MANAMA, 3 March 2005 — Arab Banking Corp. (ABC), the largest Arab bank in terms of assets, announced yesterday net profits of $579 million in 2004.
The profits include $470 million realized from the disposal of subsidiaries Banco Atlantico, SA, Spain and International Bank of Asia Ltd., Hong Kong, a statement said.
“The net profit for the same period last year amounted to $120 million, including $49 million contributed by the above-mentioned subsidiaries,” it added.
Net interest income was $152 million, down from 158 million in 2003. Group assets dropped to $14.9 billion from 30.1 million, as a result of the two disposals.
“Liquidity has strengthened substantially, boosted by the sale proceeds, with the liquid assets to deposits ratio rising to 79 percent,” the bank added.
The loans to deposits ratio improved to 56 percent.
ABC sold International Bank of Asia to Fubon Financial Holding and Co. of Taiwan in September 2003. It agreed to sell Banco Atlantico to Banco de Sabadell of Spain in December 2003, with the deal completed in 2004.
ABC’s major shareholders are the Libyan central bank, the Abu Dhabi Investment Authority and the Kuwaiti finance ministry, which together own 70 percent of the bank.
Another 25 percent of the stock is traded on the Bahrain, Kuwait and Paris stock exchanges. The remaining five percent is held by individual and institutional investors.
