Manama, Bahrain: Bank ABC Group has achieved a robust net profit, attributable to shareholders, of US$194 million, for the financial year of 2019.
The Group in a statement said that it had posted strong financials with strong underlying asset, revenue and profit growth despite continuing challenging external market conditions. The year was marked with persistent trade tensions between the US and China, declining interest rates and global growth concerns, which together with an uncertain political situation in some of ABC’s key markets, dampened economic growth and demand for credit. However, ABC successfully weathered these conditions and invested significantly into its digital transformation journey, leading to the ground-breaking launch of its world-class digital, mobile-only ‘ila Bank’ in Q4 2019.
Consolidated net profit attributable to the shareholders of the parent, for the fourth quarter of 2019 was US$33 million, 23% lower compared to US$43 million reported for the same period last year, reflecting variations in impairment charges and costs primarily related to investment and inflation.
Consolidated net profit attributable to the shareholders of the parent, for the year of 2019 was US$194 million, which on a headline basis, was a 4% reduction to the US$202 million reported for the previous year. However, on an underlying basis, factoring in FX and other significant one-off items net profit grew by 2%.
Total assets stood at US$30.1 billion at the 2019 year-end, compared to US$29.5 billion at the 2018 year-end. Loans and advances grew by a healthy rate of 11% during the year to US$16.5 billion, after absorbing FX impact, in evidence of strategic plans working and boosting our coverage capabilities while still maintaining our continuing emphasis on prudent use of balance sheet.
On this occasion, the Board of Directors recommend, for approval at the Annual General Meeting to be held on 29 March 2020 in Bahrain, a cash dividend distribution of 3% (US$0.03 per share, net of treasury shares), amounting to approximately US$93 million and translating to approximately 48% of the net profit for the year, attributable to the shareholders of the parent.
2019
“Notwithstanding the challenging external conditions, 2019 has witnessed a good underlying revenue and asset growth for Bank ABC without compromising on our strong balance sheet and conservative credit risk management approach. We remained focused on delivering our strategy, recognising the disruptive forces at play in our industry, and the need to transform and build Bank ABC for the future. I am particularly pleased and proud of the launch of our mobile-only ila Bank, which is already being received with great enthusiasm from our customers and other stakeholders in Bahrain,” Saddek Omar El Kaber, Bank ABC’s Group Chairman, said.
