ABC rides out market turbulence

06 September 2002

Net profits at Arab Banking Corporation (ABC)fell by 31 per cent in the first half of 2002 to $51 million from $74 million in January-June 2001, mainly as a result of difficult global market conditions. However, the bank emphasises that its underlying operations remain robust, and it has managed to register a 12 per cent year-on-year increase in total assets to $28,898 million.

ABC says its 2002 performance was affected in particular by the Latin American financial crisis and the plunge in global equity markets. 'It is unfortunate that turbulent market conditions have affected the half-year result, although our income generating capabilities have actually improved year-on-year,' says ABC president and chief executive Ghazi Abdul-Jawad.

Net interest income rose by 1 per cent to $235 million from $233 million in the first half of 2001, but non-interest income slumped to $124 million from $154 million, reflecting the Latin American losses. Provisions went up by 35 per cent to $46 million.

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