ABC’s net profits reach $27 million in 1Q 2003
Bahrain’s Arab Banking Corporation (ABC) recorded $27 million in net profits in the first quarter of 2003. The Group’s operating profit increased by 15 percent to $82 million compared to $71 million in March last year.
Earnings stream continues to strengthen with its total income increasing by 10 percent to $200 million. Net interest income for the first quarter was marginally lower than last year at $116 million, mainly resulting from the continued low interest rate environment. However, boosted by higher earnings from loan fees, treasury and securities trading activities, non-interest income increased by 33 percent to $84 million.
Operating expenses increased by six percent to $118 million due to the translation impact from the strengthening of the euro, however, the overhead expense ratio improved to 59 percent from the increase in revenues.
ABC Group’s total assets rose by six percent to $28.4 billion in March this year from $26.7 billion a year ago. Liquidity remained strong with liquid assets to deposits ratio at 51 percent and loans to deposits ratio at 68 percent. The Group continues to maintain a strong capital base as evidenced by the risk asset ratio of 14 percent at March 2003, compared with the ratio of 13.2 percent at the year end 2002. — (menareport.com)
© 2003 Mena Report (www.menareport.com)