Letters of credit (L/Cs) have helped Arab Banking Corporation (ABC) post a consolidated group net profit of US$41 million for the first three months of this year.

That means the Bahrain-based bank's profits are 25 per cent up on the first quarter of last year.

Improvements

Total revenues at ABC amounted to US$170 million in the first three months of 2010 compared with revenues of US$139 million generated in the same period last year.

According to ABC, increased income was achieved from L/Cs, loans and treasury activities.

Gulf L/C demand

Several banks in the Gulf are actively targeting new L/C business by introducing enhanced trade services.

These include Oman-based Ahli Bank, which earlier this year announced its new Working Capital facility.

It provides a range of services for small- and medium-sized enterprises, includingfast track L/C andoverdraft services.

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