10/02/2026 04:14 AST
Bank ABC (Arab Banking Corporation) has announced a record total operating income of $1.41 billion, a 5% headline growth YoY, and 7% on an underlying constant currency basis.
This revenue momentum, together with disciplined management of operating expenses, drove a strong net operating profit. However, net profit attributable to the shareholders of the parent of $257 million, was a decline of 10% on a headline basis and 7% on a constant currency basis, being impacted by a combination of an increased Q4 loan loss provision charge, due to a US client credit event, and domestic minimum top-up taxes in Bahrain and Brazil, the bank said.
Across Bank ABC's global franchise, the year was marked with heightened geopolitical uncertainty, shifting monetary conditions and evolving trade dynamics. Against this complex external environment, the group demonstrated strong operational resilience, delivering record levels of top line revenue, operating profit and total assets, while maintaining a strong balance sheet and continuing to execute our strategic roadmap with discipline and focus, it said.
Total assets reach a historic high
On the balance sheet, total assets also reached a historic $50 billion, driven by loan growth and treasury activities, while capital and liquidity metrics were maintained at robust levels. Overall, the strong diversified revenue growth, robust balance sheet performance and resilient net profit result, demonstrates the Group's capacity to absorb both external economic uncertainly and specific risk events.
Given the group's balance sheet strength, the Board of Directors recommended a cash dividend distribution of $0.0275 per share totalling $85.5 million (2.75% of equity capital), maintained at the same level as last year, which increases payout levels to 33% of profit attributable to the shareholders of parent. This reflects confidence in the Group's capital strength, earnings resilience and forward outlook, and is subject to relevant regulatory approvals and approval at the Bank's Annual General Meeting.
Bank ABC's business excellence, and leadership in innovation were recognised by several distinguished regional and international awards platforms. Notable awards included the 'Transaction Bank of the Year for the Middle East' by the Banker (FT), and the 'Best Bank for Cross-Border Payments Solutions in Middle East and Africa' and the 'Best Cash Management Bank in Bahrain and Tunisia' by Global Finance Best Treasury & Cash Management providers Awards 2025. The Bank also won the 'World's Best Financial Innovation Lab Award', while its digital subsidiary, ila Bank, won the 'Best Mobile Banking App in the Middle East' by Global Finance World's Best Digital Bank Awards 2025.
Bank ABC's Group Chairman Naji Belgasem remarked: "The group closed 2025 with a performance that demonstrates the resilience and depth of our franchise, despite a year that encountered volatile geopolitical dynamics and broader economic challenges. Our diversified model delivered record levels of revenue, operating profit and total assets, sustaining the Group's growth momentum and balance sheet strength. While headline net profit was moderated as noted, our core businesses continued to grow supported by strong client activity, and we continued to make excellent progress on our strategy as MENA's International Bank of the Future"
Performance Highlights for the fourth quarter
- Consolidated net profit attributable to the shareholders of the parent, was $53 million, 24% lower compared to $70 million reported for the same period last year, primarily impacted by higher impairment provisions, particularly from a US customer credit event.
- Earnings per share for the three-month period was $0.017 per share, compared to $0.022 per share in the same period last year.
- Total comprehensive income attributable to the shareholders of the parent was a positive $30 million compared to a negative $48 million, reported for the same period last year. Total comprehensive income in Q4 2024 was largely impacted by the sharp devaluation of the Brazilian Real against the US$.
- Total operating income for Q4 2025 was $377 million, 12% higher compared to $337 million reported for the same period last year. After adjusting for FX translation effects, mainly from EGP and BRL depreciation, underlying total operating income would have been US$366 million, 9% higher compared to the same period last year.
Trade Arabia
Please wait...
