Bank ABC\u00a0continued its strong performance with an\u00a0H1 net profit of US$150\u00a0million, a 24% growth over the corresponding period last year, driven by\u00a0a\u00a010%\u00a0increase year on year (YOY)\u00a0in total operating income\u00a0from\u00a0core business\u00a0growth\u00a0and\u00a0higher average asset\u00a0volumes,after absorbing\u00a0the\u00a0impact of EGP depreciation,\u00a0underpinned by\u00a0bothoperating expenses and cost of credit\u00a0being well controlled. The Group\u2019s\u00a0balance sheet strength was also maintained, with capital andliquidity ratios at\u00a0robust\u00a0levels, while total assets reached\u00a0US$44\u00a0billion.<\/p>\n\n\n\n
During the period, Bank ABC received a number of prestigious industry awards, including \u2018Best Trade Finance Bank in the Middle East\u2019 by GTR, \u2018Best Islamic Financial Institution in Bahrain\u2019 by Global Finance, and \u2018Bahrain\u2019s Best Digital Bank\u2019 by Euromoney. In addition ila, Bank ABC\u2019s digital mobile-only retail bank, was named the \u2018Fastest-Growing Digital Bank in MENA Central\u2019 by Mastercardand the \u2018Best Digital Bank in Bahrain\u2019 by MEED.<\/p>\n\n\n\n
Moreover, the Bank was recognised for its leading role in several landmark transactions, notably \u2018Global Sukuk Deal of the Year\u2019 for the US$1 billion Sukuk issuance for Energy Development Oman and \u2018Global Sukuk Deal of the Year\u2019 for the US$1 billion Sukuk issuance for the Ministry of Finance & National Economy of the Kingdom of Bahrain. <\/p>\n\n\n\n
Bank ABC’s Group Chairman, Mr. Saddek Omar El Kaber remarked<\/strong>, \u201cThe Group has continued its excellent performance throughout the first half of the year, which reflects its broad- basedbusiness model that leverages market opportunities across the Group\u2019s international franchise. The Group\u2019s balance sheet remains healthy and robust, with strong capital and liquidity ratios. The accelerated implementation of our strategy positions the Group for additional growth momentum during the rest of the year, as we further anchor our position as \u201cMENA\u2019s International Bank of the Future.\u201d <\/p>\n\n\n\n Detailed summary of the Financial Results is explained below:<\/p>\n\n\n\n Q2 <\/strong>2024<\/strong> Performance Highlights<\/strong><\/p>\n\n\n\n \u25aa Consolidated net profit attributable to the shareholders of the parent, for Q2 2024 was US$75 million, 23% higher compared to US$61million reported for the same period last year. <\/p>\n\n\n\n \u25aa Earnings per share for the period was US$0.024, compared to US$0.020 in the same period last year.<\/p>\n\n\n\n \u25aa Total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of Brazilian Real against the US$, and changes in the fair valuations of our bond portfolio during the quarter. Net effect of these on total comprehensive income was a negative of US$28 million compared to a positive US$110 million, reported for the same period last year.<\/p>\n\n\n\n \u25aa Total operating income for Q2 2024 was US$331 million, 6% higher compared to US$312 million reported for the same period last year.<\/p>\n\n\n\n H1 2024<\/strong> Performance Highlights<\/strong><\/p>\n\n\n\n \u25aa Consolidated net profit attributable to the shareholders of the parent, for H1 2024 was US$150 million, a growth of 24% compared to US$121 million reported last year, driven by a combination of core business growth across many markets, higher average asset volumes and steady cost of credit. <\/p>\n\n\n\n \u25aa Earnings per share for the period was US$0.046, compared to US$0.036 in the same period last year.<\/p>\n\n\n\n \u25aa Total comprehensive income attributable to the shareholders of the parent was affected by the devaluation of Egyptian pound and Brazilian Real against the US$. Net impact of these on the total comprehensive income was a negative of US$56 million, compared to a positive US$109 million reported during the same period last year (when the currencies remained broadly stable).<\/p>\n\n\n\n \u25aa Total operating income for H1 2024 was US$674 million, 10% higher compared to US$611 million reported last year, reflecting broad based growth across almost all the core markets.<\/p>\n\n\n\n Balance Sheet<\/strong><\/p>\n\n\n\n \u25aa Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was US$4,173 million, compared to US$4,300 million reported at the 2023 year-end, 3% lower after absorbing dividend payments and the impact of EGP and BRL devaluation. <\/p>\n\n\n\n \u25aa Total assets stood at US$44.3 billion at the end of the period, as compared to US$43.9 billion reported at the 2023 year-end, an increase of 1% driven by core business and growth, balance sheet optimization and portfolio management actions.<\/p>\n\n\n\n \u25aa <\/a>Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 14.5%, of which CET1 at 12.8%. <\/a>LCR and NSFR at 233% and 123% respectively.<\/p>\n\n\n\n Bank ABC is a leading player in the region\u2019s banking industry, with presence in 15 countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured finance, Capital Markets, Financial Markets, Real Estate finance to corporates and financial institutions. It also provides retail banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan.<\/p>\n\n\n\n