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Arab Banking Corporation (ABC) announces half–year profit of US$105 million
2012-07-22

 

 
Mr. Hassan Juma, President & Chief Executive of ABC Mr. Saddek El Kaber, ABC's Chairman

Mr. Hassan Juma,
President & Chief Executive of ABC

Mr. Saddek El Kaber,
ABC's Chairman

Manama, Bahrain: Arab Banking Corporation today announced that its consolidated Group net profit for the first half of 2012 was US$105 million. Net profit for the second quarter was US$51 million compared to US$54 million in the first quarter of 2012. Total operating income amounted to US$193 million, below US$214 million in the first quarter, mainly due to lower interest rates and exchange rate changes in Brazil even as income from lending activities increased on the back of higher volumes whilst trade finance activities continued to remain high. Total operating expenses were US$103 million compared to US$99 million and net impairment provisions were US$13 million against US$15 million in the previous quarter.

Shareholders’ equity at 30 June 2012 stood at US$3,672 million, compared to US$3,674 million at the end of the first quarter, the decrease occurring mainly due to exchange translation on foreign subsidiaries following the rise in US dollar.  ABC’s capital base remains very strong with a capital adequacy ratio of 23.0%, predominantly Tier 1, which totalled 18.6%. ABC’s liquidity remains very comfortable with deposits increasing by over US$ 1 billion and Repo funding dropping by US$2 billion during 2012. ABC Group’s total assets stood at US$24.4 billion at the end of the half year compared to US$25.9 billion at the end of the first quarter 2012.

Mr. Hassan Juma, President & Chief Executive of ABC, said, “In spite of the volatile markets and weak business sentiment across several countries, we are pleased to report another profitable quarter, for the fourth year running, with all ABC units contributing to this success.“

ABC's Chairman, Mr. Saddek El Kaber stated, “ABC’s performance has been excellent. With its strong capital and exceptional liquidity and funding position in tough markets, the bank is well positioned to expand organically and through acquisitions to further enhance its geographical reach.”

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