Bank ABC reports underlying net profit up 11% in Q1 2025

Biz Bahrain

12-05-2025

Bank ABC (Arab Banking Corporation B.S.C.) – Bahrain Bourse Trading Code 'ABC' – today announced its financial results for the first quarter of 2025. The Group has made a resilient start to the year, against a backdrop of challenging economic conditions, reporting a net profit attributable to the shareholders of the parent of USD$76 million, representing a 1% headline increase over the corresponding period last year. Adjusted for foreign exchange translation differences, underlying net profit rose by a robust 11% year-on-year (YoY), reflecting strong growth in the Group's core businesses.
Despite the backdrop of persistent economic and geopolitical uncertainty, the Group maintained its strategic focus on accelerated growth, while maintaining healthy capital and liquidity buffers, cost control and stable credit provisions. Bank ABC's business excellence, client-centricity and innovation leadership continue to receive regional and international recognition. Recent accolades include the 'Best Bank for Trade Finance in Bahrain' from the Global Finance World's Best Trade Finance Awards and 'World's Best Financial Innovation Lab Award for ABC Labs' from the Global Finance Innovators Awards. Moreover, Bank ABC's Islamic subsidiary, was honoured as 'The Best Islamic Corporate Bank in Bahrain' and the 'Best Digital Offering by an Islamic Bank in Bahrain' by the Islamic Finance News Awards.
Bank ABC's Group Chairman, Naji Issa Belgasem commented, 'We are pleased with this robust start to the year. While escalating global trade tensions continue to cast a shadow on business sentiment, Bank ABC has repeatedly demonstrated its ability to navigate uncertain conditions, while delivering sustainable underlying growth. Our newly constituted Board of Directors is fully committed to delivering long-term shareholder value, whilst remaining focused on prudent risk management and sound corporate governance.'
Consolidated net profit attributable to the shareholders of the parent, for Q1 2025 was USD76 million, on a headline basis 1% higher compared to USD75 million reported for the same period last year. Underlying growth in net profit, adjusting for FX impact of BRL and EGP was 11%. Earnings per share for the period was USD0.022, compared to USD0.021 in the same period last year.
Total comprehensive income attributable to the shareholders of the parent was a positive US$154 million in Q1 2025 as compared to a negative USD28 million during the same period last year. Q1 2025 benefited from the strengthening of the BRL against the USD, as compared to Q1 2024, which was impacted by devaluation of Egyptian Pound against USD. Headline Total Operating Income for Q1 2025 was USD332 million, a 3% reduction compared to USD343 million reported for the same period last year. Underlying Total Operating Income for Q1 2025 was USD360 million, compared to USD343 million for the same period last year, a year-on-year growth of 5%, similarly adjusting for FX impact.
Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was USD4,266 million, compared to USD4,207 million reported at the 2024 year-end, after absorbing the impact of dividend payment. Total assets stood at USD45.7 billion as at the end of Q1 2025, compared to USD46.3 billion at the 2024 year-end, a 1% reduction, reflecting short-term asset and liability management fluctuations. Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 15.0% of which CET 1 at 13.2%. LCR and NSFR at 209% and 126% 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 consumer banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan. The full financial statements and press release are available on the Bahrain Bourse and Bank ABC's website. Bank ABC will host a virtual Investors call to discuss the Q1 2025 earnings on 15 May 2025. Further details and the investor presentation are available at www.bank-abc.com.