Manama, May 12 (BNA) The Arab Banking Corporation (Bank ABC) announced achieving a net profit in the first quarter of 2022 for shareholders of the parent company of $31 million with the return of the cost of risk to pre-pandemic levels, which reflects a better improvement. Economic outlook and resilience of the group’s asset portfolio.
The bank said in a statement that total operating income grew on a main basis (36%) and a basic basis (28%), reflecting higher volumes, stable profit margins and benefiting from the consolidation of BLOM BANK Egypt (BBE).
Operating expenses on a headline basis were higher than the previous year, with BBE integration and business returning to a normal level of activity compared to the previous year.
The group remains focused on disciplined cost control while continuing to invest in digital transformation to build its ‘bank of the future’.
The bank said the balance sheet remains strong with capital and liquidity ratios well above regulatory requirements: the group’s T1 ratio is 16.6%, predominantly comprising 14.7% CET1, LCR 247% and NSFR 124%.
“We are very pleased with the strong profitability of the group in the first quarter of 2022, which was achieved despite geopolitical, industrial and market challenges,” said Bank ABC Group Chairman, Sadeq Omar Al Kabeer.
“Bank ABC continues to make significant progress in its transformational journey to build the ‘Bank of the Future’, with a strong focus on the strength of its balance sheet, as evidenced by the issuance of the AT1 group and the change in the outlook to ‘stable’ by standard and for the poor.”
According to the statement, the integration of the group’s acquisition of BBE is progressing well, with the legal merger in advanced stages of regulatory approval.
The group also completed the issuance of additional Tier 1 capital, further strengthening the capital position, which was recognized in Standard & Poor’s affirmation of Bank ABC’s investment grade rating at BBB-, with its outlook upgraded to ‘stable’.