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Arab Banking Corp's H1 profit rise to $61m

DUBAI — Arab Banking Corporation, the parent company of the Arab banking group headquartered in Bahrain, yesterday announced the Group's net profit for the half year till June 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).

The total income came to $155 million (2004: US$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 to 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) and 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 percent (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.