Arab Bank: H1 net profit hits $424.9 mln
Arab Bank Group registered first half net profit after taxes and provisions of $424.9 million, compared to $422.9 million for the same period a year earlier.
“The results were driven by the Arab Bank’s well diversified business model which enables it to perform consistently and withstand the volatile market challenges.” The bank said in a statement on Sunday.
Loans and advances reached $24.2 billion while customer deposits remained stable at $34.8 billion. Excluding the effect of foreign currency devaluations, both loans and customer deposits grew by 3 percent.
Sabih Masri, Arab Bank’s Chairman, stated that the bank was able to achieve these results due to the successful execution of its strategy, and its focus on core banking activities.
“The Bank is reinforcing its leading position in the region and enhancing its market share across its wide network of branches.” Masri added.
Nemeh Sabbagh, Arab Bank’s CEO, said despite the challenging environment the results affirm the bank’s ability to deliver strong profitability while maintaining a solid balance sheet.
Loan quality remains strong with the provisions coverage ratio exceeding 105 percent, excluding the value of collaterals held.
Sabbagh emphasised that the bank is still focusing on preserving its high asset quality. Liquidity continues to be strong with a loan to deposit ratio of 69.5 percent and shareholders equity is at $8.1 billion.
He further added that the results of the United Kingdom’s European Union membership referendum has had no impact on the Arab Bank, although the long term implications of Britain’s exit from the EU would not be known for a while.
Arab Bank was named the “Best Bank in the Middle East” for the year 2016 by “Global Finance”, the New York-based magazine for finance.
Arab Bank, headquartered in Jordan, is the largest global Arab banking network with over 600 branches spanning five continents. Arab Bank is also present in key financial markets and centers such as Egypt, London, Dubai, Singapore, Geneva, Paris, Frankfurt, Sydney, and Bahrain.
