The new president of Arab Banking Corporation (ABC), Ahmed Abdullatif, has announced the first senior management changes in the bank since formally taking up his post in May. Following the announcement, the bank reported first half pre-tax profits for 1995 of $91 million, 15 per cent higher than the same period last year.
The bank reported a higher contribution to profits from non-interest income, accounting for 41 per cent of total income in June 1995, compared with 36 per cent in June 1994. The bank also reported a 10 per cent rise in assets to $20,700 million in June 1995, compared with 12 months earlier. Loans and advances rose to $10,700 million in June 1995, compared with $10,600 million in June 1994. Total deposits rose 14 per cent in the period to $17,100 million.
The management changes announced by the new president are intended to ensure a closer relation between regional managers and the areas covered, a statement released by the bank says. Mike Murad retains his position as head of the Asia division, but will relinquish his role as chief operating officer of the bank. Murad will now move to Hong Kong from the Bahrain head office to look after the division. No new appointment has been announced for chief operating officer. The bank says Hatem Abu Said, ABC vice-president, will continue to head the Europe and America division from ABC’s Milan office.
ABC also signed a term loan worth $150 million on 26 July, which was well oversubscribed, Mark Leonard, first vice-president for global treasuries, says. The loan will be used for ABC’s ongoing active liability management programme, and the bank is unlikely to return to the market again until 1996, Leonard says. This is the second general facility taken out by ABC this year. In February, the bank signed a $100 million loan (MEED 27:1:95)
The loan is priced at 50 basis points (bps) a year above the London interbank offered rate (Libor). The arrangers are: The Bank of Tokyo, Chemical Bank, The Fuji Bank, The Industrial Bank of Japan, The Sanwa Bank and West LB Group.