Arab Bank reports 20% growth in profit

Emirates Business

Arab Bank Group announced its 2016 results reporting a growth of 20% in net profits. Net operating income before provisions and taxes exceeded US$1.1 billion, whilst the Group’s net profit after tax reached $533 million for the year 2016 as compared to US $ 442 million for 2015.
Excluding the effect of foreign currency devaluations, the Bank has shown a consistent solid growth during 2016 whereby loans and advances grew by 6% to reach USD 23.7 billion and customer deposits grew by 3% to reach USD 33.6 billion.
Sabih Masri, Chairman of the Board of Directors stated that the strong performance of Arab Bank Group confirms the success of the Group in dealing with the challenging and changing operating environment and reflects the Group’s prudent operating policies.
Nemeh Sabbagh, Chief Executive Officer, stated that Arab Bank Group enjoys strong liquidity and robust capitalization. As of December 31, 2016, the Group’s loan-to-deposit ratio stood at around 70%, whilst capital adequacy ratio calculated in accordance with the new Basel III regulations has improved further to reach 15.7%. He added that the asset quality of the Group remains to be high, and that credit provisions held against non-performing loans continue to exceed 100%, excluding the value of collaterals held.
Masri concluded by remarking that the encouraging results will continue to support the continuous improvement in the financial performance of the Group and its position in its markets.
Arab Bank was named the “Best Bank in the Middle East for 2016” and the “Best Trade Finance Bank in the Middle East” by Global Finance magazine, “Best Bank in the Middle East for 2016” by Asia Money magazine. In addition, the Bank has received the award of “Best Cash Management Services in the Middle East” from EMEA Finance, the “Best Trade Bank in the Middle East” award from Trade & Forfaiting Review magazine and “The cash manager of the year in the middle East” award from the Global Investor/ISF. Furthermore, Arab Bank was also named the “Best Bank in Jordan” by Global Finance, Euromoney, EMEA Finance, Asia Money & the Banker-Financial Times.
In view of the results, the Board of Directors has recommended to the shareholders the distribution of 30% cash dividends for the financial year ended December 2016.
The 2016 financial statements are subject to the approval of the Central Bank of Jordan.