Bank ABC Islamic posted a nine-month (9M) net profit of $37.8 million, 8% higher than $35.1 million for the same period last year. 

 

Total operating income after attribution to quasi-equity for the nine-month period ending September 30, 2024 stood at $51.5 million, 17% higher on a year-on-year basis. The growth in income is a result of healthy client business across corporate, institutional, and sovereign segments. The balance sheet remained healthy, maintaining strong capital ratio. 

 

Key performance highlights

Operating income after attribution to quasi-equity of $51.5 million, 17% higher than the same period in 2023.  Operating expenses of $11.3 million was 34% higher compared to $8.4 million for last year. 

 

The bank’s capital base remains very strong with a capital adequacy ratio of 40%. 

 

Hammad Hassan, Managing Director of Bank ABC Islamic, said: “We are pleased to announce a solid performance for the first nine months of 2024, with a net profit of $37.8 million. This 8% increase reflects our commitment to sustained growth and resilience in an evolving economic environment. 

 

“We have continued to strengthen our core business lines while making targeted investments in digital transformation to better serve our customers and adapt to their changing needs. As we move into the final quarter of 2024, we remain confident in our strategic direction. Our team will continue to focus on delivering value for our stakeholders and seizing new growth opportunities in the market.”

 

Business performance (three-month period)

Net profit for the third quarter was $12.8 million compared to $10.2 million reported in the third quarter of last year.

Operating income after attribution to quasi-equity of $15.7 million compared to $13.4 million for the same period of last year. Operating expenses were $2.2 million, compared to $2.4 million for the same period of last year.

 

Business performance (nine-month period)

Operating income after attribution to quasi-equity of $51.5 million, 17% higher than the same period in 2023.  

Allowances for credit losses for the period were a charge of $2.1 million compared to $0.3 million reported during the same period last year. Operating expenses of $11.3 million, 34% higher compared to $8.4 million for last year. Adjusting for the extraordinary one-off charge, expenses were 8% higher than previous period.

 

Balance sheet

ABC Islamic Bank’s total assets stood at $2.996 billion as of September 30, 2024, compared to $2.501 billion at 2023 year-end. Investments were at $1.2 billion, compared to $809 million at 2023 year-end.

 

Murabaha receivables, Ijarah and Musharaka financing were at $1,808 million, compared to $1,566 million at 2023 year-end. Shareholders’ equity on September 30, 2024, stood at $342 million, compared to $328 million at 2023 year-end.

 

The bank’s capital base remains very strong with a capital adequacy ratio of 40%, predominantly Tier 1, which totalled 39%.--TradeArabia News Service