ABC reports $74 million profit for first half of 2001
Arab Banking Corporation (B.S.C.), the parent company of the Arab banking group head quartered in Bahrain, reported a net profit of $74 million for the first half of 2001
Arab Banking Corporation (B.S.C.), the parent company of the Arab banking group head quartered in Bahrain, reported a net profit of $74 million for the first half of 2001, an increase of 10% from $67 million in 2000.
While the bank’s bottom line experienced positive gains, the total assets of ABC Group assets declined 3%, from $26,676 million to $25,743 million. ABC's liquidity remained strong, with the ratio of liquid assets to deposits at 51% and loans to deposits ratio at 66%. However, term financing decreased by 5% to $1,614 million.
“So far this year there has been considerable turmoil in international markets, and the economies of the US, Euro-zone and UK have declined. More recently financial markets in Latin America have experienced substantial difficulties. Despite these adverse events, we have met our targets for the first half and remain on track to meet our goals for the year. Because of ABC's improving results several international rating agencies have recently upgraded their ‘outlook’ rating to ‘positive’,” said Ghazi M. Abdul Jawad, president & chief executive of ABC.
The group’s shareholder funds stand at to US$1,862 million (December 2000: $1,904 million), reflecting the income recorded for the first half, due to dividend payouts to shareholders, and IAS39 and foreign exchange translation adjustments.
The Group continues to maintain a strong capital base as evidenced by the high-risk asset ratio of 14.1%. Net interest income for the period January to June 2001 increased by 11% to $233 million (2000: $210 million), while non-interest income increased by 1% to $154 million (2000: $152 million). Consolidated expenses increased by 5% to $228 million (2000: $218 million). Operating profit increased by 10% to $159 million (2000: $144 million), and loan loss provisions were reduced by 13% to $34 million (2000: $39 million).