ABC Bank yesterday announced its financial results for the third quarter of 2023 and the first nine months of the year.
The Group continued to perform well, driven by solid business growth coupled with a rising interest rate environment.
Total operating income was $943 million, up 19% year over year (YoY).
Equity ratio and liquidity ratio continued to maintain high levels. The bank reported a 61% year-over-year increase in net income attributable to shareholders to $183 million.
During this period, Bank ABC Group also received several prestigious awards for its efforts to offer a new kind of banking experience to businesses and individuals. ABC Bank was named ‘Bahrain’s Best Corporate Bank’ by the Euromoney Awards for Excellence, recognizing the bank’s impressive digital implementation and role in headline deals. Additionally, ila Bank, the bank’s digital mobile-only retail division, won all six awards in Bahrain at Global Finance’s World Best Consumer Digital Bank Awards 2023, and was named ‘Best’ for the third consecutive year. Won the title of “Consumer Digital Bank.”
Sadeq El Kaber, Chairman of ABC Banking Group, said: The Group’s balance sheet remains sound and strong, with high capital and liquidity ratios. We look forward to continuing this great momentum as we steadily advance on our strategic journey to build the ‘bank of the future’.
Performance highlights for Q3 2023:
Consolidated net income attributable to owners of parent for the third quarter of 2023 was $62 million, an increase of 41% compared to $44 million in the prior year period. The quarterly results broadly track year-to-date trends, as explained below.
Earnings per share for the same period were $0.02, compared to $0.01 in the year-ago period.
Total comprehensive income attributable to owners of the parent was a gain of $65 million, compared to a loss of $6 million in the prior year period.
Performance highlights for 9 months of 2023:
Consolidated net income attributable to owners of parent for the first nine months of 2023 was $183 million, compared to $114 million in the prior-year period, driven by strong core business growth in many markets.61 % increased. Effectively managing interest rate exposure in a rising interest rate environment.
Earnings per share for the period were $0.06, compared to $0.04 in the year-ago period.
Total comprehensive income attributable to owners of the parent was positive by $174 million, compared to a loss of $109 million reported in 2022.
Last year, we incurred losses due to changes in the fair valuation of our fixed income portfolio and the net impact of foreign currency translation at our foreign subsidiaries. However, during the period, these decreased significantly on a net basis due to the appreciation of the Brazilian real and positive developments in fair market valuations of our fixed income portfolio, offsetting the impact of the weakening of the Egyptian pound against the US dollar.
Total operating income (TOI) was $943 million, an increase of 19% compared to $791 million in the prior-year period. This reflects strong underlying business and interest growth.
Operating expenses were $554 million, an increase of 12% compared to $494 million in the prior year period. This was due to a combination of strategic investments and transformation initiatives, which supported business growth and higher general inflation.
Therefore, given TOI growth of 19% y-o-y, this group has a positive revenue/cost ‘jaws’ of 7%, resulting in an improved cost/income ratio.
The Group remains focused on disciplined cost management while continuing to invest in key strategic digital initiatives to build the Bank of the Future.
Balance sheet
Equity attributable to shareholders of the parent company and perpetual security holders at the end of the period was $4,211 million, compared to $4,095 million reported at the end of 2022, primarily due to an increase in earnings after dividend payments of 3. % increased.
Total assets were $41.3 billion at the end of the period compared to $36.6 billion at the end of 2022, an increase of 13% due to business growth and portfolio management activities.
Sound capital and liquidity ratios: Tier 1 capital ratio is 15.4%, of which CET1 is 13.7%. LCR and NSFR are 247pc and 122pc respectively.
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