Arab National Bank's (ANB) net profit dropped 1.7  per cent to $656 million in 2007 compared to $668 million year earlier.

The bank’s earning per share reached $1.44 compared to $1.47 in 2006, ANB said in a statement.

Total operating income reached $1,055 million compared to $1,028 million in 2006, an increase of 2.6  per cent.

Net special commission income increased by 15  per cent to reach $774 million, while fees from banking services decreased by 21  per cent to $207 million. Operating expenses increased by 11  per cent to $399 million compared to $360 million for last year.

Profits of the fourth quarter of 2007 reached $129 million compared to $149 million for the same period last year. The decrease in profits came mainly as a result of a drop in investment earnings by $33 million compared to 2006.

The bank’s financial position reflected a balanced growth where loans portfolio rose by 23  per cent to reach $16.3 billion, while customer deposits grew by 19  per cent to $19.7 billion, and shareholders’ equity reached $2.8 billion.

“2007 was a successful year for the bank due to the strong growth of its main business sectors. The bank’s financial position continued its growth where loans and customer deposits rose by 23  per cent and 19  per cent, consecutively, leading to increase of the bank’s assets to $25.2 billion,” said ANB managing director Robert Eid.

“In 2007 ANB continued executing its branch network transformation and expansion project by remodelling, relocating and opening a significant number of new model branches kingdom wide,” he added.

“ANB’s board of directors recommended to increase the bank’s capital to $1.73 billion by granting three bonus shares for every seven shares held in order to strengthen and consolidate the bank’s capital base to accommodate the continued growth of its businesses,” Eid said. – TradeArabia News Service