Bank ABC Islamic achieved 13% growth year-on-year in 2024 with net profit of $52.3 million compared to $46.3 million for the previous year.

 

The increase in profitability was driven by core business growth and higher average asset volumes. The balance sheet remained healthy, maintaining strong capital ratio, the bank said. 

 

Other key performance highlights

* Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at $178.7 million, 20% higher than 2023, while net income attributable to quasi-equity increased by 23.8%.  

* Operating expenses of $13.8 million, 26.7% higher compared to $10.9 million for 2023. Adjusting for the extraordinary one-off charge, expenses were 5.6% higher than 2023.

* The bank’s capital base remains very strong with a capital adequacy ratio of 45.9%.

* Allowances for credit losses for the year were a charge of $1.4 million compared to $1.8 million reported 2023.

 

Hammad Hassan, Managing Director of Bank ABC Islamic, said: “We are extremely pleased to announce a solid performance for 2024, with a net profit of $52.3 million. This 13% year-on-year increase in net profitability, despite challenging market and economic environment, is reflective of the Bank’s commitment to sustained growth and resilience.

 

“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. This has been recognised by the market and the bank has received several awards during the year, notably Best Islamic Financial Institution in Bahrain by the prestigious Global Finance, second consecutive year in a row.  

 

“This could not have been possible without the tireless efforts of a dedicated team, the support of its shareholder, Bank ABC and with the guidance from the Board of Bank ABC Islamic. I am thankful to the hardworking team of Bank ABC Islamic, as well as to the Board and the shareholders. On behalf of the Board of Bank ABC Islamic Bank, I would like to take this opportunity to thank the Shariah Supervisory Board of the Bank and Central Bank of Bahrain for their continued guidance and support,” he said.

 

“We look forward to starting the new year with renewed energy and vigour and with cautious optimism of an even better performance in 2025,” he added.

 

Business performance for Q4

* Net profit for the fourth quarter was $14.4 million compared to $11.2 million reported in the fourth quarter of 2023.

* Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity for the fourth quarter stood at $47.4 million, 23.4% higher than fourth quarter of 2023, while net income attributable to quasi-equity increased by 34% compared to the same period of previous year.  

* Operating expenses were $2.6 million, compared to $2.5 million for the same period of 2023.

 

Balance Sheet:

* ABC Islamic Bank’s total assets stood at $2.865 billion as of December 31, 2024, compared to $2.501 billion at 2023 year-end.

* Investments were at $1.3 billion, compared to $809 million at 2023 year-end.

* Murabaha receivables, Ijarah and Musharaka investment were at $1,550 million, compared to $1,566 million at 2023 year-end.

* Shareholders’ equity on December 31, 2024, stood at $364 million, compared to $328 million at 2023 year-end.

* The bank’s capital base remains very strong with a capital adequacy ratio of 45.9%, predominantly Tier 1, which totalled 44.8%. -TradeArabia News Service