Arab Banking Corporation B S C · BAHRAIN:ABC
Arab Banking Corporation B S C — Q1 2022 Earnings Presentation
14 slides from Arab Banking Corporation B S C's earnings presentation, May 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentation
Slide 2: Key Messages
Key Messages ∕ Q1 2022 performance of a headline net profit of US$31m marks a solid and profitable start to 2022, achieved despite geo-political, industry and market challenges. ∕ The financial results were underpinned by our consistent strategic direction which has been refreshed to reflect our inc
Slide 3: Group Strategy Statement
Group Strategy Statement Emphasizes Digital Transformation and our Acquisition in Egypt Strategic intent MENA’s leading international Bank Values Client Centric Collaborative Consistent Build our Digital Bank Refocus our Integrate BBE to Strengthen our of the Future Wholesale Banking deepen Market O
Slide 4: Financial Highlights – Solid and Profitable Start to 2022
Financial Highlights – Solid and Profitable Start to 2022 Total Operating Income, $m Underlying* $253m $197m ∕ Underlying TOI of $253m (28% growth) reflects strong recovery across most of our markets and business lines, and benefiting from the consolidation of BBE Q1 ‘21 Q1 ‘22 Headline $182m $247m
Slide 5: Strong Headline Revenue Growth Across the Franchise
Strong Headline Revenue Growth Across the Franchise Total Operating Income(TOI), $m ∕ Underlying* TOI of $253m was 28% higher than Q1 2021 levels, reflecting strong +28% recovery across most of our markets and business lines, and benefiting from the Headline 247 253 consolidation of BBE Underlying*
Slide 6: Cost Trajectory Returning to Normal Levels
Cost Trajectory Returning to Normal Levels Operating Expenses and Cost to Income Ratio ∕ +27% headline increase in costs during Q1 2022 to $159m from a combination Operating +27% of consolidation of BBE as well as the Group Expenses, $m 159 returning to a more normal level of activity 125 44 37 15 O
Slide 7: Strong and resilient capital base, further strengthened by AT1 issuance
Strong and resilient capital base, further strengthened by AT1 issuance Overview CET1 and Tier 1 Ratios, % ⁄ The Group has concluded an AT1 capital issuance, 15.9% 16.6% further strengthening its capital position ⁄ Capital base remains strong, stable and significantly Reg. level above regulatory min
Slide 8: Well Diversified and Liquid Balance Sheet
Well Diversified and Liquid Balance Sheet Q1 2022 Assets by Instrument, $bn ⁄ Total assets stood at $34.8 billion at the end 34.9 34.8 of the period, broadly in line with the $34.9 2.5 3.1 billion at the 2021 year-end 6.4 5.6 Other 9.2 9.1 Liquid Funds(2) ⁄ More than half the Assets are maturing with
Slide 9: Cost of Risk Returning to Pre-Pandemic Levels
Cost of Risk Returning to Pre-Pandemic Levels NPLs and Coverage Ratio ⁄ NPL ratio marginal movement 3.4% 3.7% to 3.7% NPL Ratio ⁄ Loans provision coverage ratio remains strong at 107.3% Dec ‘21 Mar ‘22 Coverage Ratio* 115.4% 107.3% ⁄ ECLs during Q1 2022 were US$25 million, compared to US$20 million
Slide 10: Q1 2022 Summary
Q1 2022 Summary Net profit of US$ 31 Operating Income on an ECL charge broadly in Continuing to million marks a solid underlying basis grew line with our historic achieve major and profitable start to by +28% year on year credit loss experience delivery milestones 2022 with revenues, supported by hi
Slide 11: Appendix: Normalised Financials
Appendix: Normalised Financials US$ millions 2018 2019 2020 2021 Q1 2021 Q1 2022 Interest Income 559 564 516 592 122 177 Non-Interest Income* 309 311 233 277 75 67 Total Operating Income (TOI)* 868 875 749 869 197 244 Total Operating Expenses -474 -524 -486 -569 -125 -159 Profit Operating Profit 394
Slide 12: Appendix: Underlying Performance – Key Adjustments
Appendix: Underlying Performance – Key Adjustments Underlying Total Operating Income Q1 2021 Q1 2022 +28% Headline TOI $182m $247m $253m $197m Currency Hedge* +$15m ($3m) Normalized TOI $197m $244m FX impacts and one-offs - +$9m Underlying TOI $197m $253m Q1 ‘21 Q1 ‘22 Underlying Net Operating Profi
Slide 13: Contact us
Contact us Bank ABC Head Office P.O. Box 5698, Manama Kingdom of Bahrain For more information, contact us on InvestorRelations@bank-abc.com www.bank-abc.com 13
Slide 14: Disclaimer
Disclaimer IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Arab Banking Corporation B.S.C. ("Bank ABC") or any person acting on behalf of Bank ABC, and any question-and-answer session that follows the oral presentation (collectively, th
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