ABC records $51 million net loss in 2002
The Arab Banking Corporation (ABC)’s recorded a net loss of $51 million in 2002, compared to the net profit for 2001 of $102 million. Loan loss provision requirements were higher because of the prevailing poor economic climate, and totaled $237 million.
The company’s operating profit before provisions, tax and minority interests for 2002 totaled $253 million, compared to $288 million in 2001. ABC Group’s net interest income reached $452 million compared to $469 million in 2001, largely due to the impact of low interest rates throughout the year. Non-interest income remained steady at $292 million.
All areas of the Group’s operations are constantly being reviewed to optimize return on investment. In 2002, the Group further rationalized its representation by closing the Los Angeles representative office, its activities being transferred to the New York branch. Additionally, ABC Securities (Egypt) was scaled back, with the emergence of ABC Egypt, the Group’s retail bank that started operations in 2000.
Established in 1980, ABC, the parent company of the Arab Banking Group headquartered in Bahrain, recorded $55 million in net profits in the first three months of 2002, compared with a net profit of $103 million for the corresponding period last year. ABC’s original shareholders were Abu Dhabi Investment Authority, the Ministry of Finance of Kuwait and the Libyan Secretariat of Treasury (later the Central Bank of Libya). In 1990, ABC listed its shares on the Bahrain and Paris stock exchanges. — (menareport.com)
© 2003 Mena Report (www.menareport.com)