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Arab Bank Group reports profits of $436 million.

Jessica Combes

Arab Bank Group reported net income after tax for the six months period ended 30 June 2018 of $436 million compared to $415 million in prior period, recording a growth of five per cent. The Group's net income before tax grew by 6.4 per cent to reach $582 million with net operating income reaching $ 668.5 million and recording a solid double-digit growth of 13 per cent.

Sabih Masri, Chairman of the Board of Directors stated that the solid performance of Arab Bank Group confirms the success of the Group in dealing with the challenging operating environment.

Nemeh Sabbagh, Chief Executive Officer, stated that the strong underlying performance of Arab Bank Group is reflected in the growth in net operating income achieved during the first half of the year and which was driven by core banking income generated from interest and fees coupled with effective cost management. Net operating income grew by 13 per cent and net interest income went up by 12 per cent as a result of yield improvements and loan growth. Loans grew by 3 per cent to reach $25.5 billion while customer deposits reached $33 billion.

Sabbagh remarked that Arab Bank Group enjoys strong liquidity and robust capitalisation. The Group's loan-to-deposit ratio stood at 71.6 per cent, while the capital adequacy ratio calculated in accordance with Basel III regulations is 15.4 per cent. He added that the asset quality of the Group remains high, with credit provisions held against non-performing loans exceeding 100 per cent.

Masri concluded by remarking that the broad diversification of the business model and geographic profile of Arab Bank Group will continue to support the strong financial performance of the Group and its position in its markets.

The 30 June 2018 financial statements are subject to the approval of the Central Bank of Jordan.

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Publication:CPI Financial
Article Type:Financial report
Date:Jul 29, 2018
Words:322
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