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Arab Banking Corporation (ABC) announces nine-month profit $112 million

Manama, Bahrain: Arab Banking Corporation today announced that its consolidated Group net profit for nine months ending 30 September 2010 was US$112 million, 40% higher than last year. Net profit for the third quarter was $37 million, 8% higher than the second quarter.
Total operating income for the third quarter of US$181 million was 2% higher than the second quarter. Group operating expenses decreased marginally to US$88 million compared to
US$90 million in the previous quarter and the cost/income ratio improved to 49% from 51%. Operating profit before impairment provisions improved 7% to reach US$93 million. Net impairment provision in the third quarter was US$20 million, compared to US$22 million in the previous quarter.

Shareholders’ equity at 30 September 2010 stood at US$3,392 million, compared to US$3,311 million at the half year, the increase of US$81 million coming from improvement in fair values of non-trading securities, foreign exchange translation and net profit for the period. ABC’s capital base remains very strong with a capital adequacy ratio of 23.6%, predominantly Tier 1, which totalled 18.9%. ABC’s liquidity remains comfortable with the liquid assets to deposits ratio at 74% compared to 76% in the previous quarter.

Mr. Hassan Juma, President & Chief Executive of ABC, said, “The continuously improving revenues reflect a healthy overall growth in the major business segments of ABC Group benefiting from the strength of its diversification by geography and product lines. We continue to remain watchful in our wholesale banking segment in the face of continuing uncertainties in the global economic environment which appear set to continue for the foreseeable future despite strong growth in the major emerging economies.”


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