Bank ABC Islamic Reports 13% Growth in Net Profit for 2024

Islamicfinhub.com – Bank ABC Islamic has announced a 13% year-on-year increase in net profit, reaching $52.3 million for the year ending December 31, 2024, compared to $46.3 million in 2023.

This growth in profitability was driven by strong core business expansion and higher average asset volumes. The bank maintained a robust balance sheet with a solid capital ratio.

Total operating income, after deducting profit on murabaha and other payables and before attribution to quasi-equity, stood at $178.7 million—20% higher than the previous year. Meanwhile, net income attributable to quasi-equity saw a 23.8% increase.

Provisions for credit losses amounted to $1.4 million, down from $1.8 million in 2023. Operating expenses rose to $13.8 million, reflecting a 26.7% increase from $10.9 million in the prior year. However, after adjusting for a one-time extraordinary charge, expenses were only 5.6% higher than in 2023.

For the fourth quarter of 2024, the bank reported a net profit of $14.4 million, up from $11.2 million in the same period of 2023. Total operating income during the quarter reached $47.4 million, marking a 23.4% year-on-year increase. Net income attributable to quasi-equity rose by 34% compared to Q4 2023. Operating expenses stood at $2.6 million, slightly above the $2.5 million reported for the corresponding period last year.

As of December 31, 2024, Bank ABC Islamic’s total assets grew to $2.865 billion, up from $2.501 billion at the end of 2023. Investments surged to $1.3 billion from $809 million, while murabaha receivables, ijarah, and musharaka investments slightly declined to $1.550 billion from $1.566 billion. Shareholders’ equity also increased to $364 million from $328 million in 2023.

The bank’s capital adequacy ratio remained strong at 45.9%, with Tier 1 capital making up 44.8% of the total.

Leadership Commentary

Bank ABC Islamic’s Managing Director, Hammad Hassan, expressed satisfaction with the 2024 performance, stating, “We are extremely pleased to report a solid net profit of $52.3 million, marking a 13% year-on-year increase. This achievement, despite challenging market conditions, reflects our commitment to sustainable growth and resilience. We continue to enhance our core business and invest in digital transformation to better serve our customers. Our efforts have been recognized through multiple industry awards, including the prestigious ‘Best Islamic Financial Institution in Bahrain’ from Global Finance for the second consecutive year.”

He further extended gratitude to the bank’s dedicated team, shareholders, and the Board, as well as the Shariah Supervisory Board and the Central Bank of Bahrain for their continued support. Looking ahead, he expressed cautious optimism for an even stronger performance in 2025.

Recognitions and Awards

In 2024, Bank ABC Islamic received multiple accolades, including:

• Best Islamic Financial Institution in Bahrain – Global Finance’s World’s Best Islamic Financial Institution Awards.
• Best Islamic Finance Bank in Bahrain – IFN Banks Poll.
• Bahrain’s Most Transformed Islamic Bank – Euromoney Islamic Finance Awards.
• Islamic Finance Deal of the Year – North America – Euromoney (for its role in a $600 million corporate sukuk transaction for Air Lease).

These awards highlight the bank’s strong financial performance, dedication to digital transformation, and consistent delivery of innovative Islamic finance solutions.