ABC third-quarter profit rises to $69m

Bahrain-based Arab Banking Corp (ABC) yesterday announced its net profits have increased to $69 million at the end of the third quarter of this year, compared with a net profit of $55 million for the same period last year.

A statement issued by the group here said ABC's "earnings stream remained strong".

Total operating income increased by 12 per cent to $605 million (2002: $542 million). Net interest income was marginally lower at $328 million (2002: $337 million) because of the continued low dollar interest rates affecting mainly the earnings from equity funds, according to the statement.

It said non-interest income surged 35 per cent to $277 million. The figure stood at $205 million last year.

The increase is attributable to the improved performance from capital markets, retail banking and treasury activities. It also benefited from the streng-thening of the euro against the dollar, said the statement.

Loan loss provisions amounted to $91 million, mainly because of the continued economic downturn in the areas in which ABC has operations - Europe, North America and Asia, exacerbated by Argentina's debt default.

ABC recently announced that it has reached an agreement with Fubon Financial Holding and Co., Ltd, a leading financial group in Taiwan, regarding the disposal of its 55 per cent investment in International Bank of Asia Limited, Hong Kong.