Bank ABC (Arab Banking Corporation) has reported a net profit of $165 million for the first nine months down 19% compared to $204 million last year due to the decline to higher expected credit loss (ECL) charges, reflecting a conservative approach amid the geopolitical crisis.
During the period, the regional operating environment was shaped by heightened geopolitical uncertainty, volatility in energy markets, disruptions to trade flows and supply chains, said Bank ABC in its statement.
Earnings per share for the nine-month period stood at $0.045, compared with $0.060 a year earlier.
Against this backdrop, the Bank’s broad geographical footprint and diversified business model helped sustain business momentum and support the resilience of its financial performance.
The moderation to net profit primarily resulted from higher loan provisioning charges, reflecting the conservative approach adopted to counter challenging external market conditions.
The Bahraini bank said its total operating income rose 5% year-on-year to $1.065 billion, compared with $1.019 billion in the corresponding period of 2025, supported by performance across its business operations.
This reflected disciplined execution across the franchise, while compensating for the continuing external market challenges. The Group’s funding profile remained strong, while it continued to maintain healthy capital and liquidity buffers, it stated.
On the key performance, Bank ABC's Group Chairman Naji Belgasem said: “The operating environment remains challenging, with continuing geopolitical uncertainty across the region weighing on economic activity. Against this backdrop, Bank ABC has continued to demonstrate the resilience of its franchise and the strength of its diversified business model. The Group maintained good overall business momentum while remaining prudent in its approach to risk and preserving a strong balance sheet.”
“The resilience demonstrated through these conditions reinforces our confidence in the Group’s capabilities and its ability to navigate uncertainty while continuing to build the franchise. We remain focused on creating sustainable long-term value for our shareholders,” he stated.
On its third quarter results, the Bahraini bank said it had reported a 4% year-on-year increase in its net profit attributable to shareholders of the parent which rose to $54 million, compared with $52 million in the same period last year, supported by growth in core income and stable operating expenses and cost of credit.
The earnings per share rose to $0.015 from $0.014 a year earlier, while its total operating income increased 4% to $368 million from $353 million in the third quarter of 2025.
However, total comprehensive income attributable to shareholders of the parent fell 91% to $12 million from $132 million a year earlier, reflecting adverse currency movements in the Brazilian real and Egyptian pound against the US dollar, as well as negative fair value adjustments on securities amid lower market prices.
Total comprehensive income declined 73% to $104 million from $385 million in the same period of 2025, due to lower net profit, currency movements and negative fair value adjustments on securities.
According to Bank ABC, the equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the nine-month period stood at $4.711 billion compared to $4.718 billion reported at the 2025 year-end, a marginal drop after absorbing the impact of dividend payments and adverse movement in foreign currency translation reserves.
Its total assets stood at $51.1 billion at the end of the period, as compared to $49.9 billion reported at the 2025 year-end, an increase of 2% driven by core business growth in the loan portfolio, FX movements, besides balance sheet optimization and portfolio management actions.-TradeArabia News Service
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