annual report 2005 - Arab Banking Corporation, ALGERIA

ANNUAL REPORT 2005
Table Of Content
Presentation……………………………………………………………………………………….....
..
2
Message of the President ……………………………………………………………………….…. 3
Message of the General Manager …..…………………………………………………….……... 6
The Management …………………………………………………………….…………………….. 8
− The Board of Directors ……….………………………………………………………………... 8
− Subsidiary Board Risk Committee………………………………………………….……..... 10
− The Audit Committee……………………………………….………………………………….. 10
− Compensation Committee………………………………….………………………………… 10
− General Management………………………………………………………………………….. 10
Audit report 2005…………………………………………………………………………………… 12
The Bank’s achievements in 2005
…….……………………………………………………………………..
15
Financial Statements – 2005…………………………………………….……….…..…………….. 23
− Balance Sheet / Profit & Loss as at 31.12.2005……………………….…………….….……. 25
− Major Financial Outlines On The Balance Sheet ………………………………….………….. 28
ABC Group Directory 29

Presentation
ABC-ALGERIA, subsidiary of Arab Banking Corporation (B.S.C) Bahrain, was the first
international private bank to be authorized to operate under Algerian legislation, by an official
decision of the ‘’Conseil de la Monnaie et du Crédit de la Banque d’Algérie’’ (Council of Currency
& Credit of Central Bank Of Algeria) on September 24 th 1998. ABC-Algeria has launched its
activities on December 2 nd , 1998 with the opening of its head office and its central branch in Bir
Mourad Rais Algiers.
Capital and Shareholders
The bank’s initial capital of DZD 1 183 200 000 (Algerian Dinars) has been increased during the
Extraordinary General Meeting held on June 26 th 2000 to DZD 2 670 000 000 (Algerian Dinars) in
order to improve shareholder equity, to enable the bank to increase its commitments and financial
capabilities, and to meet its customers needs.
The Shareholders
Shareholders
% Capital
DISTIBUTION OF EQUITY
Arab Banking Corporation –
ABC (B.S.C) - Bahrain
70 %
11%
The Arab Investment
Company -TAIC Riyadh
The International Finance
Corporation - IFC
Washington.
10%
4,43%
10%
4%
5%
ABC (BSC)
TAIC
IFC
CAAR
La Compagnie Algérienne
d’Assurance et de
Réassurance – LA CAAR
Algeria
Six Algerian Private
Investors
5%
10, 57%
70%
OTHERS

Message of the President
François Nour NAHAWI
Chairman of the Board of Directors
It gives me pleasure to inform you that the Bank achieved a net profit of DZD 588 million during
the year ended 31 December 2005 (2004: DZD 380 million).
This is particularly gratifying as it confirms that the Bank has overcome some difficulties of the
early years of its life as a result of the corrective actions taken. It also proves that the strategy
implemented is working successfully.
ECONOMIC REVIEW
Following its impressive performance in 2003 & 2004, the Algerian economy once again
experienced excellent growth during 2005. All economic indicators showed positive movements.
GDP grew by 6.5% and foreign exchange reserves rose by a further US$10 billion to US$50
billion, pushing the external debt ratio to a healthy 20%. External debt currently stands at US$16
billion, down from US$23 billion at the end of 2004. The main contributors to this impressive
performance were high oil and gas revenues, resulting from record high hydrocarbon prices in the
international markets. The fiscal surplus has widened steadily over the past years as a consequence
of high prices. The Government undertook a number of development projects in the country,
which are successfully underway. Trade and commerce grew in line with the boom being
experienced worldwide, particularly in the oil and gas producing countries.
The bullish trend in the economy was also reflected in the banking sector, which flourished during
the year. The Government has affirmed its intention to carry out privatization that should open
Algeria’s small and financial sector to foreign investors. There are also expectations that the
regulatory environment will be improved further. Two new banks were established in the year,
taking the total number of banks to 17 in the Country. Of these six are state owned or state
controlled and 2 are privately owned. The number of foreign banks reached 9. It should be
recalled that ABC Algeria was the first privately owned foreign bank in the country established in
1998.
The banking sector in Algeria further expanded during 2005, on the back of increased economic
activity particularly from the expansion in the hydrocarbons sector and the flurry of foreign

investments. Increased foreign investment in the Country has been witnessed in all sectors,
particularly in communications, technology, finance, construction etc. The Government has also
been spending increased amounts on infrastructure development, education and public services.
These auger well for the future development of industry and agriculture, both vital pillars of the
Algerian economy.
The robust fiscal position and economic activity has of necessity given way to some inflation,
though, the authorities have successfully kept it in check. The Algerian Dinar has been prudently
managed to promote economic stability.
On the other hand, strong market liquidity has put further pressure on margins and increased
competition amongst the banks.
BUSINESS REVIEW
ABC Algeria with its four branches is primarily involved in trade finance and commercial banking
business. Since the end of 2005 one more branch has been added to its network. This branch, the
third one in the capital, Algiers will primarily service retail banking operations.
Despite the increased competition alluded to above, ABC Algeria had an excellent year, with a net
profit of DZD 588 million compared to DZD 380 million in 2004. Further review of its financial
statements indicates an increase of 51% in its net interest income to DZD 700 million and 74% in
non-interest income to DZD 616 million, on the back of DZD 1 686 million loan portfolio
expansion of 35% and a substantial increase in trade finance turnover, together with increased
Money Market and Marketable Securities earnings. Total operating income was DZD 1 315
million, 61% higher than 2004. We are pleased to report that all business units, including Treasury
contributed to the substantially increased revenue generated during the year. With operating
expenses well contained, together with recovery of non-performing loans, the Bank returned a net
profit of DZD 588 million, a huge improvement over the previous year and an impressive return on
equity of over 20%.
Following a strategic reorganization in 2004, ABC Algeria has repositioned itself to concentrate on
Trade Finance and Retail Banking activities. Its new retail banking division aims to expand the
branch network over time by 11 new outlets, starting with three new branches planned for Algiers
in 2006. With its IT systems upgrade now successfully implemented, ABC Algeria is confident of
being able to deliver quality products to an expanding corporate and retail customer base in an
efficient and profitable way.
Total assets as of 31 December 2005 were DZD 31.5 billion (2004: DZD 24.8 billion). Loans and
Advances were DZD 6.4 billion (2004: DZD 4.7 billion). The Bank continues to apply very strict
risk management techniques in its credit approval process. Our approach to the assessment and
approval of credit proposals has been further strengthened with the introduction of Board Risk
Committees, both at the subsidiary and parent levels. As a result, the quality of our credit portfolio
and thus the earnings has shown a marked improvement. Furthermore, we have been successful in
generating increased revenues from short-term trade related facilities and off-balance sheet items.
Despite a substantial increase in our overall credit portfolios, our non-performing loans portfolio
has reduced to DZD 1 666 millions(approx. US$22 millions). In line with our conservative credit

policies applied across all ABC Units, we are carrying a loan loss provision of 100% against these
non-performing loans.
The equity base of the Bank was further strengthened by an increase in the share capital of the
Bank in the first half of the year. The increase comprised of bonus shares, as well as new money
contributed by the Shareholders. As a result of this increase, the new share capital of the Bank
amounts to DZD 2,670 million. Capital adequacy ratio based on the Basle Accord stood at 30,86 %
at the year end. Liquidity remains strong at 53%.
In compliance with its long term strategy, the Bank has launched Retail Banking activities by
opening a retail oriented branch developing retail product policies and infrastructure including
recruitment and training of retail staff. Additional retail oriented branches, serving mainly as sales
points for its retail products will be established. It is envisioned that initially personal loans and car
loans will be offered to its targeted customer segment. In addition to branches, we are also
exploring other delivery channels to deliver and distribute our products.
Supported by our HO IT team in Bahrain, ABC Algeria has the latest and the most developed
banking systems and telecommunications network. This provides it with a significant competitive
edge over other banks in the country. With the help of its latest IT & communications systems and
clearly defined business strategy focusing on Trade Finance and Retail Banking and its unwavering
commitment to excellence, we have every confidence to succeed and grow.
The Board of Directors wishes to thank the Algerian Regulatory Authorities for their continued
support and guidance. We also wish to thank our customers for their confidence and patronage and
our shareholders for their trust and support.
Finally on behalf of the Board of Directors, I wish to thank the Bank’s Management team and all
our staff for their dedication, commitment and efforts to strive towards excellence.
François Nour NAHAWI
Chairman of the Board of Directors

Reidha SLIMANE TALEB
General Manager
Letter of the General Manager
In the framework of the economic reforms undertaken in Algeria for some years , the
monetary and financial authorities in Algeria have taken appropriate measures for
implementing the necessary banking tools, to ensure security and fluidity of operations on
one hand and risk management and good governance on the other. Indeed, they launched the
electronic clearing and RTGS systems; they also reinforced control of banks and financial
institutions and budgeted significant amounts needed for the economic revival and
achievement of major investment projects during the coming five years.
In this context, Arab Banking Corporation Algeria (ABC Bank) deployed great efforts during
the previous years through the implementation of advanced tools of management, staff training
and adoption of good governance tools. It has also intensified cooperation with the managing
bodies of the bank and with its customers as well . As a result, it consolidated its growth and
ended up fiscal year 2005 with a net income of about DZD 590 Millions (Algerian Dinars)
equivalent to approximately USD 8 millions i.e. an increase of more than 50% in comparison
with the previous fiscal year net result.
Upon these grounds, I, personally, and on behalf of the board members, would like to express
my sincere gratitude to all our customers who remained faithful to the bank during all these
long years and to those who are joining us; to the staff members of the bank for the efforts
deployed and for their devotion towards ABC Bank.
I extend my thanks to the board members, internal committees for their contribution, assistance
and cooperation; to ABC BSC (HEAD OFFICE) and ABC units throughout the world for their
support and synergy which helped us to satisfy our customers by providing them with high
service quality; to all our partners for their trust and contribution to the development and
progress of our bank and to the external auditors for their assistance and vigilance.
Reidha SLIMANE TALEB
General Manager

ABC-ALGERIA BOARD OF DIRECTORS
From left:
Sami BENGHERSA: Member of Board of Directors
Ghassan Wadih HAIKAL: Deputy General Manager
Reidha SLIMANE TALEB: General Manager
Brahim KASSALI: Member of Board of Directors
François Nour NAHAWI: President of Board of Directors
Mohamed Al Amine DIDI: Member of Board of Directors
Usama ZENATY: Member of Board of Directors
Fehmi HANNACHI : Member of Board of Directors

THE BOARD OF DIRECTORS
The Board of Directors is in charge of the overall direction, supervision and control of the bank.
Seven members represent the shareholders and nominated for their skills and experience in banking
and management.
In 2005 we note a change in its composition with the replacement of Mr. ALI DJENDI by Mr.
BRAHIM KASSALI representing the shareholder CAAR (Algerian Company of Insurance and
Reinsurance).
President:
Nour NAHAWI
− SVP Arab World Division Head .-ARAB BANKING CORPORATION, (BSC) Bahrain
− Chairman Arab Banking Corporation-Algeria
B.A. in Business Administration, Colby College, Maine, U.S.A ;M.A. School for International Training, Vermont, U.S.A.
Mr. Nahawi joined ABC in June 2003, having previously been Managing Director of BNP Paribas Egypt. He started his banking career
with Jordan National Bank in 1973, and moved to BNP Paribas in 1974, holding senior positions in New York, London, Paris, Beirut,
Cairo, Abu Dhabi, Bahrain and Oman. A member of the Boards of ARAB BANKING CORPORATION -Egypt, ARAB BANKING
CORPORATION-Jordan, ARAB BANKING CORPORATION-Algeria and ARAB BANKING CORPORATION-Tunisia, Mr.
Nahawi has over 30 years’ experience in international investment, retail and commercial banking.
Member:
Saddek Omar El Kaber
Resident Country Manager & General Manager ABC-Tunis
Mr. Saddek Omar El Kaber has a MS in public accounting from the university of HARTFORD, CONNECTICUT USA he held
different positions in institutions such as Financial Service Bahrain ,UMMA Bank Libya et Union of Western Arab Banks Tunisia.
He joined ABC Group in 2003, as resident country manager & general manager in ABC Tunis.
Member :
USAMA ZENATY
Representative & Head of Iberian Marketing since May 2004 ABC International Bank Madrid
Graduated in BA Business Administration de United states International University (Alliant International University) San Diego-
California Major: Business Administration, with a minor in international Finance. Mr Zenaty has over 17 years banking experience with
Banco Atlantico Spain and is currently representing ABC group in Spain-Madrid

Member:
Sami BENGHARSA
Deputy General Manager- ABC International Bank PLC - Milan.
Graduated in Professional Designation Commerce International from the University of California, LA- USA. Mr. Bengharsa is also
graduated in Business Administration Sciences from the University of Pepperdine, Malibu, USA. In 1985, he was appointed as Head
of Credit and International Relations in ARAB BANKING CORPORATION, New York. In 1989, he joined ARAB BANKING
CORPORATION,IB Paris as Assistant General Manager in charge of the International Relations. Since March 1998, Mr. Bengharsa
is Deputy General Manager in ARAB BANKING CORPORATION, Milan.
Member:
Fehmi HANNACHI
Head of Financial Institutions & Country Coordination Manager – ABC International Bank PLC - Paris.
Fehmi HANNACHI has a degree in International Relations from the University of Rome “La Sapienza” and a European Master in
International Business from the University of Paris I Panthéon-Sorbonne. He joined ABC International Bank, Paris in 2000 and has
been appointed as Manager of the Financial Institutions Department in 2004.
Member:
Mohamed El Amine DIDI
Project Manager TAIC
(The Arab Investment Company)- Riyadh- Kingdom of Saudi Arabia -
Master Degree in Banking and Finance in addition to a diploma from the Arab Academy for Banking and Financial Sciences, Jordan.
Since 1988, Mr. Didi joined The Arab Investment Company (TAIC) where he is the Project Manage
Membre :
BRAHIM KASSALI
Président- Directeur Général CAAR
(Compagnie Algérienne d’Assurance et de Réassurance), Algérie
BRAHIM KASSALI has a degree in Science financière from the University of Algiers and a master degree from the International
institute of Public Administration (Paris) and a master from the Institute of International Financial Services- Montreal .

SUBSIDIARY BOARD RISK COMMITTEE (SBRC)
The Risk Committee assumes in matter of credit, the attributions given by the Board. The
Committee has been endowed in 2005 with a fourth member.
Composition
Chairman: Mr François Nour NAHAWI Chairman of the Board of Directors
Members Mr Riyad AL DUGHAITHER Group Chief Credit and Risk Officer
Mr Sami BENGHARSA
Member of the Board of Directors
Mr Brahim KASSALI
Member of the Board of Directors
THE AUDIT COMMITTEE
The Audit Committee acts on delegation of the Board of Directors and has a mission to look for the
existence of a proper financial, accounting and operational control systems and procedures, and its
reliability and efficiency, in assuring the regularity of the accounts and financial statements as well
as its security and the qualitative high level of the operations handled.
Composition
President : Mr Usama ZENATY Member of the Board of Directors
Members : Mr Mohamed EL AMINE DIDI Member of the Board of Directors
Mr Fehmi HANNACHI
Member of the Board of Directors.
THE COMPENSATION COMMITEE
Composition
President: Mr Saddek Omar EL KABER Member of the Board of Directors
Members Mr Usama ZENATY Member of the Board of Directors
Mr Fehmi HANNACHI
Member of the Board of Directors
Mr Brahim KASSALI
Member of the Board of Directors
THE GENERAL MANAGEMENT
Composition
General Manager
Deputy General Manager
Mr Reidha SLIMANE TALEB
Mr Ghassan Wadih HAIKAL

ORGANIZATION CHART OF ARAB BANKING CORPORATION-ALGERIA
It was decided in 2005 to adapt the organization chart of A B C- ALGERIA to the other organization charts
of the other units of the group. The Organization chart is as follows.
Audit
Committee
BOARD OF DIRECTORS
SBRC Committee
Compensation Committee
General Manager
Central Credit Committee
Internal Audit
Deputy G M
Management
Committees
Remedial Committee
IT Committee
Treasury Committee
Internal Control
Legal
HR Committee
ADMINISTRATION
BANKING
CREDIT
HR & ADMIN
Treasury
Risk Analysis
Financial Control
Operations
Technology
Retail Banking
Commercial
Banking
Correspondant
Banking
Credit
Administration
Remedial

Financial highlights 2005
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
-
2004
2005
Assets
Placements
Loans&Advances
Deposits
Shareholder's funds
Net Profit
KUSD
Total Operating Income
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
-
2004 2005
Net Profit
20 000
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
-
2004 2005

Major Financing for Manufacturing Industries

THE BANK’S ACHIEVEMENTS IN 2005
2005 was the year of ongoing achievements of the commitments undertaken since 2003 in what
concerns the clean up process regarding all support activities of the bank and also enhancing the
system capabilities and upgrade of its performances.
On the banking market level, it is worth mentioning that during this year, the Central Bank
implemented ARTS & ATCI: the new payments systems which will largely facilitate the banking
transactions among all banks & customers.
ABC Algeria growth was maintained and market share was increased despite the competitive
environment.
The internal audit went with its ongoing program in the various bank’s activities, aiming to
improve and strengthen the procedures, bringing the necessary corrective measures and adapt the
means for a better performance.
The year 2005 also allowed the finalization of the projects undertaken in 2004 and the launching of
new technological and operational projects.
The Organization Methods and Procedures (OMP) department which was created in 2005, had a
busy agenda of projects during this year for procedures listing inventory, enhancements and update.
Retail Banking was established & new staff were recruited for the division & for the new branches
expected to be inaugurated in 2006. Car loan product was finalised and ready to be launched
beginning 2006 with the opening of the retail branches.
One major achievement and compliance advantage that the bank had on its peers was in terms of
money laundering compliance and procedures implementation and adherence to the Group ML
policy. In fact, intensive training for all staff was carried and enhancements of the Money
Laundering policies and procedures took place, putting the bank in a competitive position in the
market as regarding money laundering matters.

“Trade Finance”
The principal activity of ABC-Algeria

The Credit division completed its reorganisation in 2005 that resulted in a more efficient and
reliable method for the credit files processing.
Loans portfolio (direct) knew an increase of almost 26% as for indirect commitments they increase
by 46% -as compared to 2004 -which made an average growth on total portfolio of 37% for 2005.
Maturity profil of total loans
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
-
Short Term
Long Term
2004
2005
The portfolio distribution by business sectors was as follow:
72% Industrial; 20% Telecommunication & trading & the remaining for energy; construction &
financial institutions.
The Bank has also been active in the big size tickets that were subject to syndicated loans to which
ABCA participated with local banks.
Products offering still include the traditional featured products whereas the new clearing system &
the RTGS payment system will enable ABCA to offer new products & acquire new customers.
Traditional products and services include letters of credit, guarantees, commercial and individuals’
financial influx.
The volume of LC’s increased of 74% & for Documentary Collection 16% and for the transfers the
increase was for 171% & for the remittances the increase was for 297%.
The LC’s entrusted to the units of the ABC Group represented 82% of the total volume.

Financing of food processing

The income recorded by Treasury division in 2005 knew an increase of more than 174% compared
to 2004. Both deposits sight & terms knew respectively an increase of 34% and 37% in 2005
compared to 2004. The number of accounts had increased of almost 10%.
K USD Assets Evolution
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
-
Total Actif Placements Engagements Dépôts Fonds Propres
2004
2005
The year 2005 was also devoted to intensive training programs whether internally or externally and
in various subjects ranging from Money laundering, Control, Banking operations, Credit , Retail
etc. All staff had assisted to at least one training session in the year.
Recruitments took place in preparation for the retail branches opening and in some key new
positions.
The year 2005 could be summarized by the strong will of the bank to be in line with Group
objectives, and the deployment of efforts focused on further diversifying the product base and
increasing sources of fee income as the primary routes to earnings maintenance.

Financing for Telecommunication

ASSETS AND LIABILITIES as at 31 st December 2005
All figures in thousands DZD
ASSETS 2005 2004 Variance
Liquid Funds (Cash, balance at central bank, post office check centres) 7 007 784 10 599 931 -34%
Public securities and similar values 0 0 0%
Loans And Advances
Financial institution 9 812 271 5 262 822 86%
Customers 6 449 112 4 762 613 35%
Bonds and other fixed -yield securities 515 208 500 208 3%
Participation and other fixed yield securities 0 0 0%
participation and portfolio activities 273 395 269 720 1%
Shares in related companies 0 0 0%
leasing and similar transaction 0 0 0%
Straight leasing 0 0 0%
Non tangible asset 13 075 17 666 -26%
Tangible fixed assets 595 205 688 919 -14%
Other shares 0 0 0%
Subscribed shares of unpaid capital 0 743 400 -100%
Other assets 19 358 13 323 45%
Reconciliation accounts 6 823 657 5 132 961 33%
TOTAL ASSETS 31 509 065 27 991 564 -11%
LIABILITIES 2005 2004 Variance
Deposits
central banks, post office centres 0 0 0%
Financial institutions 808 641 7 611 280 -89%
From customers 17 154 046 5 546 883 209%
Security deposits 2 043 478 2 064 397 -1%
Other liabilities 115 388 62 348 85%
Reconciliations accounts 7 739 020 5 532 028 40%
Provisions
Risks and charges 26 855 14 855 81%
Regulatory 0 29 201 -100%
general risks 287 197 280 524 2%
Investment subsidiaries 0 0 0%
Subordinated liabilities 0 0 0%
Subscribed share capital 2 670 000 2 670 000 0%
Capital premiums 0 0 0%
Reserves 202 094 689 674 -71%
Revaluation differential 0 0 0%
Carried forward (+/-) -125 218 -504 893 -75%
Profit and loss (+/-) 587 563 379 675 55%
Total LIABILITIES 31 509 065 24 375 972 -23%

OFF BALANCE SHEET as at 31st December 2005
All figures in DZD thousands
COMMITMENTS 2005 2004 Variance
Total Commitments 12 337 671 7 962 165 55%
Financing commitments in favour of financial institutions 251 128 1 408 076 -82%
Financing commitments in favour of customers 8 476 086 2 666 084 218%
Guarantee commitments by order of financial institutions 2 451 329 2 665 838 -8%
Guarantee commitments by order of customers 1 156 613 1 222 167 -5%
Other commitments 2 515 0 100%
LIABILITIES 2005 2004 Variance
Total Contingent liabilities 10 801 568 7 769 992 39%
Financing liabilities in favour of financial institutions 0 0
Guarantee liabilities by order of financial institutions 8 519 653 4 687 432 82%
Other liabilities 2 281 915 3 082 560 -26%

PROFIT AND LOSS ACCOUNT as at 31 st December 2005
All figures in DZD thousands
2005 2004 Variance
Interest and similar charges 58 580 71 713 -18,31
Fees and commissions 49 129 37 152 32,24
Other operating expenses 1 568 934 67,99
TOTAL A = OPERATING EXPENSES 109 277 109 800 -0,48
Overhead operating expenses 512 795 463 532 10,63
provisions and loss on bad loans 177 854 631 072 -71,82
depreciation and provision or non tangible 100 670 105 463 -4,55
unusual expenses 28 088 16 732 67,87
taxation on profit 202 195 0 -
TOTAL B = other expenses 1 021 602 1 216 799 -16,04
A+B= TOTAL CHARGES 1 130 879 1 326 599 -14,75
interests and similar income 808 988 572 332 41,35
Commissions 615 500 353 455 74,14
other banking operating income 7 091 4 814 47,28
income from leasing and similar operations 1 560 240 550
participation and other variable yield securities 21 906 11 040 98,4293
TOTAL C = OPERATING INCOME 1 455 046 941 881 54,48
D = OTHER INCOME 263 396 764 392 -66
C+D = TOTAL INCOME 1 718 442 1 706 274 0,71
NET PROFIT OF THE YEAR 587 563 379 675 54,75

MAJOR INDICATORS
2005 2004 Var.
1- INCOME
Interest and similar income (a) 808 988 572 332 41,35
Total commissions (b) 646 057 369 549 74,82
Operating income c) c = a + b 1 455 046 941 881 54,48
commissions portion in % 56 61 -8,50
interest portion in % 44 39 13,17
banking operating expenses (d) 109 277 109 800 -0,48
Profit margin(e) e=c-d 1 345 769 832 082 61,74
other income (f) 263 396 764 392 -65,54
General expenses 641 553 585 727 9,53
Profit before tax an provisions e + f - g 967 613 1 010 748 -4,27
risks provisions 177 854 631 072 -71,82
Profit before tax 789 759 379 675 108,01
taxation on profit 202 195 0
Net profit 587 563 379 675 54,75
Net profit on shares paid 22% 20%
Return on capital 22% 14%
Return on equity 19,37% 15,87%
Return on assets 1,86% 1,36%
Return per employee 2 852 1 937
2- Risks Covering
Equity =FP 3 034 073 2 391 905
Net Equity= FPN 2 747 604 2 104 519
Prudential ratio (Balance risk hedging) 17% 31%
Prudential ratio (Balance risk hedging and OB) 10% 14%
3- OTHER INDICATORS
Liquid assets % 53% 51%
Resources stability in % 32% 38%
Customers resources stability 32% 38%
All figures in DZD thousands

MAJOR FINANCIAL OUTLINES ON THE BALACE SHEET
STRUCTURE AND EVOLUTION
I
II
ASSETS
LIABILIATIES
I. ASSETS
a) Cash, Bank of Algeria & Postal Cheques accounts
These accounts represent the liquidity of the bank which decreased to DZD 7 008 millions in
2005 against 10 599 in 2004. The most significant variance is noticed in Bank of Algeria
account “DZD “: An amount of DZD 10 412 millions in 2004 against DZD 6817 Millions in
2005.
b) Loans & Advances to Financial Institutions:
This chapter progressed from DZD 2132 to DZD 9812 in 2005 an increase of 360 %. The four
main subtitles are:
Money Market funding or loans to financial institutions increased from DZD 702 million in
2004 to DZD 8 239 millions in 2005;
The balances of clearing accounts with other banks increased from DZD 1 382 in 2004 to
DZD 1 522 in 2005;
The ordinary loans to banks and public treasury amount to DZD 47 millions;
Total loans with foreign correspondent banks overseas DZD 03 millions

c) Loans and Advances to Customers
For the year 2005, this chapter showed an increase of 35% comparing to 2004. Indeed the
balance went up from DZD 4762 millions in 2004 to DZD 6 449 millions in 2005. This
increase is justified by:
The refinancing of letter of credits in DZD (LC’s) which recorded an increase from DZD
209 Million in 2004 to DZD 1 346 Million in 2005;
The balance of Middle term investment credit went up from DZD 1 434 Million in 2004 to
DZD 2 567 Million in 2005.
An increase in the doubtful debts is noted from a balance of DZD 1 514 Million in 2004 to
DZD 1 666 Million in 2005.
It is important to emphasize that in 2005, Overdraft Facility accounts balances were as
follow: OVD without PN DZD 971 Million and DZD 69 Million for the OVD against PN.
d) Bonds and other Fixed income
For 2005, these accounts recorded an increase of 3% from DZD 500 million in 2004 to DZD
515 million in 2005.
e) Participation and Portfolio activities
34% Participation in the capital of Arab Leasing Corporation (ALC) established in Algeria,
at the amount of DZD 257 720 000;
Participation in the capital of la Société de Garantie des Dépôts Bancaires (SGDB),
equivalent of DZD 10 million; (Banks Deposits Guarantee)
Participation of the bank in the capital of Pré-compensation Interbancaire of DZD 5.7
million.(Interbank Clearing)
It is necessary to mention that there was an increase of 1% compared to 2004, because of
the increase in ABCA participation in the capital of DZD 3,7 million.

f) Fixed assets
The variations recorded between 2004 and 2005, are due to the applied depreciation;
refurbishments, installations and acquisition of office furniture.
The main subtitles are:
− Commercial and administrative buildings, for a net value of DZD 366 Million;
− Installations for a net amount of DZD 105 Million;
− Fitting and interior layout for a value of DZD 44 Million.
LIABILITIES II . LIABILITIES
a) Deposits from financial institutions
Composed of 100% of at sight, these accounts "at sight" with an amount of DZD 808 Million,
includes essentially , the credit balances of the accounts with local banks for “Cheques for
collection & Certified cheques” in our books with an amount of DZD 50 Million, and the
cheques issued by our branches and non cashed yet by the carriers (drawer) with DZD 758
Million.
b) Customers’ Deposit accounts
In 2005, the accounts "at sight", showed an increase compared to 2004, i.e. from DZD 9 599
Million in 2004 to DZD 12 874 Million in 2005. In addition, the ’’term deposit" increased
from DZD 3 937 Million in 2004 to DZD 4 279 Million in 2005
c) Certificate of Deposits
This heading, shows the cash deposit vouchers by the customers and showed a slight decrease
of l%, from DZD 2 064 Million in 2004 to DZD 2 043 Million in 2005.
d) General Provisions
Compared to 2004, these accounts showed an increase of 2% from DZD 280 Million in 2004 to
DZD 287 Million in 2005, further to the increase in the loan portfolio of the bank in 2005

e) Capital
During the year 2005 the unpaid share capital was paid in full, therefore the full paid up capital
was increased from DZD 1926.6 million to 2670 millions. The paid up share capital was of
DZD 743.4 million.
f) Reserves
Reserves were subject of 71% decrease, which is DZD 689, 6 million in 2004 and 202 million
in 2005, due to the non mandatory reserves transferred to the unpaid share of capital.
Off Balance Sheet Items
A.
I. Credit Commitments
The total balance is DZD 12 337 Millions & the sub account is as follow:
1. Credit for financial institutions: DZD 251 Millions a decrease of 82% compared to 2004 ;
2. Credit for customers: DZD 8 476 Millions increase of 218% compared to last year
balances ;
3. Letter of Guarantees issued to the order of the financial institutions: DZD 2 451 Millions,
With a slight decrease compared to year 2004
4. Letter of Guarantees issued to the order of customers: DZD 1 156 Millions ;
5. Others : DZD 3 Millions.
II. Guarantees
Total balance of DZD 10 801 Millions compared with DZD 7 770 Millions in 2004, 39% increase.
Sub accounts are as follow :
1- For financial institutions: DZD 8 519 Millions with 82% increase compared to figures of
2004 ;
2- Others: DZD 2 281 Millions versus DZD 3 082 Million in 2004.

ARAB BANKING CORPORATION, DIRECTORY
Head Office:
ARAB BANKING CORPORATION, Tower, Diplomatic Area,
PO Box 5698, Manama, Kingdom of Bahrain
Tel:
(973) (17) 543000 (General),
(973) (17) 533144 (Money Market)
(973) (17) 533155 (Options)
(973) (17) 533044 (Foreign Exchange)
Fax: (973) (17) 533163/533062
Tlx:
9432 ARAB BANKING CORPORATION,BAH BN (General),
9384 ARAB BANKING CORPORATION, DEP (Foreign Exchange).
Reuters Dealing Code: ABMM-ARAB BANKING CORPORATION,Z (Monitor), ARAB
BANKING CORPORATION,D (FX), ARAB BANKING CORPORATION,B (Options),
ABDB (Money Market).
Internet: http://www.arabbanking.com.
E-mail: webmaster@arabbanking.com
Branches
Tunis (OBU)
ARAB BANKING CORPORATION, Building
Rue du Lac d'Annecy, Les Berges du Lac,
1053 Tunis, Tunisia
Tel: (216)(71) 861861;
(216)(71) 861110 (Treasury).
Fax: (216)(71) 860921.
Tlx: 12505 ARAB BANKING CORPORATION,TU TN.
E-mail: Arab Banking Corporation,.tunis@arabbanking.com.
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,T
Swift: ARAB BANKING CORPORATION,OTNTT
Representative Offices
Abu Dhabi
10th Floor, East Building, Second Street,
Abu Dhabi Mall
PO Box 6689, Abu Dhabi, UAE
Tel: (971)(2) 6447666
Fax: (971)(2) 6444429
E-mail: Arab Banking Corporation,rep@emirates.net.ae

Tehran
No. 114, 1st Floor (opposite 35th St.)
Khaled Eslamboli Avenue
Tehran 15167, Islamic Republic of Iran.
Tel: (98)(21) 8798452/3
Fax: (98)(21) 8774561
Tlx: 216860 ARAB BANKING CORPORATION, IR
E-mail: arabbanking.teh@vessal.net
Tripoli
That Emad Administrative Centre
Tower 5, 16th Floor
PO Box 3578, Tripoli, Libya.
Tel: (218)(21) 3350226/ 3350227/3350228
Fax: (218)(21) 3350229
E-mail: Arab Banking Corporation,_rep_ly@lttnet.net
Subsidiaries
ARAB BANKING CORPORATION, Islamic Bank (E.C.)
ARAB BANKING CORPORATION, Tower, Diplomatic Area
PO Box 2808, Manama, Kingdom of Bahrain.
Tel: (973) (17) 543000
Fax: (973) (17) 536379/533163
Tlx: 9432/9433 ARAB BANKING CORPORATION, BAH BN
ARAB BANKING CORPORATION, Securities W.L.L.
Office No 204, Building No 49,
Al Hidaya Building No 2,
Government Road, Manama 304, Kingdom of Bahrain.
Tel: (973) (17) 226087/226848
Fax: (973) (17) 241179
Tlx: 9436/9437 ARAB BANKING CORPORATION,BAH BN
ARAB BANKING CORPORATION, Tunisie
ARAB BANKING CORPORATION, Building, Rue du Lac d'Annecy, Les Berges du Lac,
1053 Tunis, Tunisia.
Tel: (216)(71) 861861;
(216)(71) 861110 (Treasury)
Fax: (216)(71) 860921
Tlx: 12505 ARAB BANKING CORPORATION,TU TN
E-mail: Arab Banking Corporation,.tunis@arabbanking.com
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,T
Swift: ARAB BANKING CORPORATION,OTNTT

Arab Banking Corporation (Jordan)
(16 Branches)
PO Box 926691, Amman 11190, Jordan.
Tel: (962)(6) 5664183-5/5621801-7 (General)
(962)(6) 5692713/5692723 (Dealing Room)
(962)(6) 5608302 (Foreign Department)
(962)(6) 5623684 (Main Branch)
Fax: (962)(6) 5686291 (General)
(962)(6) 5623685 (Main Branch)
Tlx: 22258/21114 ARAB BANKING CORPORATION, JO; 23022 ARAB BANKING
CORPORATION,FX JO
E-mail: info@arabbanking.com.jo
Arab Banking Corporation - Algeria
PO Box 367
54 Avenue des Trois Freres Bouaddou, Bir Mourad Rais
Algiers, Algeria.
Tel: (213)(21) 541503/541515/541534
Fax: (213)(21) 541604/541222
Tlx: 62509 / 62510 ARAB BANKING CORPORATION, DZ
E-mail: Arab Banking Corporation,bank@wissal.dz
Swift: ARAB BANKING CORPORATION, O DZ AL
Arab Banking Corporation – Egypt (S.A.E.)
1, El Saleh Ayoub St.
Zamalek
Cairo, Egypt.
Tel: (202) 7362684 (10 lines) / (202) 76364254
Fax: (202) 7363643
Email: Arab Banking Corporation,egypt@arabbanking.com.eg
Affiliate
Arab Financial Services Company (E.C.)
PO Box 2152, Manama, Kingdom of Bahrain.
Tel: (973) 17 290333
Fax: (973) 17 291323/290050
Tlx: 7212 AFS BN

International Division
Branches
Grand Cayman
c/o ARAB BANKING CORPORATION, New York Branch
32nd Floor, 277 Park Avenue
New York, NY 10172-3299,USA.
Tel: (1)(212) 5834720
Fax: (1)(212) 5830921
Tlx: 661978/427531 ARAB BANKING CORPORATION,NY
Milan
Via Turati 16/18
20121 Milan, Italy.
Tel:
(39)(02) 863331 (General);
(39)(02) 861574 (Dealing Room)
Fax: (39)(02) 86450117
Tlx:
322240 ARAB BANKING CORPORATION, Mil (General);
322080 ARAB BANKING CORPORATION, FX I (Dealing Room)
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,X
SWIFT: ARAB BANKING CORPORATION,OITMM
New York32nd Floor, 277 Park Avenue
New York, NY 10172-3299, USA
Tel: (1)(212) 5834720
Fax: (1)(212) 5830921
Tlx: 661978/427531 ARAB BANKING CORPORATION,NY(General);
421911/661979 ARAB BANKING CORPORATION,FX (Dealing Room)
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,N
Singapore
Arab Banking Corporation (B.S.C.)
9 Raffles Place #35-01 Republic Plaza Singapore 048619
Tel: (65) 65359339 General
(65) 6533 0629 Dealers
Telex & Answerback: RS 28989 ARAB BANKING CORPORATION,SNG General
RS 28991 ARAB BANKING CORPORATION,SNG Dealers
Fax:
(65) 6532 6288 / 6532 3998 General
SWIFT:
ARAB BANKING CORPORATION,OSGSG
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,S
Representative Offices
Houston
600 Travis Street, Suite 1900
Houston, Texas 77002, USA
Tel: (1)(713) 2278444
Fax: (1)(713) 2276507

Subsidiaries
ARAB BANKING CORPORATION, (IT) Services Ltd.
Arab Banking Corporation House
1-5 Moorgate, London EC2R 6AB, UK
Tel: (44)(20) 77764050
Fax: (44)(20) 76062708
Tlx: 915687 ARAB BANKING CORPORATION, G
E-mail: Arab Banking Corporation,its@arabbanking.com
Arab Banking Corporation - Daus & Co GmbH
Niedenau 13-19,
D-60325 Frankfurt am Main,
PO Box 170218,
60076 Frankfurt am Main, Germany.
Tel: (49)(69) 714030
Fax: (49)(69) 71403240 (General);(49)(69) 71403299
- Board of Management
- Corporate and Financial Institutions
- Structured Export Finance
(49)(69) 71403350 (Treasury)
Tlx: 414811 DAUS D
Direct Dealing Reuters Code: ABDF (FX + MM)
Swift: ARAB BANKING CORPORATION,ADEFF
e-mail: daus.Arab Banking Corporation,@arabbanking.com
ARAB BANKING CORPORATION, International Bank plc (Head Office)
Arab Banking Corporation House
1-5 Moorgate, London EC2R 6AB, UK
Tel: (44)(20) 7776 4000
Fax: (44)(20) 7606 9987
Tlx: 893748 ARAB BANKING CORPORATION, GEN G
ARAB BANKING CORPORATION, International Bank plc (London Branch)
Arab Banking Corporation House
1-5 Moorgate, London EC2R 6AB, UK
Tel: (44)(20) 7776 4000 (General);
(44)(20) 7726 4091 (Dealing Room)
Fax: (44)(20) 7606 9987 (General)
(44)(20) 7606 1710 (Dealing Room)
Tlx: 893748 ARAB BANKING CORPORATION, GEN G (General);
892171 ARAB BANKING CORPORATION, FXL G (Dealing Room)
Direct Dealing Reuters Code: ARAB BANKING CORPORATION,L
ARAB BANKING CORPORATION, International Bank plc (Paris Branch)
49/51 Avenue George V
75008 Paris, France
Tel: (33)(1) 49525400
Fax: (33)(1) 47207469

Tlx:
648343 ARAB BANKING CORPORATION, F (General)
Investment Group
Banco ARAB BANKING CORPORATION, Brasil S.A.
Avenida Paulista 37, 14th/15th Floors
CEP 01311-902, Sao Paulo, SP. Brazil
Tel: (55)(11) 31702000
Fax: (55)(11) 31702001
Banco Atlantico S.A.
(288 Branches)
Gran Via 48, 28013 Madrid, Spain
Tel: (34)(91) 5389000
Fax: (34)(91) 5415474
Tlx: 22009/22109 ATLCO E
International Bank of Asia Ltd.
(24 Domestic Branches)
International Bank of Asia Bldg.
38 Des Voeux Road, Central,
Hong Kong
Tel: (852) 28426222
Fax: (852) 28101483
Tlx: 63394 IBA HX
Direct Dealing Reuters Code: IBAX
e-mail: corpcomm@iba.com.hk
ARAB BANKING CORPORATION, Securities (Egypt) S.A.E
1, El Saleh Ayoub St.Zamalek
Cairo, Egypt
Tel: (202) 7362684 (10 lines) / (202) 76364254
Fax: (202) 7363643