Bank Group announced yesterdayABC(Arab Banking Corporation) whose shares are traded on the Bahrain Stock Exchange under the symbol «ABC»Financial results for the first quarter of 2022.
The group started the year on a strong basis, as an extension of the progress the group made during 2021, which is the year that recovered from the conditions imposed by the pandemic. The merger is progressing well after the group’s acquisition of BLOM Bank Egypt, with the level of progress made in Legal Integration reaching advanced levels of regulatory approvals. The Group has completed the issuance of additional Level 1 capital bonds, which will improve its capital position. The group has more investment rating, which was confirmed by Standard & Poor’s rating agency bank.ABCwhenBBB– ”, raising the outlook for the bank’s credit rating to“ stable ”.
Key performance characteristics during the first term:
*The net profit attributable to the parent company’s shareholders amounted to about $ 31 million, with a cost of risk It returns to pre-pandemic levels, reflecting a better economic outlook, and the resilience of the group’s asset portfolio.
*Total operating income increased significantly on an operating basis by (36%) and based on an average rate of (28%), which reflects the achievement of higher values and stable profit margins, in addition to the benefit of integrating the results of a bank Bloom Egypt.
*Operating expenses on an operating basis recorded higher levels than the previous year, with the merger of Blom Bank Egypt and the return of business to its normal levels of activity compared to the previous year. The group remains focused on controlling spending while still investing in digital transformation to build a “bank”. The group’s future.
*The Bank still has a strong balance sheet with capital ratios and liquidity ratios that are much higher than regulatory requirements: Level 1 capital reached 16.6%which consists mainly of Level 1 principal equity at 14.7%Liquidity coverage amounted to 247%And the stable liquidity ratio is 124%.
The chairman of the Banking Group commentedABCSiddiq Omar Al Kabeer said: “We are very pleased with the strong profit rates that the group achieved during the first quarter of 2022, which were achieved despite the geopolitical challenges and challenges facing the Banking and Market Challenges sector. continue bankingABCProgress in its transformation journey to build (the Bank of the Future), with a strong focus on a strong budget The public bank, as evidenced by the group’s issuance of Level 1 capital securities and the change in Bank’s Perspective ‘s credit rating to (stable) by Standard & Poor’s.
The following is a detailed summary of the financial results:
Business performance during the first quarter of 2022
*The consolidated net profit attributable to the parent company’s shareholders for the first quarter of 2022 amounted to approximately 31 US $ 1 million, which recorded a 3. higher rate%Compared to $ 30 million recorded in the same period last year.
*Earnings per share during this period amounted to $ 0.01, to record the same rates during the period. Same as last year.
*Total comprehensive income attributable to parent company equity holders was $ 8 million, compared to a loss of USD 16 million recorded during the same period last year, affected by foreign exchange conversion at branches. The group’s external assets and the change in the fair value of debt securities.
*On an operating basis, total operating income was $ 247 million, which is 36. higher%Compared to 182 million US dollars recorded during the same period last year, and based on a loss rate. Total operating income was $ 253 million during the period, compared to $ 197 million recorded in the same period last year, benefiting from the merger of the results of BLOM Bank Egypt.
*Net interest income was $ 177 million, over 45%Compared to 122 million US dollars recorded during the same period last year, supported by the volume of high loans, fixed profit margins and the accession of BLOM Bank Egypt.
*Operating expenses amounted to $ 159 million, 27 more%Compared to $ 125 million for the same period last year, due to the merger of BLOM Bank Egypt, in addition to To return group activity to levels closer to normal. The group has continued to benefit from cost-cutting initiatives, while re-prioritizing investments to continue its transformation journey. Group digital and strategic initiatives.
*The Group’s net operating profit on an operating basis before credit losses and taxes was $ 88 million, an increase of 54%Compared to $ 57 million recorded during the same period last year. The Group achieved an operating profit before credit losses and taxes of 94 US $ 1 million during the quarter based on a net operating profit, 31%Compared to $ 72 million in the first quarter of 2021, after Blom Bank joined Egypt
*Provisions for non-performing loans during this period amounted to $ 25 million, compared to $ 20 million recorded during the same period last year, generally in line with our historical experience in dealing with credit losses.
*Tax was $ 20 million, compared to $ 1 million in the first quarter of 2021, the discrepancy is largely due to the tax transactions of currency hedges in a bankABCBrazil which has a corresponding effect on total operating income. On an adjusted basis, tax fees during this period amounted to USD 17 million, compared to the value of USD 16 million during the same period last year.
*Equity attributable to the shareholders of the parent company and holders of perpetual bonds at the end of the period amounted to approximately 4. $ 221 million, compared to $ 3,872 million at the end of 2021, recorded an increase of 9.%And you decided to take advantage of the issuance of additional Level 1 capital bonds during the first quarter, and after absorbing Dividend Distribution during 2021.
*Total assets were $ 34.8 billion at the end of the period, largely in line with the value of $ 34.9 billion recorded at the end of 2021.
*Loans and advances increased by 2%which reached $ 17.0 billion at the end of the period, compared to US $ 16.8 billion registered at the end of 2021, reflecting the group’s voluntary underwriting policy as well as the high exchange rate of Brazilian Real Currency.
*Deposits amounted to $ 24.9 billion, compared to $ 25.8 billion at the end of 2021.
*Liquidity levels remained strong with Liquidity Coverage at 247%The net stable liquidity ratio is 124%Liquid assets to deposit ratio improved to 51.%.
*Capital adequacy levels remain strong: Level 1 major share at 14.7%Level 1 capital ratio 16.6%The total capital adequacy ratio is 17.6.%.