(US$ million)

Three months
1 April to 30 June

Six months
1 January to 30 June

2004

2003
(Restated)

2004

2003
(Restated)

OPERATING INCOME

Interest income

115 

127 

230 

275 

Interest expense

(79)

(90)

(160)

(192)

Net interest income

36 

37 

 70 

83 

Other operating income

42 

67 

85 

109 

Total operating income

78 

104 

155 

192 

Provision for losses on loans and advances, net of recoveries

1 

(8)

(6)

(14)

NET OPERATING INCOME AFTER PROVISIONS

79 

96 

149 

178 

OPERATING EXPENSES

Staff

29 

37 

56 

66 

Premises and equipment

6 

6 

12 

12 

Other

13 

11 

26 

21 

Total operating expenses

48 

54 

94 

99 

PROFIT BEFORE TAXATION AND MINORITY INTERESTS

31 

42 

55 

79 

Taxation on foreign operations

- 

(5)

(4)

(11)

Minority interests in subsidiaries

(2)

- 

- 

(2)

NET PROFIT FROM CONTINUING OPERATIONS

29 

37 

51 

66 

Discontinued Operations
(subsidiaries sold in 2004)
Profit from discontinued operations
- net of tax 2004: US$ 303 million;
2003: US$ 17 million

- 

20 

455 

45 

Minority Interests

- 

(6)

- 

(15)

NET PROFIT FROM DISCONTINUED OPERATIONS

- 

14 

455 

30 

NET PROFIT FOR PERIOD

29 

51 

506 

96 

EARNINGS PER SHARE (expressed in US$)

0.31 

0.54 

5.38 

1.02 

The above Consolidated Statement of Income has been extracted from the interim condensed consolidated financial statement of Arab Banking Corporation (B.S.C.) for the period ended 30 June 2004, reviewed by Ernest & Young, Kingdom of Bahrain.