Bank ABC Publishes Fourth Quarter and Full-Year 2024 Financial Results
Bank ABC (Arab Banking Corporation B.S.C.) has announced its financial results for the fourth quarter and full year 2024, maintaining a solid performance with record-breaking results. The bank's net profit attributable to shareholders reached $285 million, a 21% increase compared to the previous year, achieving historic levels. This performance is the result of strong growth across all activities, combined with a stable funding base and credit costs.
The total operating income also reached a record level of $1,339 million, a 5% increase compared to the same period last year, despite certain exchange rate constraints on key markets. The group's balance sheet strength was maintained, with high levels of capital adequacy and liquidity ratios, while total assets reached $46 billion.
On this occasion, the Board of Directors has recommended a dividend distribution of $0.0275 per share, a 22% increase compared to the previous year, representing 30% of the net profit attributable to the parent company's shareholders, equivalent to approximately $85.5 million (2.75% of shareholders' equity). This distribution is subject to regulatory approval and will be presented for approval at the bank's Annual General Meeting.
Bank ABC has continued to make rapid progress in implementing its strategic plan, despite a challenging economic and geopolitical context, achieving significant milestones in its digital and operational transformation journey. In 2024, the bank won several awards recognizing its commitment to offering premium banking experiences based on innovation. Bank ABC was named "Best Middle East Bank for Innovation in Digital and Transactional Banking" by The Banker - Financial Times; "Best International Trade Finance Provider in the Middle East" by Global Finance and Global Trade Review (GTR); and "Best Digital Bank in Bahrain" by Euromoney. Additionally, ila Bank, the bank's mobile-only branch, won the title of "Best Digital Consumer Bank" by Global Finance for the fourth consecutive year, among other excellence awards.
The Chairman of the Board of Directors of Bank ABC, Saddek Omar El Kaber, stated:
"We are proud to have achieved these record-breaking results, with a net profit reaching historic levels. The group started the year on a strong footing and maintained the growth momentum across all activities throughout the year, achieving a 21% increase compared to the previous year. This reflects the solidity of the bank's economic model and its ability to capitalize on market opportunities, creating value for our investors.
This performance was achieved while maintaining a healthy and robust balance sheet, with solid capital adequacy and liquidity ratios. The steady and sustained progress in executing the bank's strategy, combined with the commitment and dedication of our talented teams, has enabled us to achieve these significant milestones and gain international recognition. These numerous awards reinforce our position as a 'bank of the future' in the MENA region."
Highlights of the Fourth Quarter 2024 Performance
- Net profit attributable to shareholders of the parent company reached $70 million, a 35% increase compared to the same period last year.
- Earnings per share for the quarter stood at $0.022, compared to $0.017 a year ago.
- The total operating income for the quarter was impacted by the significant devaluation of the Brazilian real against the US dollar, resulting in a loss of $48 million, compared to a profit of $84 million in the same period last year.
- The total operating income for the quarter stood at $337 million, a slight increase compared to $336 million a year ago. Excluding the exchange rate effect, the total operating income would have been $363 million, a 8% increase.
Highlights of the Full-Year 2024 Performance
- Net profit attributable to shareholders of the parent company reached $285 million, a 21% increase compared to the previous year.
- Earnings per share for the year stood at $0.086, compared to $0.070 a year ago.
- The total operating income for the year was impacted by exchange rate fluctuations, particularly the devaluation of the Egyptian pound and the Brazilian real. The net impact resulted in a loss of $12 million, compared to a profit of $258 million a year ago.
- The total operating income for the year stood at $1,339 million, a 5% increase compared to the previous year. Excluding the exchange rate effect, the total operating income would have been $1,404 million, a 10% increase, reflecting growth across almost all key markets.
Balance Sheet
- At the end of the year, shareholders' equity and perpetual instrument holders' equity stood at $4,207 million, a 2% decrease compared to the previous year, mainly due to exchange rate fluctuations and dividend distribution, partially offset by the profit realized during the year.
- Total assets reached $46,265 million, a 5% increase compared to the previous year, driven by the expansion of core activities and liquid assets, as well as balance sheet optimization and portfolio management measures.
- Capital adequacy and liquidity ratios remained healthy: Tier 1 capital ratio at 15.5%, CET1 at 13.6%. LCR and NSFR stood at 198% and 123%, respectively.
Bank ABC's Presence and Commitment
Bank ABC is a major player in the banking sector in the region, with a presence in 15 countries across five continents. It offers innovative wholesale banking solutions globally, covering conventional and Islamic finance, transactional banking, project finance, structured finance, capital markets, and real estate finance. The bank also provides retail banking services through its branch network in Jordan, Egypt, Tunisia, and Algeria, as well as through ila Bank, its mobile-only digital bank, in Bahrain and Jordan.
The full financial statements and press release are available on the Bahrain Bourse and Bank ABC's websites.
A virtual investor conference call is scheduled for February 13, 2025. For more information, please visit: www.bank-abc.com.
