Français/English - Arab Banking Corporation, ALGERIA

Review of Operations
l A second training course entitled “Credit Culture Transformation
(CCT)” was held on corporate customer credit analysis, including
e-learning, financial performance and credit risks.
THE BANK’S FUNDAMENTAL OBJECTIVES
l To assure optimum profitability for shareholders;
l To attract customers and make them loyal in order to increase
its market share;
l To support and promote the bank’s personnel, to make them
loyal staff members;
l To define a medium term 2011/2015 strategy to assure
continuous growth and make significant margins;
l To offer new products and ensure a better quality of service;
l To extend its network and its area of intervention;
l To reinforce the granting of loans to companies;
l To optimise the bank’s human and logistics resources;
l To comply with and ensure compliance with banking ethics and
regulations.
CORPORATE FINANCING – CORPORATE BANKING
By opening 5 new branches, including one in Annaba and
another in Bejaia, two of the country’s major industrial and
commercial centres, we are targeting new “Corporate” customers
by being closer to them to offer them our services.
In the year 2012, with a greater focus on business and a more
sustained appetite in terms of risk, as well as a reorganisation of
the Corporate department to have greater focus on business, the
Corporate segment and, its underlying, Trade Finance, continue
to be a real driving force for the bank’s business, with the
consolidation of their position within the bank.
The Corporate segment saw a very significant increase in its
level of business. Thus, credit volumes reached the amount of
DZD19,092 million, compared to DZD12,901 million in 2011.
This increase in volume generated revenue of DZD1,212 million
whereas this only amounted to DZD848 million in 2011.
Indirect commitments, namely sureties and other guarantees,
for their part, increased to DZD13,787 million, compared to
DZD10,680 million in 2011. This volume generated revenue of
around DZD131 million, whereas it only amounted to DZD63
million in 2011.
TRADE FINANCE
In 2012, ABC Algeria had to open 2,950 Documentary Credits
for a volume of USD806 million, i.e. down by 2.5% in number
and 0.5% in volume. It had to process 3,522 documents for
an amount of USD836 million and settle 3,670 Documentary
Credits for an amount of USD851 million. It also settled 1,068
Documentary Remittances for a volume of USD122 million,
a significant increase compared to last year. As regards
International Guarantees, ABC Algeria received 119 for a volume
of USD89 million, i.e. practically the same level as for 2011 in
volume, but down in terms of number.
Furthermore, it issued 11 Export Counter-Guarantees for an
amount of USD275,000.00.
With regard to the earnings of this segment, it generated, for
direct products alone, DZD696 million, whereas this figure was
DZD649 million in 2011.
RETAIL BANKING
ABC Algeria has been developing the retail individuals market
since 2006. It aims to boost it by diversifying its range of
products. Several approaches were initiated in order to respond to
the specific demand of this category of customers.
The year 2012 was particularly rich in events to improve property
loans in order to offer a wider range of products, but also to
facilitate and have better control over granting these types of
loans. The annual reviews of the property loan (SOUKNA) and
BFS (SANAD) products also enabled the bank to make radical
changes in view of supporting a high intensity sales strategy
for the coming years. Thus, the range of SOUKNA property loans
was increased with new types, particularly land purchase and
construction/extension. Today, the SOUKNA products respond to
almost all property financing needs and enable ABC Algeria to
become a first-choice partner for these types of loans.
The SOUKNA range has 5 sub-products:
1. Purchase of property
2. Purchase of land
3. Construction/extension
4. Mortgage refurbishment
5. Mortgage-free refurbishment
With Regard to business sectors, the year 2012 was characterised
by a significant growth in our financing for automotive industry
players and the putting in place of a loan of almost DZD4
billion (USD50 million) for a property development company.
Furthermore, our distinctive services for leasing companies
matured to make ABC Algeria a first-choice partner for this type
of establishment.
Finally, in 2012, the bank opened up 1,264 Corporate accounts,
compared to 548 accounts last year, which means a 131%
growth rate.
17