Arab Banking Corporation B S C · BAHRAIN:ABC

Arab Banking Corporation B S C — Q1 2023 Earnings Presentation

14 slides from Arab Banking Corporation B S C's earnings presentation, Dec 4, 2023

  1. Slide 1: Q1 2023 Results Presentation

    Q1 2023 Results Presentation 1

  2. Slide 2: Q1 2023 key highlights

    Revenues $299 Net profit US$ 60 million Healthy Balance Sheet Continuing to achieve +94% YoY major delivery +21% YoY T1 Ratio 15.4%, NSFR 125% milestones in building our RoE 5.8%, ~ +2% YoY Bank of the Future Strong momentum backed by Net Operating Income +42% YoY. Capital and Liquidity metrics Digi

  3. Slide 3: Consistent Strategic Direction: Digital Transformation and Acquisition in Egypt

    Consistent Strategic Direction: Emphasizes Digital Transformation and our Acquisition in Egypt Strategic Intent MENA’s leading international Bank Values Client centric Collaborative Consistent Build our Digital Bank of the Refocus our Wholesale Banking Integrate BBE to deepen Strengthen our Organiza

  4. Slide 4: Bank ABC Keeps leading innovation in MENA

    Bank ABC Keeps leading innovation in MENA 4

  5. Slide 5: Strong Q1 with Net Profit at $60m, a growth of 94% YoY

    Strong Q1 with Net Profit at $60m, a growth of 94% YoY Total Operating Income, $m +21% 299m 247m ∕ $299m, 21% 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 Q1 22 Q1 2

  6. Slide 6: Strong Revenue Growth Across the Franchise

    Strong Revenue Growth Across the Franchise ∕ TOI reached $299m during Q1 23, 21% higher on a TOI by business (Q1 23), $m YoY basis, continue to be well diversified growth across our markets and business lines 14.7% 33.1% 8.4% ABC Brasil MENA Subsidiaries International Wholesale Bank ∕ Net interest i

  7. Slide 7: Cost to Income ratio improved 6%

    Cost to Income ratio improved 6% The Group continues to enforce appropriate cost discipline Operating Expenses and Cost to Income Ratio without compromising on investments into the Group’s +9.5% digital transformation and strategic initiatives to build its 174 159 “Bank of the Future”. 53 Other Cost

  8. Slide 8: Healthy Capital Ratios, well above Regulatory minimum

    Healthy Capital Ratios, well above Regulatory minimum Overview CET1 and Tier 1 Ratios, % 15.7% 15.4% ⁄ Capital base remains strong 10.5% ⁄ CET 1 Ratio (13.7%) comprises the majority of Tier 1 Ratio ⁄ Total CAR of 16.4% as at Mar 23 ⁄ RWA stood at $28bn as of Mar 23, growing by 2% from YE Dec-22 Mar-

  9. Slide 9: ECL, adjusting from one off fraud event, in line with trends

    ECL, adjusting from one off fraud event, in line with trends ECL and cost of risk, $m, bps +71% ⁄ ECL and cost of risk impacted by Americanas1 43 Company Fraud event impacting our business in Brasil customer fraud ⁄ Adjusting for the fraud event, underlying cost of 25 32 related in Brasil credit in

  10. Slide 10: Well Diversified and Liquid Balance Sheet

    Well Diversified and Liquid Balance Sheet March 23 Assets by Instrument, $bn ⁄ Total assets as of Mar 23 at $34.6 billion reducing 5% from YE 2022 levels, primarily reflecting short term 36.6 34.6 3.3 3.5 Other liquidity management actions 6.5 5.1 Liquid Funds(2) ⁄ Book continues to be positioned wit

  11. Slide 11: In Summary …

    In Summary … ∕ Q1 2023 net profit of $60m, a surge of 94% on a YoY basis providing a strong start to 2023. ∕ The Group’s total operating income for Q1 2023 at $299m, a 21% growth YoY, with momentum set to continue from core business growth. ∕ Operating expenses were at $174m, 9.5% higher YoY but wit

  12. Slide 12: Appendix: Normalised Financials

    Appendix: Normalised Financials US$ millions 2019 2020 2021 2022 Q1 22 Q1 23 Interest Income 564 516 592 786 177 223 Non-Interest Income* 311 233 277 314 70 76 Total Operating Income (TOI)* 875 749 869 1,100 247 299 Profit Total Operating Expenses Operating Profit -524 351 -486 263 -569 300 -690 410

  13. Slide 13: Contact us

    Contact us For more information, Bank ABC Head Office contact us on P.O. Box 5698, Manama Kingdom of Bahrain [email protected] www.bank-abc.com 13

  14. 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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