Manama: Bank ABC (Arab Banking Corporation B.S.C.) has announced consolidated net profit of US$111million, attributable to the shareholders of the parent, for H1 2026 a decline of 27% compared to US$152 million reported for the same period last year, mainly due to a higher provision charge.
Earnings per share for the period was US$0.030, compared to US$0.046 in the same period last year.
“The conflict in the Middle East continued to be a major external factor affecting Bank ABC’s performance through the first half of 2026. Heightened geopolitical tensions placed increasing strain on global and regional economic conditions, contributing to higher inflation and commodity prices and significant disruptions to trade flows and supply chains. This affected economic activity and business momentum to varying degrees across the markets in which the Group operates. Risks remain elevated, given the potential for further escalation, continued commodity market disruptions and broader geopolitical uncertainty,” the bank in a statement said.
“Against this challenging backdrop, Bank ABC remained focused on operational resilience and business continuity, ensuring uninterrupted service to clients, supporting the wellbeing of its employees and maintaining business-as-usual operations across the franchise. At the same time, the Bank continued to enhance its risk management and monitoring capabilities, enabling the proactive identification and management of potential credit, market and liquidity risks arising from the evolving environment.
“Despite these unusual operating conditions, the Group delivered resilient underlying operating performance, supported by the strength of its diversified footprint. H1 2026 Net Profit attributable to the shareholders of the parent was US$111 million, representing a reduction of 27% year on year (YoY). Underlying this, the Group’s Operating Profit performance remained broadly in line YoY, driven by a core business revenue growth of 5% YoY, and through disciplined cost management. The reduction in Net Profit was primarily driven by a higher provision charge compared with the prior year, reflecting prudent Expected Credit Loss (ECL) provisioning considering the prevailing macroeconomic environment, together with the absence of one-off recoveries recognised in the previous year. Capital and liquidity ratios remained robust and comfortably above regulatory requirements.
Looking ahead to the second half of 2026, the Group will continue to monitor regional geopolitical and economic developments closely, while maintaining its focus on balance sheet strength, risk discipline and supporting clients across its core markets.
“While global uncertainty remains elevated and has impacted certain of our key markets, business activity proved resilient across other parts of the Group. We remain focused on maintaining operational stability and prudent risk management. As we enter the second half of 2026, Bank ABC is well positioned, underpinned by its strong fundamentals and well-diversified business model, to continue serving as a trusted financial partner to our customers. The Group remains fundamentally strong, with a strong capital position and healthy liquidity ratios to safeguard long term shareholder value,” Commenting on the H1 2026 results, Bank ABC Group Chairman, Naji Belgasem, 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.
