Net profits at ABC International Bank (ABCIB), the London-based subsidiary of Arab Banking Corporation, fell 34 per cent to ú8.02 million ($12.8 million) in 1998 due to significant exposure to emerging markets. Despite the decline, the bank says underlying profitability before provisions was 15 per cent up on 1997.

Assets grew by ú200 million ($320 million) to ú1,750 million ($2,800 million) and operating income was ú30.6 million ($49 million), up from ú26.9 million ($43.1 million) in 1997. 'Last year we got a lot of trade finance business between Europe and the Arab world, although our profitability has been growing year-on-year,' says ABCIB chief executive Abdul Majid Breish.

However, provisions grew ú5.5 million ($8.8 million) to ú8.5 million ($13.6 million), largely as a result of losses sustained in the troubled Pakistani, Indonesian and Russian markets.