Bahrain-based Bank ABC Islamic has posted a net profit of $10.4 million in the first quarter (Q1) of the year compared to $5.8 million reported in Q1 2020, marking an increase of 79.3% after the bank absorbed the fraud related losses in 2020.

Total operating income of $11.7 Million, 13% lower than the same period 2020 mainly on account of low profit rate environment and slightly lower fee income, a bank statement said.

Total operating expenses 13.6% lower than same period last year as a result of cost rationalization programs and staff / client activity not having reverted to pre-pandemic level, while balance sheet remains strong with capital adequacy ratio of 40.7%.  

ABC Islamic Bank’s total assets stood at $1.906 billion as of March 31, 2021 compared to $2.314 billion at 2020 year-end.

Shareholders’ equity at March 31, 2021stood at $303 million, compared to $293 million at 2020 year-end.

The bank’s capital base remains very strong with a capital adequacy ratio of 40.7%, predominantly Tier 1, which totalled 39.7%.

Hammad Hassan, Managing Director of Bank ABC Islamic, said: “The first quarter result is encouraging and reflective of a positive start to the year having been impacted by the combined effect of fraud related losses in 2020 and the pandemic.

“The operating environment is still not back to the pre-pandemic times. However, there is positive hope for recovery after the first half of the year albeit dependent on completion of successful vaccination programs in the region and subject to no further unexpected breakouts of the virus.” – TradeArabia News Service