Arab Banking Corporation announces seven percent operating income increase in 2001
Bahrain-based Arab Banking Corporation (ABC) announced a seven percent increase in its 2001 operating profit to $762 million compared to 2000. The bank’s net profit reached $102 million for 2001, stated a bank release. ABC’s Board of Directors recommended a dividend payment to shareholders of seven percent, amounting $.70 per share, the same as in the previous year.
ABC Group’s net interest income improved by eight percent reaching $469 million compared to $433 million in 2000, with the beneficial impact from a globally falling interest rate environment led by the US dollar. Non-interest income increased by five percent to $293 million compared to $280 million in 2000, largely from increased revenues from treasury activities such as derivatives and foreign exchange across the Group.
Total ABC Group assets declined slightly to $26.5 million compared to $26.6 million in 2000, reflecting the controls over asset growth that were imposed in response to the economic deterioration that occurred during the second half of 2001. Loan assets grew by only one percent, to $14.2 million and marketable securities by six percent to $3.9 million, while placements with other banks declined by nine percent to $6.4 million.
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)