Bank ABC announces $31 million net profit in Q1
Arab Banking Corporation (Bank ABC) has announced a net profit in the first quarter of 2022 attributable to the shareholders of the parent of $31 million with cost of risk returning to pre-pandemic levels, reflecting a better economic outlook and the resilience of the Group’s asset portfolio.
Total Operating Income grew on both a headline (36%) and underlying (28%) basis, reflecting higher volumes, consistent margins, and benefiting from consolidation of BLOM Bank Egypt (BBE), the bank said in a statement.
Operating expenses on a headline basis were higher than prior year, with integration of BBE and with the business returning to normal level of activity compared to previous year.
The group remains focused on disciplined cost control while continuing investment into digital transformation to build its ‘bank of the future’.
The bank said that the balance sheet remains strong with capital and liquidity ratios well above the regulatory requirements: the Group’s T1 Ratio is 16.6%, comprising predominantly 14.7% CET1, LCR 247%, and NSFR 124%.
“We are extremely pleased with the Group’s solid profitability for the first quarter of 2022, achieved despite geo-political, industry, and market challenges,” Bank ABC’s Group Chairman Saddek Omar El Kaber said.
“Bank ABC continues to achieve great progress on its transformation journey to build a “bank of the future”, while focusing firmly on its balance sheet strength, as evidenced by the Group’s AT1 issue and the change in outlook to ‘Stable’ by Standard and Poor’s.”
According to the statement, the integration of Group’s acquisition of BBE is progressing well, with the legal merger in advanced stages of regulatory approval.
The Group has also concluded an issue of Additional Tier 1 capital, further strengthening its capital position, which was recognized in Standard and Poor’s affirmation of Bank ABC’s investment grade rating of BBB-, while upgrading its outlook to ‘Stable’.