Arab Bank Group reported a net profit after tax and provisions of $577.2 million last year, a growth of 15 per cent compared to the profit reported in the previous year.

To enhance the bank's capital adequacy ratio and to further expand its business, the bank's board of directors recommended distributing dividends of 24.5 per cent for the year, made up of cash dividends of 12 per cent and distribution of two free shares for every sixteen shares, said a report in the Gulf Daily News (GDN), our sister publication.

The bank said it managed to grow loans and advances by 3pc to $23.7 billion, compared to December 2013, while customer deposits grew by two per cent to $35 billion.

Adjusting for the impact of exchange rates and extraordinary items, loans and customer deposits grew by nine per cent and seven per cent respectively.

Commenting on the results, Arab Bank chairman Sabih Masri explained that these results affirm the banks ability to deliver strong results, maintain a solid balance sheet and a quality portfolio.

Loan quality remains very strong with no increase in non-performing loans and a provisions coverage ratio in excess of 100 per cent, excluding the value of collaterals held.

Arab Bank chief executive Nemeh Sabbagh said the bank succeeded in growing its operating income benefiting from its diversified business model, and controlling operating expenses.

Key financial indicators remain strong with a loan-to-deposit ratio of 67.7 per cent.

Capital adequacy ratio reached 14.8 per cent as at end of December last year.

As to the lawsuit filed against the bank in New York, the bank said it was confident of the soundness and strength of its legal position in the appeal stage.

Masri said he was confident of the bank's ability to maintain sustainable growth in profits.

The bank's results are subject to the final approval of the Central Bank of Jordan. - TradeArabia News Service