São Paulo – Arab Bank, headquartered in Amman, Jordan, and with branches in 30 countries, wants to offer financing for foreign trade between Brazil and the Arab world. Executives at the Europe Arab Bank (EAB), the European branch of the institution, headquartered in London, were in São Paulo this week to disclose their interest and visited the Arab Brazilian Chamber of Commerce.
"We are interested in encouraging trade between Brazil and the Arab nations to help complement exchanges throughout the supply chain," said to ANBA the head of commodities and trade finance department at the EAB, Rowan Austin, who visited the Chamber in the company of the structured trade finance director, Stephen Kemp, and consultant Robert Paterson, of Lafco International, in São Paulo.
According to Austin, the bank has no physical structure in Brazil, but operates in partnership with institutions that may offer access to its lines of credit. He added that the loans to Brazilian businessmen may make use of the Arab Bank’s knowledge of the Middle East and North Africa, and the Arab companies may use the expertise of their partners on the Brazilian market.
Austin also said that, despite the international crisis, the bank, one of the main financial institutions in the Arab world, has liquidity and is willing to loan. He pointed out, however, that the institution operates conservatively and has a policy of risk mitigation in business made by its clients.
The executive said that prospecting the Brazilian market is in the hands of the European branch, as London is one of the main financial centres in the world. Austin added that the company plans to make contact with chambers of commerce to disclose services to foreign trade operators.
Performance
Last year, according to information disclosed this month by the group, Arab Bank had net profit of US$ 840 million, growth of 8.4% over 2007. Profit before taxes was over US$ 1 billion, growth of 10%.
Customer deposits in the institution reached US$ 31.4 billion in late 2008, growth of 27%. The value is equivalent to 69% of assets of the group, which ended the year at US$ 45.6 billion, up 19%. The credit portfolio reached US$ 22.5 billion and return on equity ratio (profitability) stood at 11.2%.
Austin added that the main business of the bank is infrastructure project financing in the Arab world and trade financing. The group has been in operation for 78 years and, apart from the Middle East, Africa and Europe, is also present in Asia, Oceania and North America.
Further information
Robert Paterson
Lafco International
Tel: (+55 11) 3818-0969
E-mail: r.paterson@lafcointl.com
Site: www.lafcointl.com.br
Rowan Austin
Europe Arab Bank
Tel: (+44 20) 7315-8500
E-mail: rowan.austin@eabplc.com
Sites: www.eabplc.com e www.arabbank.com
*Translated by Mark Ament
