Manama: Arab Banking Corporation (ABC) has reported a first quarter net profit attributable to the shareholders of the parent, of US$52 million.
The first quarter of 2026 was characterised by heightened geopolitical tensions across the Middle East, contributing to increased uncertainty in economic activity and market conditions. This evolving landscape had a varying degree of impact on business momentum across the markets in which the Group operates.
During this period of heightened uncertainty, the Group remained firmly focused on operational resilience and continuity, ensuring uninterrupted delivery of services to clients, safeguarding the wellbeing of its employees, and maintaining normal business operations. The Bank also continued to proactively strengthen its risk management and monitor frameworks to navigate potential credit, market and liquidity risks arising from the external environment.
Against this backdrop, Bank ABC delivered a resilient start to 2026, reporting a first quarter net profit attributable to the shareholders of the parent of US$52 million. This represents a reduction of 32% year on year (YoY). Underlying this, the Group’s operating profit performance remained steady, driven by a diversified headline revenue growth of 5% YoY, and disciplined cost management. However, the net profit reduction primarily reflected a higher year on year provision charge, increased by prudent Expected Credit Loss (ECL) provisioning, partially in response to the prevailing macroeconomic environment, as well as the absence of one-off recoveries recorded last year. The Group continued to maintain strong capital and liquidity ratios, well more than regulatory requirements.
Bank ABC’s commitment to business excellence, client centricity and innovation leadership continued to receive strong regional and international recognition. Recent accolades included ‘Best Trade Finance Provider in the Middle East’ and the ‘World’s Best Financial Innovation Lab’ Award for ABC Labs by Global Finance. In addition, Bank ABC Islamic was recognised as ‘Best Islamic Bank in Bahrain’ and ‘Most Innovative Bank in Bahrain,’ among eight awards by the IFN Best Banks Poll 2025, reinforcing the Group’s leadership across conventional, Islamic and digital banking.
Looking ahead, the Group enters the second quarter of 2026 with a cautious and disciplined approach, continuing to closely monitor regional geopolitical developments and their potential economic implications, remaining focused on balance sheet strength, risk discipline and supporting its clients across core markets.
“We entered 2026 with a healthy balance sheet and robust transaction pipelines. The first quarter unfolded against a backdrop of heightened geopolitical and macroeconomic uncertainty. In this environment, Bank ABC remained focused on maintaining operational stability and prudent risk management. While performance was impacted by prudent provisioning in response to the external environment, the underlying fundamentals of the Group remain solid. The Group’s diversified business model, strong capital position and robust risk culture provide a solid foundation as we continue to support our clients, ensure our staff safety and well-being and safeguard long term shareholder value,” Naji Issa Belgasem, Bank ABC Group Chairman, said. Bank ABC is a leading player in the region’s banking industry, with a presence in fifteen countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic Finance, across Transaction Banking, Project and Structured Finance, Capital Markets, Financial Markets, Real Estate Finance to corporates and financial institutions. It also provides consumer banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan
