Groupe Bank ABC (Arab Banking Corporation B.S.C.) - Bahrain Bourse Commercial Code "ABC" - Publishes its Financial Results for the First Half of 2025
Bank ABC has maintained its resilient performance despite the ongoing uncertainty in the global economy, with a net profit of $152 million in the first half of 2025, representing a 1% growth compared to the same period last year. After adjusting for exchange rate differences, the underlying net profit* increased by 9%, reflecting a solid and diversified performance of the Group's core business, supported by well-managed credit costs. The Group's total assets reached a historic high of $48 billion, driven by a combination of the dynamic performance of the core business, exchange rate movements, and portfolio management activities. The Group has continued to maintain a robust capital base and liquidity reserves.
During the first half of 2025, Bank ABC won several prestigious awards, including "Bank of the Year for the MENA Region for Cash Management" awarded by MEED for excellence in banking in the MENA region, and "Best Bank for Sustainable Finance" and "Best Digital Bank in Bahrain" awarded by Euromoney. Additionally, the Bank was named "Retail Bank of the Year for the MENA Region" by MEED and "Best Digital Bank in Bahrain" by Euromoney. Bank ABC Islamic was also recognized as "Best Sukuk House in Bahrain" by Euromoney.
The Chairman of the Board of Directors of Groupe Bank ABC, His Excellency Mr. Naji Belgasem, stated, "The Group has achieved solid results in the first half of 2025, particularly considering the turbulent geopolitical environment prevailing during this period. This demonstrates Bank ABC's diversified economic model and targeted execution of its strategy, enabling the Group to capitalize on market opportunities across its international franchise while maintaining a focus on a healthy balance sheet. The commercial outlook appears solid, supporting confidence in the revenue dynamics and creating sustainable value for all our shareholders for the rest of the year."
A detailed summary of the financial results is explained below:
Highlights of Performance for the 2nd Quarter 2025
- The consolidated net profit attributable to the parent company's shareholders for the second quarter of 2025 increased by 1% to $76 million, compared to $75 million reported for the same period last year.
- The underlying net profit* growth, adjusted for exchange rate differences, was 5%.
- Earnings per share for the period were $0.024, unchanged from the same period last year.
- The total comprehensive income attributable to the parent company's shareholders increased to $99 million, compared to a negative result of $28 million reported for the same period last year. The second quarter of 2025 benefited from the strengthening of currencies (particularly the Brazilian real) against the US dollar, compared to the second quarter of 2024, which was impacted by the devaluation of the Brazilian real against the US dollar.
- The total operating income for the second quarter of 2025 increased by 3% to $340 million, compared to $331 million reported for the same period last year. The underlying operating income* for the second quarter of 2025 increased by 7% to $353 million, compared to $331 million reported for the same period last year, after adjusting for exchange rate differences.
Highlights of Performance for the 1st Half of 2025
- The consolidated net profit attributable to the parent company's shareholders for the first half of 2025 increased by 1% to $152 million, compared to $150 million reported for the same period last year. The underlying net profit* growth, adjusted for exchange rate differences, was 9%, supported by a combination of higher average asset volumes and stable credit costs.
- Earnings per share for the period were $0.046, unchanged from the same period last year.
- The total comprehensive income attributable to the parent company's shareholders increased to $253 million, compared to a negative result of $56 million reported for the same period last year. The first half of 2024 was impacted by the devaluation of the Egyptian pound and the Brazilian real against the US dollar.
- The total operating income for the first half of 2025 decreased by 1% to $672 million, compared to $674 million reported for the same period last year. The underlying operating income* for the first half of 2025 increased by 6% to $713 million, compared to $674 million reported for the same period last year, after adjusting for exchange rate differences, reflecting a broad-based growth across almost all key markets.
Balance Sheet
- The shareholders' equity and perpetual instrument holders' interests at the end of the period stood at $4,363 million, compared to $4,207 million reported at the end of 2024, after absorbing the impact of dividend payments.
- The total assets increased by 4% to $48.0 billion, compared to $46.3 billion reported at the end of 2024, driven by the growth of the core business, exchange rate movements, and portfolio management activities.
- The Group maintains a healthy capital adequacy ratio, with a Tier 1 ratio of 14.8%, including a CET1 ratio of 13.0%. The Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) stood at 177% and 121%, respectively.
Bank ABC is a major player in the banking sector in the MENA region, with a presence in 15 countries across five continents. The Bank offers innovative global banking solutions in conventional and Islamic finance, transactional banking, project and structured finance, capital markets, and real estate finance to corporations and financial institutions. Bank ABC also provides retail banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and via ila Bank, its exclusively mobile digital bank, in Bahrain and Jordan.
The full financial statements and press release are available on the Bahrain Bourse and Bank ABC websites. Further details are provided in the investor presentation, published on Bank ABC's website. Bank ABC will host a virtual investor conference call to discuss the first half 2025 results on August 18, 2025. For more information, please visit the Bank's website: www.bank-abc.com.
