Arab Banking Corporation B S C · BAHRAIN:ABC
Arab Banking Corporation B S C — Bank ABC — H1 2023 Earnings Presentation
13 slides from Arab Banking Corporation B S C's earnings presentation, Dec 6, 2023
Slide 1: H1 2023 Results Presentation
H1 2023 Results Presentation 1
Slide 2: H1 2023 Performance at a Glance
H1 2023 Performance at a Glance Al BankABc SS Revenues $611 m SSz S52 +18% YoY Strong momentum backed by Core business growth and rising interest rates Healthy Balance Sheet T1 Ratio 15.2%, NSFR 123% Capital and Liquidity metrics remain strong with healthy buffers to maintain growth momentum Net pro
Slide 3: Strong H1 with Net Profit at $121m, a growth of 72% YoY
Strong H1 with Net Profit at $121m, a growth of 72% YoY Total Operating Income, $m +18% 611m 520m ∕ $611m, 18% growth on a YoY basis benefitting from underlying business growth propelled further by higher interest rates. ∕ Revenues tracking higher on a YoY basis across almost all our units H1 22 H1
Slide 4: Strong Revenue Growth Across the Franchise
Strong Revenue Growth Across the Franchise ∕ TOI reached $611m during H1 23, 18% higher on a TOI by business (H1 23), $m YoY basis, and was well diversified across our 15.6% ABC Brasil markets and business lines MENA Subsidiaries 32.1% 8.3% International Wholesale Bank Group Treasury Other** ∕ Net i
Slide 5: Cost to Income ratio improved
Cost to Income ratio improved The Group continues to enforce appropriate cost discipline Operating Expenses and Cost to Income Ratio without compromising on investments into the Group’s +10% digital transformation and strategic initiatives to build its 364 331 “Bank of the Future”. 116 Other Cost 10
Slide 6: Healthy Capital Ratios, well above Regulatory minimum
Healthy Capital Ratios, well above Regulatory minimum Overview CET1 and Tier 1 Ratios, % 15.7% 15.2% ⁄ Capital base remains strong 10.5% ⁄ CET 1 Ratio (13.6%) comprises the majority of Tier 1 Ratio ⁄ Total CAR of 16.3% as at June 23 ⁄ RWA stood at $28.9bn as of June 23, growing by 5% from Dec-22 Jun
Slide 7: Underlying ECL and cost of risk improved YoY
Underlying ECL and cost of risk improved YoY ECL and cost of risk, $m, bps +43% ⁄ Underlying Cost of risk at 40bps, better on a YoY 73 basis due to benign provision experience across all other business and units 51 35 customer fraud related in Brasil ⁄ Headline ECL and cost of risk impacted by one-o
Slide 8: Well Diversified and Liquid Balance Sheet
Well Diversified and Liquid Balance Sheet ⁄ Total assets as of June 23 at $41.0 billion, crossing $40 June 23 Assets by Instrument, $bn billion for the first time in history, 12% higher than YE 41.0 2022 levels, primarily reflecting increase in marketable 36.6 3.8 Other 3.3 7.5 Liquid Funds(2) securi
Slide 9: Industry Awards: Top industry awards for pathbreaking innovations, transactions
Industry Awards: Top industry awards for pathbreaking innovations, transactions Bank ABC continues to attain top industry awards for its pathbreaking innovations and landmark transactions, reinforcing its position as MENA’s leading international bank. The Bank won the below awards in H1 2023. ABC La
Slide 10: In Summary …
In Summary … ∕ H1 2023 net profit of $121m, a surge of 72% on a YoY basis providing a strong performance for 2023. ∕ The Group’s total operating income for H1 2023 at $611m, a 18% growth YoY, with momentum set to continue from core business growth and benefitted from strong interest rates. ∕ Operati
Slide 11: Appendix: Normalised Financials
Appendix: Normalised Financials US$ millions FY 2019 FY 2020 FY 2021 FY 2022 H1 2022 H1 2023 Interest Income 564 516 592 786 370 444 Non-Interest Income* 311 233 277 314 150 167 Total Operating Income (TOI)* 875 749 869 1,100 520 611 Profit Total Operating Expenses Operating Profit -524 351 -486 263
Slide 12: Contact us
Contact us For more information, Bank ABC Head Office contact us on P.O. Box 5698, Manama Kingdom of Bahrain InvestorRelations@bank-abc.com www.bank-abc.com 12
Slide 13: 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