Arab Banking Corporation BSC (ABC), the parent company of the Arab Banking Group headquartered in Bahrain, yesterday announced that the group’s net profit for the half year to June 2005 totalled $61 million.
This was an increase of 20 per cent over the comparable net profit for the same period last year of $51 million from continuing operations (excluding the profit of $455 million arising from the disposal of ABC’s subsidiaries International Bank of Asia Limited, Hong Kong, and Banco Atlantico S.A., Spain.
Total income came to $155 million (2004: $155 million) following the successful implementation of the product-based matrix management structure. A substantial improvement in asset quality resulted in a write-back of $13 million from loan recoveries, compared with the charge of $6 million for loan loss provisions in the same period last year. Operating expenses were kept under control at $93 million, slightly below last year’s level.
ABC group’s total assets amounted to $15.3 billion (2004 year-end: $14.9 billion). Liquidity remains strong, with the liquid assets to deposits ratio at 73 per cent (2004: 79 per cent). The loans to deposits ratio remained steady at 56 per cent (2004: 56 per cent). The group continues to maintain a strong capital base as evidenced by the risk asset ratio of 23.0 per cent at June 2005, compared with the ratio of 25.3 per cent at the year-end 2004, calculated in accordance with the requirements of the Bahrain Monetary Agency.
Ghazi M. Abdul-Jawad, President & Chief Executive said: “ABC’s improved net profit from continuing operations reveals the achievements of the group’s renewed focus on the Arab region and its trade flows. Our new matrix structure is building on the strengths of our core wholesale activities in trade finance, treasury operations, Islamic financial services and project finance, providing additional income streams, driving ABC to achieve its stated objectives in the future. Retail banking activities in our niche markets continues to enhance our earnings stream.”

Last update on: 1-8-2005