the shareholders of the parent was $16 million, impacted by foreign exchange translation in foreign subsidiaries, compared to $534 million reported for the same period last year.
•    On a headline basis, Total Operating Income was $182 million, 78% higher compared to $102 million reported for the same period last year. On an underlying basis*, Total Operating Income was at $205 million for the period, compared to $200 million for the same period last year.
•    Net interest income was $122 million, 11% lower against $137 million reported for the same period last year, after absorbing the impact of declining interest rates compared to the same period last year.
•    Operating expenses were at $125 million, 6% lower than $133 million for the same period last year, continuing to benefit from the cost optimisation initiatives during last year, while reprioritising the continuing investments into the Group’s digital transformation and strategic initiatives.
•    On an underlying basis, the Group achieved a Net Operating Profit of $76 million for the quarter, 13% higher compared to $67 million in Q1 2020.
•    Impairment charges (ECL) for the period were $20 million compared to $120 million reported for the same period last year, with reversal of economic outlook from the lows last year flowing through the expected loss estimates under IFRS 9, and without the major impact of regional fraud events such as NMC, that created abnormally elevated ECL charges during 2020.

Bank ABC's Group Chairman Saddek Omar El Kaber commented: “We are pleased to see the Group’s return to a more usual level of profitability, reaffirming the strong underlying fundamentals of the Group’s diversified franchise.  Despite a more challenging transition from the pandemic than previously expected, Bank ABC continues to operate strongly, adapting to the “new normal” and steering effectively through this prolonged challenge.” – TradeArabia News Service
 




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