MANAMA, 1 November 2006 — Arab Banking Corporation (ABC) yesterday announced that the group’s net profit reached $151 million for the year to September 2006.
This was an increase of 54 percent over the net profit of $98 million for the same period last year.
Total income surged to $339 million (2005: $250 million). Interest income at $186 million was 34 percent higher than $139 million recorded in the same period last year benefiting from the higher interest rates and the gradual build-up in lending activities.
Non interest income at $153 million also registered a healthy growth of 38 percent over the $111 million recorded for the corresponding period of last year as a result of higher earnings emanating from trade finance, securities and other treasury activities, and the disposal of certain fixed assets ($8 million).
Writebacks of loan loss provisions and recoveries, partly offset by provisions for fixed asset impairment, totaled $25 million, compared with the net writebacks of $12 million in the same period last year.
Operating expenses increased to $189 million (2005: $145 million) attributable mainly to a rise in staff costs from cost of living increases, higher accruals attributable to variable compensation schemes from increased earnings and additional staff hired to develop the group’s growing business lines.
ABC Group’s total assets amounted to $22 billion (2005 year end: $17.6 billion).