Bank ABC Islamic announces first half 2026 net profit of US$ 16.1 million

For the first half of 2026, Bank ABC Islamic reported total Operating income after profit on murabaha and other payables and before attribution to quasi-equity of US$92.5 million, up 3.2% from the same period last year, while net income attributable to quasi-equity increased by 7.9%. Net profit, however, declined by 40.3% to US$16.1 million, compared with US$26.9 million in the prior-year period, primarily due to a charge for expected credit losses versus a reversal in the same period last year. 

Key Performance Highlights

    Net profit of US$16.1 million, 40.3% lower than same period last year. 
    Total Operating income after profit on murabaha and other payables and before attribution to quasi-equity stood at US$92.5 million, 3.2% higher than the same period last year, while net income attributable to quasi-equity increased by 7.9%.  
    Operating expenses were US$5.1 million, same as corresponding period last year.

Commenting on the results, Mr. Hammad Hassan, Managing Director of Bank ABC Islamic said, “The region continues to face heightened geopolitical tensions, and our focus remains on maintaining operational resilience and the safety of our staff. With the support of our parent, Bank ABC, we have remained fully operational throughout the crisis, servicing our clients seamlessly and maintaining normal business operations.   

Our half year results show resilient top-line performance; however, our net profit reduced by 40%, in comparison to the same period 2025, mainly due to an increase in expected credit losses, compared with a provisioning reversal in the same period last year. We remain conservative in our approach towards provisioning, particularly in light of the current macro-economic environment. Our balance sheet remains healthy with strong capital ratios. 

For rest of the year, our focus will remain on maintaining our operational resilience, keeping our balance sheet healthy, and providing seamless services to our clients, who are also being adversely affected by the current circumstances. Supply chain disruption continues to impact many businesses in our region as well as globally. Maintaining the well-being of our staff also remains our key priority in these uncertain times.”

A more detailed summary of the Financial Results is explained below:

Business Performance (three-month period):

    Net profit for the second quarter was US$ 6.8 million compared to US$ 12.4 million reported in the second quarter of last year.
    Operating expenses were US$ 2.4 million, compared to US$ 2.3 million for the same period of last year.
Business Performance (six-month period):
    Net profit for the first half was US$ 16.1 million compared to US$ 26.9 million reported last year.
    Allowances for credit losses for the period were a charge of US$ 8.2 million compared to a write back of US$ 2.9 million reported during the same period last year.
    Operating expenses were US$ 5.1 million, same as corresponding period last year.

Balance Sheet:

    ABC Islamic Bank’s total assets stood at US$ 3.473 billion as of June 30, 2026, compared to US$ 3.274 billion at 2025 year-end.
    Investments were at US$ 1.481 billion, compared to US$ 1.510 billion at 2025 year-end, primarily comprised of sukuks issued by financial institutions, sovereigns and corporates.
    Murabaha receivables, Ijarah and Musharaka financing were at US$ 1,935 million, compared to US$ 1,700 million at 2025 year-end.
    Shareholders’ equity on June 30, 2026, stood at US$ 376 million, compared to US$ 383 million at 2025 year-end.
    The bank’s capital base remains very strong with a capital adequacy ratio of 33.1%, predominantly Tier 1, which totalled 32.6%.