Bahrain’s Arab Banking Corporation (ABC) has successfully completed a $1.11bn capital increase, bringing its total capital to $3.11bn.

The capital increase, completed on 1 April, will be used to finance the bank’s Middle Eastern growth strategy and make acquisitions. Shareholders approved a paid-up capital increase from $2bn to $3.11bn by way of a priority rights offering.

The offer period ran from March 10 to March 24, the bank said in a statement on the Bahrain Stock Exchange.

ABC reported a net profit of $122m in 2009, a strong recovery from the loss of $880m for 2008 when the bank suffered exposure to US subprime papers.  

The bank had to shore up its capital by a $1bn rights issue in June 2008 after steep losses during the first two quarters of that year.

Total revenues for 2009 amounted to $641m compared to $607m for 2008, an increase of six per cent.