US$ MILLION
Three months ended 31 March

2004

2003*
Restated

2003**
Restated

OPERATING INCOME

Interest income

115 

148 

275 

Interest expense

(81)

(102)

(159)

Net interest income

(81)

46 

 116 

Other operating income

43 

42 

95 

TOTAL OPERATING INCOME

77 

88 

211 

Provision for losses on loans and advances, net of recoveries

77 

(6)

(23)

NET OPERATING INCOME AFTER PROVISIONS

70 

82 

188 

OPERATING EXPENSES

Staff

27 

29 

72 

Premises and equipment

6 

6 

16 

Other

13 

10 

30 

Total operating expenses

46 

45 

118 

PROFIT BEFORE TAXATION AND MINORITY INTERESTS

24 

37 

70 

Taxation on foreign operations

(4)

(6)

(14)

Minority interests in subsidiaries

2 

(2)

(11)

NET PROFIT FROM CONTINUING OPERATIONS

22 

29 

Discontinued operations (subsidiaries sold in 2004)

Profit from discontinued operations
  - net of tax 2004: US$ 303 million; 2003: US$ 8 million

455 

25

Minority interests

-- 

(9)

NET PROFIT FROM DISCOUNTINUED OPERATIONS

455 

16 

NET PROFIT FOR THE PERIOD

477 

45 

45 

EARNINGS PER SHARE (expressed in US dollars)

5.07 

0.48 

* 2003 comparatives split between continuing and discontinued operations (the subsidiaries sold in 2004).
** 2003 comparatives incorporating the results of the subsidiaries sold in 2004

The above Consolidated Statement of Income has been extracted from the interim condensed consolidated financial statements of Arab Banking Corporation (B.S.C.) for the period ended 31 March 2004, reviewed by Ernst & Young, Kingdom of Bahrain.