Bank ABC Islamic H1 net profit up 7.3% to $26.9m

14/08/2025 05:15 AST

Bank ABC Islamic reported a net profit of $26.9 million for the first half of 2025, a 7.3% increase compared to $25.1 million for the same period last year.

The performance was driven by 4.4% rise in total operating income after profit on Murabaha and other payables and before attribution to quasi-equity, which reached $89.6 million due to effective balance sheet management. Additionally, provisions for the period were $2.9 million write-back compared to $1.4 million charge in HY 2024.

Key performance highlights for H1
* Net profit of $26.9 million, 7.3% higher than same period last year.
* Total operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at $89.6 million, 4.4% higher than the same period last year, while net income attributable to quasi-equity increased by 11.3%.
* Operating expenses were $5.1 million, 43.9% lower compared to $9.1 million for last year.

Hammad Hassan, Managing Director of Bank ABC Islamic, said: "We are pleased to report a strong first half of 2025, delivering both in assets and profitability despite a competitive market environment, and geo-political uncertainties around us. Our business momentum remained strong across all product lines, especially capital markets business, both loan syndications as well as debt capital markets. We acted as Joint Lead Manager for ten sukuk issuances during first half of the year, supporting high profile corporates, financial institutions and a sovereign.

"With a solid balance sheet, and prudent risk management, we are well-positioned to remain on the growth trajectory, while maintaining strong capital and liquidity positions for the remainder of 2025," Hasan said.

Business performance of Q2:
* Net profit for the second quarter was $12.4 million compared to $14.3 million reported in the second quarter of last year.
* Operating expenses were $2.3 million, compared to $2.4 million for the same period of last year.

Balance Sheet:
* ABC Islamic Bank's total assets stood at $3.250 billion as of June 30, 2025, compared to $2.865 billion at 2024 year-end.
* Investments were at $1.4 billion, compared to $1.3 billion at 2024 year-end, primarily comprising sukuks issued by financial institutions and sovereigns.
* Murabaha receivables, Ijarah and Musharaka financing were at $1,833 million, compared to $1,550 million at 2024 year-end.
* Shareholders' equity on June 30, 2025, stood at $354 million, compared to $364 million at 2024 year-end.
* The bank's capital base remains very strong with a capital adequacy ratio of 36.9%, predominantly Tier 1, which totalled 36.2%.

Trade Arabia