Manama: Bank ABC Islamic reported total operating income after profit on murabaha and other payables and before attribution to quasi-equity of US$92.5 million, up 3.2% from the same period last year, while net income attributable to quasi-equity increased by 7.9%. Net profit, however, declined by 40.3% to US$16.1 million, compared with US$26.9 million in the prior year period, primarily due to a charge for expected credit losses versus a reversal in the same period last year.
Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$92.5 million, 3.2% higher than the same period last year, while net income attributable to quasi-equity increased by 7.9%. Operating expenses were US$5.1 million, same as corresponding period last year.
“The region continues to face heightened geopolitical tensions, and our focus remains on maintaining operational resilience and the safety of our staff. With the support of our parent, Bank ABC, we have remained fully operational throughout the crisis, servicing our clients seamlessly and maintaining normal business operations,” Hammad Hassan, Managing Director of Bank ABC Islamic said.
“Our half-year results show resilient top-line performance; however, our net profit reduced by 40%, in comparison to the same period 2025, mainly due to an increase in expected credit losses, compared with a provisioning reversal in the same period last year. We remain conservative in our approach towards provisioning, particularly in light of the current macro-economic environment. Our balance sheet remains healthy with strong capital ratios.
For rest of the year, our focus will remain on maintaining our operational resilience, keeping our balance sheet healthy, and providing seamless services to our clients, who are also being adversely affected by the current circumstances. Supply chain disruption continues to impact many businesses in our region as well as globally. Maintaining the well-being of our staff also remains our key priority in these uncertain times. The bank’s capital base remains very strong with a capital adequacy ratio of 33.1%, predominantly Tier 1, which totalled 32.6%.
