2003

2002
Restated

(US$ million)       

OPERATING INCOME

Interest income

1,033 

1,175 

Interest expense

(596)

(711)

Net interest income

437 

464 

Other operating income

461 

257 

TOTAL OPERATING INCOME

898 

721 

Provision for losses on loans and advances, net of recoveries

(175)

(204)

NET OPERATING INCOME AFTER PROVISIONS

723 

517 

OPERATING EXPENSES

Staff

330 

298 

Premises and equipment

70 

61 

Other

144 

132 

Total operating expenses

544 

491 

PROFIT BEFORE TAXATION AND MINORITY INTERESTS

179 

26 

Taxation on foreign operations

(30)

(37)

Minority interests in subsidiaries

(29)

(30)

NET PROFIT (LOSS) FOR THE YEAR

120

(41) 

BASIC EARNINGS PER SHARE (expressed in US dollars)

1.27

(0.44) 

The above Consolidated Statement of Income has been extracted from the Consolidated Financial Statements of Arab Banking Corporation (B.S.C.) for the year ended 31 December 2003, on which an unqualified audit opinion was issued by Ernst & Young, Bahrain, on 15 February 2004.