Bank ABC assets stand at $29B in H1

CAIRO – 25 July 2017: The Arab Banking Corporation’s (Bank ABC) total assets stood at $29.2 billion at the end of H1 of 2017, compared to $30.1 billion in the same period of the previous year, a Tuesday report said.

Consolidated net profits reached $102 million in the first half of 2017, compared to $101 million in the year-ago period, due to strong performance in all core businesses.

Net profit fell 13 percent to $ 52 million in the second quarter, down from $60 million reported for the same period last year, due to higher impairment provisions.

Total operating income amounted to $432 million in H1 of 2017 from $442 million in H1 of 2016, while operating expenses stood at $224 million, slightly higher than last year, mainly impacted by currency translation as well as flow through costs on investments in the previous year, the statement said.

Net impairment provisions for the six month period grew to $50 million from $36 million last year.

“The increase was primarily from our Brazilian subsidiary, Banco ABC Brasil, which continues to be impacted by some flow through from the recessionary conditions of the Brazilian economy,” the bank stated.

The bank noted that the provisions allocated are in line with the expectations for the period and are significantly lower than Brazilian peer banks.

As for the deposits, the bank said that they amounted to $21.3 billion, higher than their level in the year-ago period at $20.2 billion.

“The Group’s liquidity position continues to be at comfortable levels with the liquid assets to deposits ratio at 63 percent, lower than the 68 percent at the year-end 2016 reflecting the increase in the deposits,” ABC Group stated.

Shareholders’ equity $3,848 million by 30 June 2017 stood after the distribution of 3 percent dividend to the shareholders.

“The results are steady and in line with our expectations. This is a positive sign and a testament for our diversified group businesses.

Whilst market conditions in Brazil continue to be challenged, our operations in Brazil have shown resilience and our core businesses in other countries have performed well.

Our proactive risk and balance sheet management is bearing fruits, with our key health indicators measuring exceptionally well against international standards,” Group Chairman, Saddek el-Kaber, commented.