Arab News Business Economy

Arab Bank Group Posts Impressive 59% Profit Growth

Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 2% & 5%, respectively….reports Asian Lite News

Arab Bank Group announced strong financial results for the first half of 2023.

The Group’s solid performance was attributed to the robust expansion of its core banking business in various markets, resulting in a remarkable 59% increase in net profit after tax, reaching $401 million compared to $252 million for the corresponding period last year.

The Group maintained its strong capital base with a total equity of $10.6 billion. Loans grew to $36.1 billion and deposits reached $48.3 billion. Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 2% & 5%, respectively.

Mr. Sabih Masri, Chairman of the Board of Directors, stated that the solid financial performance during the first six months underscores the resilience of the bank’s diversified business model that is based on prudent risk management practices and focused on achieving sustainable growth. Mr. Masri emphasized on the bank’s commitment towards the execution of its innovation and digital transformation strategy to deliver the best banking experience to our clients.

Ms. Randa Sadik, Chief Executive Officer, stated that the strong financial results despite the volatility in the operating environment is a testament to the bank’s robust assets base and strong capitalization. Ms. Sadik highlighted that the bank’s net operating income grew by 50% driven by diversified core banking activities coupled with controlled operating expenses. Provisions held during the period reflect the bank’s prudent risk management strategy against the increased economic uncertainty witnessed globally and regionally.

Ms. Sadik added that the bank is well positioned for sustained earnings growth with the support of its solid financial position, strong capitalization, and high liquidity levels. The Group’s loan-to-deposit ratio stood at 74.7% and credit provisions held against non-performing loans continue to exceed 100%. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.8%.

In line with the bank’s commitment towards sustainability, Arab Bank recently released its 13th annual sustainability report featuring its achievements during 2022 on the environmental, social, and governance (ESG) fronts.

Arab Bank was named the “Best Bank in the Middle East for 2023” by Global Finance magazine for the eighth consecutive year. The bank also received the “Best ESG Integration in Jordan” award from The Arab Federation of Capital Markets in collaboration with the Global Economics Magazine.

ALSO READ: Saudi all set to become a global biotech hub

ALSO READ: Social Development Bank hits another milestone