Bank ABC (Arab Banking Corporation) today delivered a resilient start to 2026, reporting a first quarter net profit attributable to the shareholders of the parent of $52 million.
This represents a reduction of 32% year on year (YoY). Underlying this, the group’s operating profit performance remained steady, driven by a diversified headline revenue growth of 5% YoY, and disciplined cost management.
The first quarter of 2026 was characterised by heightened geopolitical tensions across the Middle East, contributing to increased uncertainty in economic activity and market conditions. This evolving landscape had a varying degree of impact on business momentum across the markets in which the group operates, the bank said.
During this period of heightened uncertainty, the group remained firmly focused on operational resilience and continuity, ensuring uninterrupted delivery of services to clients, safeguarding the wellbeing of its employees, and maintaining normal business operations. The Bank also continued to proactively strengthen its risk management and monitoring frameworks to navigate potential The net profit reduction primarily reflected a higher year on year provision charge, increased by prudent Expected Credit Loss (ECL) provisioning, partially in response to the prevailing macroeconomic environment, as well as the absence of one-off recoveries recorded last year. The group continued to maintain strong capital and liquidity ratios, well in excess of regulatory requirements, it said.
Looking ahead, the group enters the second quarter of 2026 with a cautious and disciplined approach, continuing to closely monitor regional geopolitical developments and their potential economic implications, remaining focused on balance sheet strength, risk discipline and supporting its clients across core markets, it added.
Bank ABC Group Chairman Naji Issa Belgasem said: “We entered 2026 with a healthy balance sheet and robust transaction pipelines. The first quarter unfolded against a backdrop of heightened geopolitical and macroeconomic uncertainty. In this environment, Bank ABC remained focused on maintaining operational stability and prudent risk management. While performance was impacted by prudent provisioning in response to the external environment, the underlying fundamentals of the Group remain solid. The group’s diversified business model, strong capital position and robust risk culture provide a solid foundation as we continue to support our clients, ensure our staff safety and well-being and safeguard long term shareholder value.”
Detailed summary of the Financial Results is explained below:
Q1 2026 Performance Highlights
* Consolidated net profit attributable to the shareholders of the parent, for Q1 2026 was $52 million, a reduction of 32% compared to $76 million reported for the same period last year, mainly due to higher provision charge given the prevalent geopolitical uncertainties.
* Earnings per share for the period was $0.014, compared to $0.022 in the same period last year.
* Total comprehensive income attributable to the shareholders of the parent was negative $73 million in Q1 2026 as compared to a positive $154 million during the same period last year, largely reflecting adverse fair value movements in the Bank’s securities portfolio resulting from global and regional market volatility.
* Total Operating Income for Q1 2026 was $344 million; a 5% growth compared to US$328 million reported for the same period last year.
Balance Sheet
* Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was $4,546 million, compared to $4,718 million reported at YE25, after absorbing the impact of dividend payment.
* Total assets stood at $47.2 billion as at the end of Q1 2026, compared to $49.9 billion at the 2025 year-end, a 6% reduction, reflecting short-term asset and liability management fluctuations. The bank’s lending portfolio showed healthy and diversified growth with loans and advances increasing by 2% over the first quarter.
* Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 15.0% of which CET 1 at 12.7%. LCR and NSFR at 311% and 127% respectively. – TradeArabia News Service
