ABC posts $587m loss

Bahrain-based Arab Banking Corp said it aims to raise $1 billion (Dh3,67bn) by selling shares to existing stakeholders, after reporting its second quarterly loss on exposure to the US sub-prime mortgage crisis.

ABC posted a loss of $587 million in the first quarter ended on March 31, compared to a profit attributable to shareholders of $70m a year earlier, the bank said in a statement late on Wednesday.

"The loss was almost entirely driven by significant exposure to structured investment vehicles and collateralised debt obligations," the bank said, referring to financial instruments in which US sub-prime loans were packaged. Gulf officials, including central bankers, have repeatedly said the region's banks are largely shielded from the crisis triggered by defaults on US sub-prime mortgages. (Reuters)

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