Manama, February 21 (BNA) Bank ABC Islamic announced its financial results for the year 2021.
The bank had a strong performance in 2021, ending the year with a net profit of $29.9 million, a 4.4% improvement year-over-year from $28.6 million in 2020. The strong results for 2021 reflect the bank’s continued focus on generation. Growth while maintaining prudent risk management practices. Despite the low profit rate environment and a market that was full of liquidity, the bank succeeded in maintaining its asset base on an annual basis, which is a significant achievement. Asset prices came under pressure due to excess liquidity and negatively impacted operating income, however, lower impairment charges helped the bank return to normal performance after it was negatively impacted in 2020 due to a regional fraud case.
In 2021, the Bank facilitated the expansion and spread of Islamic products in one of the ABC Group’s core network markets, Algeria. An Islamic window operation, under the brand name “Al Buraq”, was launched at ABC Algeria in February 2021 offering a full range of Islamic products to wholesale and retail customers.
In recognition of the bank’s performance, the Islamic Rating Agency (IIRA) has affirmed the rating of ABC Islamic Bank at A-/A-2 at the international level and A+ (bh) / A-1 (bh) at the national level with a stable outlook. , based on September 2021 results.
Performance highlights:
§ Net profit of $29.9 million reflects the bank’s success in returning to normal performance after absorbing the exceptional fraud-related vulnerability in 2020.
§ Total operating income of $40 million, down 10.9% from $44.9 million reported last year, mainly due to less customer creation from new businesses to banks, lower profit rate environment and lower fee income. However, despite these challenges, the bank has been able to maintain its asset base on an annual basis.
§ Operating expenses amounted to $8.6 million, an increase of 35% compared to $6.4 million last year. When adjusted for one-time pandemic-related items, expenditures for 2021 increased by only 7.4%.
§ The balance sheet maintained its strength, with a capital adequacy ratio of 37.7%, dominated by Tier 1 of 36.7%.
“We are pleased with the bank’s overall performance in 2021, despite the impact on the bottom line due to a combination of factors including the low profit rate environment and the declining creation of new corporate clients to the banks due to travel restrictions. Our prudent risk management practices resulted in a significant decrease in impairment compared to last year, which was an exceptional year, as it was adversely affected by a regional fraud case. Hammad Hassan, Managing Director of Bank ABC Islamic said:
Here is a more detailed summary of the financial results:
Fourth Quarter Financial Results (Three Month Period)
§ Net profit for the fourth quarter was $3.2 million compared to $6.3 million in the fourth quarter of 2020.
§ Total operating income amounted to US$ 8.8 million compared to US$ 9.7 million for the same period last year.
§ Operating expenses amounted to 3.5 million dollars, compared to 1.4 million dollars for the same period last year.
§ Provisions for credit losses amounted to $2.0 million compared to $1.9 million last year.
2021 financial results
§ Net profit for 2021 was $29.9 million, an increase of 4.4% over $28.6 million reported in the previous year, mainly due to lower impairment provisions.
§ Total operating income was $40.0 million, 10.9% lower than last year’s $44.9 million.
§ Operating expenses amounted to $8.6 million compared to $6.4 million last year.
§ Provisions for credit losses for the year amounted to $1.1 million, compared to $9.5 million during the previous year.
balance sheet:
§ Total assets of Bank ABC Islamic amounted to $2.332 billion at the end of 2021, compared to $2.314 billion at the end of 2020.
Shareholders’ equity amounted to $297 million on December 31, 2021, compared to $293 million at the end of 2020.
§ The bank’s capital base remains very strong with a capital adequacy ratio of 37.7%, mostly Tier 1 of 36.7%.
FKN