Bank ABC announces marginal reduction of net profit for H1 2019

A branch of Arab Banking Corporation is viewed at 3rd Avenue in New York. (File photo: AFP)

Bank ABC (Arab Banking Corporation) announced its financial results for the first half of 2019. Net profit for this period was $112 million, a small reduction of one percent compared to $113 million for H1 2018.

However, the bank stated that after adjusting for exceptional one-off items in H1 2018, net profit grew nine percent. The organization benefited from improved provision experience, after absorbing the foreign exchange impact on the pre-provision net income, it said in a statement.

Operating expenses grew in H1 2019 by seven percent to $257 million, a $17 million increase from H1 2018. The bank attributed this growth to inflation and the flow-through effect of continuing strategic investment initiatives.

Earnings per share remained steady for H1 2019 at $0.04, the bank reported, similar to H1 2018.

For Q2 2019, net profit declined five percent to $57 million from $60 million in Q2 2018. Again, however, if adjusted for exceptional one-off items, Q2 2019 performance was nine percent higher than Q2 2019.

Bank ABC’s total assets stand at $29.7 billion as of H1 2019, a slight increase from the $29.5 billion reported at 2018 year-end. Tier 1 capital was reported at 17.2 percent, with a total capital adequacy ratio of 18.2 percent.

“The half year results demonstrate the resilience of the Bank despite challenging market conditions during the period, both on economic and political fronts,” said Bank ABC Group Chairman Saddek Omar el-Kaber in a statement. “Adjusting for the effects of foreign currency depreciation and one-off items last year, the Group is growing year-on-year at a satisfactory pace, without compromising its strong balance sheet and conservative credit risk approach.”

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Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54
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