Golf News | ABC Islamic made $ 8.8 million net profit during first quarter

Advertise BankABCAl Islami yesterday announced its financial results for the first quarter of the current year 2022. The bank closed the first quarter of the year with a net profit of $ 8.8 million, which largely goes in the way of the expectations of the first quarter, core banking activities grew year on year With the gradual exit of the effects of the spread of the Covid19 pandemic.

However, the capital markets business experienced poor activity during the first quarter due to the favorable environment The high profit rates as well as the volatility in the markets due to the geo-political situation. As markets stabilize and investors and exporters become accustomed to the new environment with high interest rates, we expect The Capital Markets business to flourish with new sukuk issues and syndicated facilities.

The most prominent features of the bank’s performance during this period are:

*Net profit was $ 8.8 million, down 15.6%Compared to the same period last year.

*Total operating income was $ 9.1 million, a decrease of 22.5%compared to the same period in 2021.

*The difference in the value of total operating income and net profit compared to last year’s results is mainly due to weak activity in the capital markets during the first quarter, in addition to the unusual increase in profits During the first quarter of 2021, from the rotation of some assets.

*The general budget remained strong as the overall capital adequacy ratio reached 40.7%.

*The provision for credit losses during this period was a provisioned recovery of US $ 2 million compared to USD 0.7 million recorded during the same period last year. The repayment in greater value is mainly due to the improvement in the macroeconomic environment in a post-pandemic world.

*Operating expenses amounted to $ 2.1 million compared to $ 1.9 million recorded during the same period last year, with business returning to its normal levels compared to the previous year

Regarding the financial results, Hammad Hassan, managing director of the Bank, said:ABCIslamic: “We started the year with the Omicron mutant, which was lighter and consequently, with fewer restrictions, contributed to the return of business to normal levels. This will have a positive impact on the bank’s acquisition of new customers, which is an important business criterion, so we are largely on track for the expected performance during 2022. With the improvement in the macroeconomic credit environment and the region benefiting pulling out of higher oil prices, we remain optimistic With caution about business performance, which will accelerate in the coming months. ”

With regard to the general budget:

*The total assets of the bankABCThe Islamic Bank amounted to $ 2.285 billion on March 31, 2022, compared to $ 2.332 billion registered at the end of 2021. The general budget is expected to grow with the progress during this year, which coincides with the expected improvement in the activities of capital markets, in addition to the activities of clients in general.

*Total shareholder equity as of March 31, 2022 amounted to approximately $ 306 million, compared to $ 297 million recorded at the end of 2021.

*The capital base of the bank remained very strong,Since the total capital adequacy ratio was 40.7%The ratio of the first level of capital amounted to 40%.

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