Bahrain-based Bank ABC has reported a 27% decline in its net profit for the first half which fell to $111 million from $152 million a year earlier, hurt by higher provisions amid a challenging macroeconomic and geopolitical environment.
Announcing its financial results for the Q2, ABC said its operating profit remained broadly stable, supported by 5% growth in core business revenue and disciplined cost management, the bank said.
The Bahrain-based bank said the higher provision charge reflected prudent expected credit loss provisioning in response to prevailing economic conditions, while the absence of one-off recoveries recognised in the previous year also weighed on earnings.
Despite these unusual operating conditions, the Group delivered resilient underlying operating performance, supported by the strength of its diversified footprint.
Underlying this, the Group’s Operating Profit performance remained broadly in line YoY, driven by a core business revenue growth of 5% YoY, and through disciplined cost management.
The reduction in Net Profit was primarily driven by a higher provision charge compared with the prior year, reflecting prudent Expected Credit Loss (ECL) provisioning considering the prevailing macroeconomic environment, together with the absence of one-off recoveries recognised in the previous year.
Capital and liquidity ratios remained robust and comfortably above regulatory requirements.
On the second-quarter results, ABC Bank said its net profit fell 22% to $59 million from $76 million a year earlier, mainly due to higher provisions. Total operating income for the quarter rose 4% to $353 million from $338 million.
Total comprehensive income attributable to shareholders rose 67% to $165 million in the second quarter, driven mainly by positive fair-value movements in the bank's securities portfolio, which recovered from a decline in the first quarter. The gains were partly offset by foreign-exchange movements in the Brazilian real and lower profit.
Bank ABC said capital and liquidity ratios remained robust and above regulatory requirements, while it continued to strengthen risk management and monitor credit, market and liquidity risks.
The geopolitical tensions and disruptions to trade flows and supply chains remained key external risks for its operations across the region, it added.
On the results, Chairman Naji Belgasem said: "While global uncertainty remains elevated and has impacted certain of our key markets, business activity proved resilient across other parts of the Group. We remain focused on maintaining operational stability and prudent risk management."
"As we enter the second half of 2026, Bank ABC is well positioned, underpinned by its strong fundamentals and well-diversified business model, to continue serving as a trusted financial partner to our customers. The Group remains fundamentally strong, with a strong capital position and healthy liquidity ratios to safeguard long-term shareholder value," he added.
ABC Bank remained focused on operational stability and prudent risk management, adding that its diversified business model and strong capital and liquidity positions supported its ability to serve customers and protect long-term shareholder value.-TradeArabia News Service
