Bank ABC announces its financial results for the year ended 31 December 2024

Al Bawaba

10-02-2025

Bank ABC (Arab Banking Corporation B.S.C.) - Bahrain Bourse Trading Code 'ABC' - today announces its financial results for Q4 and full year 2024.Bank ABC continued its strong performance, delivering record-breaking results during 2024 reporting annual Net Profit attributable to its shareholders of US$285 million, a growth of 21% year-on-year (YoY) to reach its highest level in the Group's history (from continuing business operations). This was achieved on the back of strong core business growth, a stable funding base and steady cost of credit. Total Operating Income also reached a record high at US$1,339 million, a 5% growth YoY despite of FX headwinds in some of the key markets. The Group's Balance sheet strength was also maintained its strength, with capital and liquidity ratios at robust levels, while total assets reached US$46bn. On this occasion, the Board of Directors are pleased to recommend a cash dividend distribution US$0.0275 per share a 22% increase YoY, which represents 30% of profit attributable to the shareholders of parent, approximately US$85.5m (2.75% of equity capital). This is subject to relevant regulatory approvals and will be presented for approval at the Bank's Annual General Meeting. Bank ABC continued to make rapid progress on its strategic plan, while successfully navigating challenging economic and geopolitical conditions, continuing to achieve major milestones on its digital and operational transformation journey. Its business excellence, client-centricity and leadership in innovation were recognised by several distinguished regional and international awards platforms. Notable among the many awards received were the 'Best Bank in the Middle East' for 'Innovation in Digital Banking' and 'Transaction Banking' in 2024 by The Banker – Financial Times; the Best Trade Finance Provider in the Middle East by Global Finance and Global Trade Review (GTR) and 'Bahrain's Best Digital Bank' by Euromoney. Moreover, Bank ABC's digital, mobile-only ila Bank was honored as 'Bahrain's Best Consumer Digital Bank' by Global Finance for the fourth consecutive year, alongside six additional awards for excellence. Bank ABC's Group Chairman, Mr. Saddek Omar El Kaber remarked, 'We are proud of having achieved these record-breaking results, with Net Profit from our business at the highest it's ever been in the Bank's history. The Group started the year on a strong footing and maintained its core business growth momentum throughout the year, reaching 21% YoY. This reflects the Bank's strong and diversified business model and its capabilities to leverage market opportunities and create value for our investors. Impressively, this was also achieved while maintaining a robust Balance Sheet, with strong capital and liquidity ratios giving growth capacity for 2025. The accelerated and firm delivery of the Bank's strategy combined with the dedication of its talented team have led to these significant milestones and excellent international recognition through multiple awards, as it continues to strengthen its position as 'MENA's international bank of the future.' Performance Highlights for the fourth quarter (3 months) of 2024 Consolidated net profit attributable to the shareholders of the parent, was US$70 million, 35% higher compared to US$52 million reported for the same period last year. Earnings per share for the three-month period was US$0.022 per share, compared to US$0.017 per share in the same period last year.Total comprehensive income attributable to the shareholders of the parent was affected by the sharp devaluation of the Brazilian Real against the US$. Total comprehensive income attributable to the shareholders of the parent was a negative US$48 million compared to a positive US$84 million, reported for the same period last year.Total operating income for Q4 2024 was US$337 million, slightly higher compared to US$336 million reported for the same period last year. Adjusting for FX translation effects, mainly from EGP and BRL depreciation, underlying total operating income would have been US$363 million, 8% higher compared to the same period last year.Performance Highlights for full year 2024 (12 months)Consolidated net profit attributable to the shareholders of the parent was US$285 million, a growth of 21% compared to US$235 million reported last year, driven by a combination of core business growth across many markets, higher average asset volumes, disciplined management of operating expenses and a steady cost of credit.Earnings per share for the year was US$0.086 per share, compared to US$0.070 per share last year.Total comprehensive income attributable to the shareholders of the parent during the year was affected by the FX translation impacts of EGP (primarily during Q1) and BRL (in Q4). The net impact of these resulted in total comprehensive income attributable to the shareholders of the parent at a negative US$12 million, compared to a positive US$258 million reported last year (when the currencies remained broadly stable).Total operating income for the year 2024 was US$1,339 million, 5% higher compared to US$1,279 million reported last year. Adjusting for FX translation effects, mainly from EGP and BRL depreciation, underlying total operating income would have been US$1,404 million, 10% higher compared to the same period last year, reflecting broad based growth across almost all the core markets.Balance SheetEquity attributable to the shareholders of the parent and perpetual instrument holders at the end of the year was US$4,207 million, compared to US$4,300 million reported at the 2023 year-end, 2% lower primarily from the impact of FX movements in EGP and BRL and dividends paid mitigated by the profit earned during the year.Total assets stood at US$46,265 million at the end of the period, as compared to US$43,892 million at the 2023 year-end, an increase of 5% driven by core business and liquid asset growth, balance sheet optimisation and portfolio management actions.
Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 15.5%, of which CET1 at 13.6%. LCR and NSFR at 198% and 123% respectively.
Bank ABC is a leading player in the region's banking industry, with presence in 15 countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured finance, Capital Markets, Financial Markets, Real Estate finance to corporates and financial institutions. It also provides retail banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and ila application in Jordan.
The full set of financial statements and the press release are available on the Bahrain Bourse and Bank ABC websites. Further details are provided in the Investor Highlights Presentation published on Bank ABC's website.
Bank ABC will be hosting a virtual Investors call to discuss the full year earnings update for the year ended 2024 on 13 February 2025. Further details are available on the Bank's website: www.bank-abc.com.
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