Thursday 24 May 2018

Bank ABC Group profit up 22pc to $50m

MANAMA, May 14, 2017

Bank ABC (Arab Banking Corporation) today announced that its consolidated group net profit attributable to the shareholders of the parent for the first quarter of 2017 was $50 million.

These results are 22 per cent higher compared to a profit of $41 million reported for the same period last year, benefitting from strong performance in all core businesses, said the bank.

Total operating income was $229 million, compared with $209 million reported in the first quarter last year. Operating expenses at $112 million were slightly higher than last year, to some extent impacted from currency translation.

Net impairment provisions for the quarter at $29 million were higher than the previous year’s $18 million. The source of this increase is the bank’s Brazilian subsidiary Banco ABC Brasil, which continues to be impacted by some flow through from the recessionary conditions of the Brazilian economy, although the charge remains in line with our expectations for the quarter and is lower than Brazilian peer banks.  

Conversely, the group ratio of non-performing loans to gross loans improved to 3.9 per cent, compared to 4.1 per cent at 2016 year-end. The tax charge was at $23 million, compared to the charge of $35 million for the same period last year, the variance largely arising from the tax treatment of currency hedges.

Bank ABC Group’s total assets stood at $30.4 billion at the end of first quarter of 2017, comparable to $30.1 billion at the 2016 year-end. The bank continues to prioritise asset quality and return, whilst maintaining liquidity and capital strength.
Deposits at the end of the quarter were $20.1 billion similar to the level at 2016 year-end. The group’s liquidity position continues to be at comfortable levels with the liquid assets to deposits ratio at 68 per cent, similar to the 68 per cent at the year-end 2016.

Shareholders’ equity as at March 31 2017 stood at $3,833 million after the distribution of 3% dividend to the shareholders. Group consolidated total capital adequacy ratio (CAR) remained strong at 18.5%, comprising predominantly Tier 1 at 17.3%.

Bank ABC's group chairman Saddek Omar El Kaber commented: We are pleased to see the results of the first quarter in line with our expectations. While the unprecedented economic conditions in Brazil were challenging, we are observing first signs of recovery and our core businesses continue to perform well. Our proactive balance sheet management is bearing fruits, with our key health indicators improving.”

Bank ABC is a leading player in the region’s banking industry and provides innovative wholesale financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in Jordan, Egypt, Tunisia and Algeria. – TradeArabia News Service

Tags: group | Bank ABC |

More Finance & Capital Market Stories

calendarCalendar of Events