Khaberni - Islamic ABC Bank announced today its financial results for the nine-month period of 2025. The bank concluded the third quarter with net profits amounting to $39.4 million compared with $37.8 million for the same period last year, despite implementing taxes on the bank valued at $6.9 million at the beginning of this year. The total operating income after accounting for profit on Murabaha and other due amounts before assignment to quasi-equity for the nine-month period ending September 30, 2025 is $138.0 million, compared with $131.3 million recorded in the same period last year. The balance sheet remained at healthy levels with a strong capital ratio maintained.
Key performance highlights:
- Net profits reached $39.4 million, an increase of 4% over the same period last year.
- The total operating income after accounting for profit on Murabaha and other due amounts before assignment to quasi-equity amounted to $138 million, an increase of 5.1% over the same period last year.
- Net income attributable to quasi-equity was $86.7 million, an increase of 8.6% over the same period last year.
- Operating expenses amounted to $7.4 million, a decrease of 34% compared with $11.3 million last year.
- The bank's capital base remains very strong, with a capital adequacy ratio of 39.4%.
In his comment on these results, Mr. Hammad Hassan, Managing Director of Islamic ABC Bank, stated: "The bank performed well registering growth in both assets and profitability despite fierce competition and the geopolitical uncertainty in the region. This sound growth in assets was supported by core client businesses and strong market sector performance, particularly in syndicated loans and debt capital markets. The bank served as a joint manager in eighteen Sukuk issuances since the beginning of the year supporting major companies, financial institutions, and notable sovereign entities. Expenses and credit costs are well managed. Thanks to the robust balance sheet and prudent risk management, the bank continues to maintain strong levels of capital and liquidity for the remainder of 2025."
Business Performance (Three-Month Period):
- Net profits for the third quarter amounted to $12.5 million compared with $12.8 million in the third quarter of the previous year.
- Operating expenses amounted to $2.3 million, compared with $2.2 million for the same period last year.
Business Performance (Nine-Month Period):
- Net profits amounted to $39.4 million, an increase of 4% compared with the same period last year.
- Recovery of loss allowances for the period was $2.6 million, compared with a provision of $2.1 million recorded during the same period last year.
- Operating expenses amounted to $7.4 million, a decrease of 34% compared with $11.3 million recorded in the previous year. After adjusting for exceptional expenses in the previous year, expenses increased by 1.6% compared to the prior period.
Balance Sheet:
- Total assets of Islamic ABC Bank as of September 30, 2025, amounted to $3.331 billion, compared with $2.865 billion at the end of 2024.
- Investments amounted to $1.4 billion, compared with $1.3 billion at the end of 2024.
- Murabaha receivables, leasing, and partnership financings amounted to $1.946 million, compared with $1,550 million at the end of 2024.
- Total equity as of September 30, 2025, was valued at $376 million, compared with $364 million at the end of 2024.
- The bank's capital base remains very strong, with an overall capital adequacy ratio of 39.4%, and a Tier 1 capital ratio of 38.7%.
