Manama: Bank ABC (Arab Banking Corporation B.S.C.) has announced a net profit of $30million, for the Q1 202, attributable to shareholders.
The Group started the year on a solid and profitable footing, recovering from the impact of 2020 and carefully navigating post-COVID 19 transitional operating conditions, still characterised by episodically lockdowns and a constrained work environment across our markets. Bank ABC continues to support its clients, staff and communities on the path to recovery whilst pursuing its growth and digital transformation plans. Notably, the Group’s acquisition of BLOM Bank Egypt S.A.E, signed in January, is progressing well and is in the advanced stages of regulatory approval and closing processes.
“We are pleased to see the Group’s return to a more usual level of profitability, reaffirming the strong underlying fundamentals of the Group’s diversified franchise. Despite a more challenging transition from the pandemic than previously expected, Bank ABC continues to operate strongly, adapting to the “new normal” and steering effectively through this prolonged challenge,” Bank Saddek Omar El Kaber, Bank ABC’s Group Chairman, said.
Bank in a statement says nnet profit of $30 million with cost of risk returning to pre-pandemic levels, reflecting better economic outlook, after the Bank absorbed the impact of regional fraud events experienced in 2020.
“Total Operating Income significantly increased on a headline basis, and on an underlying basis in line with previous year’s levels, despite lower interest rates and the challenged economic conditions.
“Costs remain lower than prior year, comparatives reflecting rationalisation actions, greater discipline and cost control while continuing investment into our strategic priorities on transforming the Bank.
“Balance sheet remains strong with capital and liquidity ratios well above the regulatory requirements: Group CET 1 Ratio is 16.6%, LCR 200% and NSFR 124%.
“Our payment and digital retail banking capabilities gain steady traction. A new management team have taken over in Arab Financial Services to steer the next phase of its transformation. ila Bank’s customers and deposits have been growing from strength-to-strength.”
“Overall asset portfolio quality remains solid with sound credit underwriting standards evidenced by client-level stress-testing reviews.”
