Arab Bank posts around US$0.5 billion profits in half year results
Arab Bank Chairman/CEO Abdel Hamid Shoman announced that Arab Bank Group (ABG) profits before taxes and provisions for the half year ending June 30, 2007 grew to USD 495.4 million, compared to USD 427.9 million in the same period of 2006, with an increase of USD 67.5 million, at a growth rate of 15.8%.
Net profits after taxes and provisions went up by USD 34.0 million, amounting to USD 370.4 million, compared to USD 336.4 million in the same period last year, with a growth rate of 10.1%.
Shoman indicated that the bulk of these profits generated from the bank's primary sources of income, represented in the return on investments and operating revenues, a fact which underscores a quality leap in performance and excellent management of funds.
He said that by June 30, 2007, the total assets of the group grew to USD 35.7 billion, compared to USD 29.8 billion at the end of June last year. The Direct Credit facilities portfolio increased to 16.0 billion, constituting 44.7% of total assets, from USD 12.7 billion (42.6% of total assets) in the same period of last year
The total balance sheet, including contingency accounts, stood at USD 50.6 billion, rising from USD 41.7 billion recorded on June 30, 2007, with an increase of USD 8.9 billion at a growth rate of 21.2%.
Regarding liabilities, outstanding customers' deposits remained the key source of funds, growing to USD 23.5 billion and representing 65.8 % of total sources of funds. Total shareholders equity also grew in the same period by USD 725.0 million to amount to USD 6 297.7 million, constituting 17.6% of total assets, a matter, Shoman said, which has enhanced capital adequacy, standing by the end of June 2007 at 22.6% . Meanwhile, the ABG maintained its liquidity ratio, which stood midyear at 47.7%.
These results reflected positively on performance indicators of the bank and the Group. Return on assets reached 2.1%, while performance efficiency, represented in the operating expenses to total revenues ratio was 43.5%.
Shoman expected all units of the Arab Bank to achieve the same positive results for the rest of the year.
© 2007 Al Bawaba (www.albawaba.com)