ABC posts Q1 net profit of $48 million
Manama, April 17, 2011
Arab Banking Corporation (ABC) reported consolidated group net profit of $48 million for the first quarter of 2011, 17 per cent higher than the same period last year.
Total revenues amounted to $197 million, well above the $170 million generated in the first quarter of last year. Increased income from loans coupled with higher interest rates contributed to the $27 million increase in total revenues.
Operating expenses totalled $99 million, compared to $88 million for the same period last year with Cost/Income ratio declining to 50 per cent from 52 per cent last year.
Impairment provisions totalled $7 million net of recoveries, compared to $12 million last year despite additional reserves being prudently created this quarter for exposures in MENA, the bank said.
ABC Group’s total assets stood at $28.3 billion at the end of the first quarter compared to $28.1 billion at year-end 2010 representing a very modest growth in loans and a reduction in securities as the bank increased its liquid reserves.
“As noted in recent press releases, ABC is not subject to sanctions relating to the ownership of the Central Bank of Libya but scrupulously complies with all sanctions regimes and thus has lost a certain amount of its Libyan business. We are taking steps to replace this business with other customers and geographies. In addition, the group operates or undertakes business in several countries in the Mena region in which serious social and political unrest has occurred over the course of the first quarter,” stated Hassan Juma, president & chief executive of ABC.-TradeArabia News Service