The German arm of Arab Banking Corporation has formal approval from the board of governors to revive its investment department, which will become operational in 1996. The department has been dormant for the past four years (MEED 20:1:95).
‘The preliminary steps have been taken and the decision made in this respect,’ says Jens-Ove Stier, general manager of Arab Banking Corporation- Daus (ABC-Daus). The new department will have a staff of about 10 people, who will offer brokerage and fund management services to Middle East customers wishing to invest in the German market
Stier says ABC-Daus results for 1994 were disappointing, as rising interest rates hit the bank’s investment portfolio. ‘But the revaluation in 1994 has already been corrected in 1995,’ Stier says. Results this year are expected to improve strongly because interest rates have peaked and other sectors of business are well within income targets, he says. ‘We hope to finish the year in this direction,’ Stier says. ‘This proves our policy to diversify the business has been successful.’
Project and trade finance activities this year have been boosted by a German marketing drive in the Gulf in May. Stier will also be accompanying a German trade mission to Damascus and Beirut between 5-7 July to develop business outside the bank’s core areas.