Manama, Feb. 13 (BNA): Bank ABC Islamic announced that it had a strong performance in 2022, ending the year with a net profit of $38.8 million, which represents a 29.8% improvement year-on-year from $29.9 million in 2021.
Net profitability as well as total operating income grew by double digits compared to last year. The bank said the high profit rate environment and stable performance of customer business led to a 15.3% growth in total operating income compared to last year.
In appreciation of the bank’s performance, the Islamic Rating Agency (IIRA) affirmed Bank ABC Islamic’s rating 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 2022 results.
Net operating income before credit losses was $46.1 million, up 15.3 percent from last year’s $40.0 million.
Provisions for credit losses for the year amounted to $1.7 million, compared to $1.1 million during the same period last year.
Total assets of Bank ABC Islamic amounted to $2.415 billion at December 31, 2022, compared to $2.332 billion at the end of 2021.
Investments amounted to $882 million, compared to $852 million at the end of 2021, while murabaha and lease receivables amounted to $1.446 million, compared to $1.420 million at the end of 2021.
Shareholders’ equity as of December 31, 2022, amounted to $330 million, compared to $297 million at the end of the year 2021, an increase of 11.3%.
The bank said its capital base remains strong with a capital adequacy ratio of 40.9%, mostly Tier 1, which stood at 39.9%.
“Stable customer business, efficient use of the balance sheet, resulting in good asset allocation income and a higher profit rate environment, contributed to an increase in total operating income by 15.3% year-on-year,” said Hammad Hassan, Managing Director of Bank ABC Islamic. .
“Effective cost management and an improved credit environment have boosted the Bank’s net profitability resulting in an increase in profits of 29.8% compared to last year. We are cautiously optimistic about the outlook for 2023 in an inflationary environment and higher rates.”