Abu Dhabi, UAEFriday 22 November 2019

Arab bank’s profit rises 4% to $669 million in first nine months

Lender says improved bottom line was driven by growth in core banking income

Arab Bank in Amman, Jordan. The lender had a strong first nine months. Reuters
Arab Bank in Amman, Jordan. The lender had a strong first nine months. Reuters

Arab Bank Group, Jordan’s largest lender and the biggest publicly-traded company on the Amman bourse, reported a 4 per cent increase in its nine-month net profit due to higher interest income.

Net profit for the year to September 30 increased to $669 million (Dh2.4 billion), the lender said in a statement on Monday, but it did not provide financial statements showing prior year performance.

The increase in profit was driven by growth in core banking income, with net interest income increasing 5 per cent, according to the chief executive of Arab Bank, Nemeh Sabbagh.

Total loans increased 3 per cent during the nine-month period to $26.1bn, and deposits increased 4 per cent to $34.7bn.

Arab Bank has a network of about 600 branches and operations in five continents, according to its website.

Mr Sabbagh said Arab Bank enjoys a high rate of liquidity and a robust balance sheet. The group’s capital adequacy ratio stood at 15.8 per cent and its loan-to-deposit ratio stood at 76.9 per cent as of June 30.

The asset quality of the group also remains high and credit provisions held against non-performing loans exceed 100 per cent, he added.

Despite the continued slowdown of economic growth in the region, the bank continues to deliver strong financial performance, Sabih Masri, chairman of the board of directors said.

"It affirms the bank’s effective management of risks and its ability to deal with the challenging environment," he added.

Updated: October 29, 2019 11:30 AM

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