Friday 17 September 2021

Arab Bank Group's net profit jumps 20pc in H1

AMMAN, July 31, 2021

Jordan-based Arab Bank Group has reported a net income after tax of $182.4 million for the first half compared to $152.1 million for the same period last year, recording a growth of 20%. 
During the first quarter of 2021, Arab Bank consolidated the financial statements of Oman Arab Bank under its group accounts increasing total assets by $8.2 billion to reach $63 billion compared to $51.6 billion for the same period last year. 
Oman Arab Bank has also recently finalized the acquisition of Al Izz Islamic Bank, a full-fledged Islamic bank, strengthening its presence in Oman, stated the Jordan-based bank.
Customer deposits grew by 28% to reach $46 billion, while loans grew by 27%, to reach $33.8 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7 billion and $7.2 billion, it added.
On the solid performance, Chairman Sabih Masri said the results demonstrate the strength of the bank’s diversified business model and its resilient performance in this challenging economic environment.
CEO Nemeh Sabbagh said despite the negative economic consequences of the pandemic, the bank's robust performance confirms its effectiveness in operating in a challenging economic environment as net operating income increased by 6% to reach $579.8 million. 
The group also enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.5%, equity of $10.3 billion, and a capital adequacy ratio of 16.7%, he stated, while  speaking at the board meeting which was held recently.
At the meeting, the board gave approval to the appointment of Mahmoud Malhas as its deputy chairman.
Meanwhile, CEO Sabbagh has announced his desire to retire at the end of this year. An industry veteran, Sabbagh has had a distinguished 47 year international career in banking and finance. He had been the CEO of Arab Bank for the past 12 years.
During the meeting, Sabbagh had recommended to the board the appointment of Randa Sadik as his successor. Sadik has been holding the position of Deputy CEO since 2010. The recommendation was welcomed by the Board of Directors.
Lauding the results, Masri said he was confident in the Arab Bank Group’s ability to maintain its solid financial indicators. 
"We remain committed to sustainable community development, and to fostering the interests of our customers, shareholders and communities," he added..-TradeArabia News Service


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