Despite the challenges arising from the Arab spring and the deteriorating eurozone crisis, Arab Banking Corporation (ABC) reported a US$204mn net profit in 2011.

This marks a 43% increase from 2010 year-end.

Strong revenues from treasury, trade finance and retail business lines in the Arab world boosted the bank’s earnings with significant contribution from its Brazilian subsidiary, ABC says is a statement.

The bank has continued to de-risk and deleverage its balance sheet resulting in comfortable liquidity levels being maintained throughout 2011, as ABC’s total assets declined 11% to US$25mn. Its liquid assets to deposits ratio at 2011 year-end was 64%.

ABC’s capital adequacy ratio by 2011 year-end also reached strong levels of 24.3%, of which 19.2% was predominantly tier 1 capital.

Hassan Juma, president and chief executive of ABC, comments: “Proactive and prudent management ensured strong results in an exceptionally challenging year. It is particularly satisfying to see that all ABC units and product segments contributed to the remarkable performance. It is fitting that the international rating agency S&P has removed the negative credit watch and reaffirmed ABC’s investment grade rating (BBB-) with a stable outlook.”