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Bank ABC net profit down 30pc to $189m

MANAMA, February 15, 2016

Bank ABC (Arab Banking Corporation) has posted a net profit of $189 million for last year, 30 per cent lower compared to a profit of $256 million recorded the previous year.
 
The net profit for the fourth quarter was $36 million, down 39 per cent as compared to $59 million reported for the same period the previous year, said a statement.
 
The group’s performance for the year was significantly affected by deteriorating economic conditions in key markets in which the bank operates, it said.
 
A combination of volatile trading conditions and appreciating US dollar against domestic currencies were the main headwinds during the year.  
 
In particular, the Brazilian real and Algerian dinar weakened during 2015, by over 30 per cent and 20 per cent respectively. However, underlying businesses continued to show strong and sustained performances in local currency terms despite the declining economic conditions; notably wholesale and Islamic businesses in Bahrain, subsidiaries in Jordan, Egypt, and even profits in Brazil improved year-over-year on a local currency basis.
 
Saddek Omar El Kaber, chairman, said:“2015 was a year that was adversely affected by emerging market currency depreciation, market volatility and geopolitical issues in our key markets. Yet, many of our core businesses remained resilient and continued revenue growth trajectory. 
 
"Improvements to our operational platform were also stepped up during the year as we accelerated our investments in people, products, compliance and risk management in line with our strategy to further transform the Group and to enhance the quality of earnings. We thank our Shareholders for their steady support as well as the commitment of our staff to achieve the changes that we aspire to in these challenging times.” - TradeArabia News Service



Tags: ABC | Bank | profits | down |

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