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Abu Dhabi, UAESaturday 15 December 2018

Arab Bank net operating income up 12 per cent

Arab Bank in Amman, Jordan.Mohammed Hamed/Reuters
Arab Bank in Amman, Jordan.Mohammed Hamed/Reuters

Arab Bank Group closed 2017 with solid results, reporting a growth in net operating income of 8 per cent as compared to the prior year.

Excluding the effect of foreign currency devaluations, net operating income achieved growth of 12 per cent, said the lender, based in Amman, Jordan. Net income after tax was $533 million as compared to $532.7m in 2016, while loans and advances grew by 6 per cent to reach $25.1 billion.

Arab Bank said in view of the results, the board of directors has recommended to the shareholders the distribution of 30 per cent cash dividends for the financial year 2017.

Sabih Masri, the chairman said the strong performance of Arab Bank Group confirmed the success of the group in dealing with the challenging and changing operating environment.

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Nemeh Sabbagh, the chief executive, said the results were driven by sustainable growth in the underlying business, spread improvements and well controlled expenses. Mr. Sabbagh remarked that Arab Bank Group enjoys strong liquidity and robust capitalisation.

As of 31 December 2017, the group’s loan-to-deposit ratio stood at 74 per cent, whilst the capital adequacy ratio calculated in accordance with Basel III regulations is at 15.3 per cent. He added that the asset quality of the group remains to be high, with its non-performing loans ratio at 5.2 per cent, and credit provisions held against non-performing loans at 100 per cent, excluding the value of collaterals.

Mr Masri the results "will continue to support the continuous improvement in the financial performance of the group and its position in its markets".

The 2017 financial statements are subject to the approval of the Central Bank of Jordan.