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02 February 2020
ISLAMIC BANKING

Arab Bank Group reports a 3.2 per cent increase in 2019 net profits

In view of the solid results, the board of directors recommended the distribution of 30 per cent cash dividends to the shareholders for the 2019 financial year, making a total dividend pay-out of over $ 270 million.

The bank’s total expenses recorded a decrease of three per cent from 2018/Bloomberg

by Kudakwashe Muzoriwa

Jordan’s Arab Bank Group has reported a 3.2 per cent increase in its full-year net profit owing to higher revenues and lower expenses.

Arab Bank Group, the largest bank in Jordan, stated that its net profit after tax for the year ending 31 December 2019 reached $846.5 million compared to $820.5 million in 2018. Similarly, net income before tax increased by $ 1.15 billion compared to $ 1.12 billion in 2018, while the banking group equity expanded to reach $9.102 billion with a return on equity of 9.3 per cent.

Nemeh Sabbagh, the Chief Executive of Arab Bank, said, “Arab Bank continues to deliver consistent and sustained growth while investing for the future through the prudent and efficient deployment of capital, and by building a resilient balance sheet through its disciplined and proactive approach to risk management.”

The bank stated that its revenues grew 4.6 per cent year-on-year to $ 2.23 billion and these were been generated broadly from both the local and international network, with the latter comprising close to 70 per cent of total revenues.

Sabih Masri, the Chairman of Arab Bank’s Board of Directors, said that the broad network of the bank across the region and globally provides the benefit of diversified sources of income.”

Furthermore, Arab Bank Group’s net operating income increased by five per cent owing to the growth in interest and fee income. Credit facilities increased by $ 26.1 billion, a 1.2 per cent year-on-year growth while customer deposits increased by six per cent to reach $36.2 billion.

Arab Bank Group’s loan-to-deposit ratio stood at 72.1 per cent while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.2 per cent. Additionally, the bank’s asset quality remains high and credit provisions held against non-performing loans continue to be above 100 per cent.

“Arab Bank Group maintains a well-funded balance sheet, strong liquidity and robust capital position,” added Sabbagh.


RELATED STORIES: net profit Arab Bank Group

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