Arab Banking Corp. net profit slightly drops in 1Q02
Arab Banking Corporation (ABC), the parent company of the Arab banking group headquartered in Bahrain, announced its financial results for the first quarter of 2002 with a net profit of $34 million, a marginal decline over the first quarter 2001 result of $36 million.
Total consolidated assets of the ABC Group rose by 2.7 percent to $26.7 billion in March this year from $26.0 billion a year ago and are at the same level held at the yearend 2001. The Liquid assets to deposits ratio stands at 50 percent—compared to 49 percent at yearend 2001— and loans to deposits ratio at 66 percent, compared to 67 percent at yearend 2001. The Group’s risk asset ratio was reported at 13.7 percent at March 2002, compared with the ratio of 13.9 percent at the yearend 2001.
ABC Group’s net interest income for the first quarter was three percent higher at $120 million, up from $116 million at yearend 2001, whereas non-interest income declined by 11 percent. Total income decreased marginally by two percent to $183 million, down from $186 million at yearend 2001.
Operating expenses increased by two percent to $111 million, up from $109 million at the end of the forth quarter 2001, whilst the overhead expense ratio increased marginally to 61 percent, compared to 59 percent at the end of the previous quarter. Loan loss provisions for the quarter amounted to $15 million in line with the provisions made for the same period last year.
“Given the continuing depressed state of the world economy and the lower interest rate environment the result for the quarter is entirely satisfactory. Maintaining our earnings level in the face of adversity has been a high priority over the past years and this result demonstrates the success that ABC has achieved in striving towards this goal. We are also striving to improve asset quality and further diversify income sources,” ABC President and Chief Executive Ghazi M. Abdul-Jawad said.
Established in 1980, ABC is the parent company of the Arab Banking Group. The bank was incorporated as a Bahrain joint stock company and was issued an offshore banking unit license by the Bahrain Monetary Agency in the same year. The three original shareholders were the Abu Dhabi Investment Authority, Kuwait’s Ministry of Finance and the Central Bank of Libya.
The ABC Group focuses principally on wholesale commercial and corporate banking and trade finance services. Its subsidiaries concentrate largely on exploiting opportunities in domestic retail and merchant banking sectors. Branch offices of ABC are situated in Grand Cayman, Milan, New York, Singapore and Tunis. — (menareport.com)
© 2002 Mena Report (www.menareport.com)