Net profits at British Arab Commercial Bank (BACB) rose by 14 per cent in 1998 to ú14.6 million ($23.1 million) from 1997 levels. The London-based bank is part of the HSBC Group.

Chairman John Hill says that despite the volatility in Middle East markets in 1998, the implementation of the first stage of the bank's three-year strategic plan proved a success. Marketing to BACB's core Arab markets and their trading partners in Europe and the Far East has been increased. 'The result has been a substantial increase in trade finance business,' says Hill in a statement. 'At the same time, concerted efforts were made to rebuild the lending book with advances to Arab counterparties.'

The expansion of BACB's trade finance operations continued this year with the establishment in April of a supplier credit finance line of credit (SCFLOC) facility with Cairo-based Misr International Bank (MIBank). The $5 million facility is the first to an Egyptian bank approved by the UK's Export Credits Guarantee Department (MEED 30:4:99).

Net interest income in 1998 improved by 12 per cent, and profits were further boosted by record earnings by the treasury department. Upgraded information and control systems and new senior management allowed the department to take advantage of the volatility in foreign exchange markets and dealing profits rose by 11 per cent. Hill says that 1999 will also be a volatile year but BACB is well positioned: 'By linking the origination capabilities of its Arab shareholders and counterparties with the distribution capacity of the HSBC Group, BACB aims to increase its share of Arab trade.'