Bank ABC Islamic announces 21 percent increase in net profit for H1 2019

Total operating income rose to $22.3 million, 8.1 percent higher year-on-year. (File photo: Reuters)

Bank ABC Islamic announced on Monday its results for the first half of 2019. Net profit for H1 2019 was $18.9 million, up 21.1 percent from $15.6 million reported in H1 2018.

Meanwhile, total operating income rose to $22.3 million, 8.1 percent higher year-on-year. Operating expenses rose 6.8 percent to $3.8 million for H1 2019, up from $3.6 million in H1 2018.

Net profit for Q2 2019 was 25.9 percent higher year-on-year at $9.3 million from $7.4 million. Total operating income rose $11.1 million in the same quarter, a 16.6 percent increase from $9.6 million reported in the second quarter last year. Finally, operating expenses for Q2 2019 were $1.9 million, 12.4 percent higher than the Q2 2018 result of $1.7 million.

The bank’s total assets were $1.7 billion as of June 30, 2019, a slight decrease from the 2018 year-end result of $1.75 billion. Shareholders equity also reduced slightly to $347 million from $352 million as of 2018 year-end. Bank ABC Islamic’s capital adequacy ratio stood at 34.3 percent as of H1 2019 and was predominately made up of Tier 1 capital, which totaled 33.3 percent.

“The positive momentum developed in the first quarter of the year has continued. The year-on-year increase in total operating income of 8.1 percent is healthy considering the market activity has continued to remain subdued,” said Managing Director of Bank ABC Islamic Hammad Hassan.

“The overall improvement in net profitability has been possible due to more efficient use of balance sheet and proactive management of some exposures that contributed to higher credit costs in the same period last year. Our teams remain focused on quality origination, providing service excellence to our clients and on keeping the credit costs in check. Looking forward to maintaining this excellent performance as we progress ahead in the year,” he added.

Last Update: 15:07 KSA 18:07 - GMT 15:07