Arab Bank Group net profit (after taxes and provisions) for the first quarter of 2013 reached USD205.1million, compared to USD 204.4 million in the first quarter of last year. Net adjusted operating income (excluding one off mark to market effects) grew by 7% compared to the same period of last year, reflecting the robust performance of the bank despite the challenging environment in the region.
Mr. Sabih Masri, Arab Bank’s Chairman commented that growth in net operating income came as a result of an increase in net interest income and good control over operating expenses which decreased compared to March 31, 2012.
Mr. Masri also added that these financial results show an improvement in the Group’s performance as its efficiency ratio (operating expenses to operating revenue) improved from 40% last year to 38.9%this year.
Mr. Nemeh Sabbagh, Arab Bank’s CEO stated that the Bank remains committed to its prudent credit policies and that loan provisions decreased by 35% from those set aside last year.The Bank’s provisions coverage fornon performing loans stood at a healthy115%, excluding the value of collaterals held.
Mr. Sabbagh also commented thatthe Group maintained high levels of liquidity with the net loan-to-deposit ratio at a very strong level of 62.2%, and maintained its high capital adequacy ratio at 15.04%.
Mr. Masri concluded by expressing his confidence in the bank’s ability to continue to grow its business across the bank’s large network based on sound policies and strategies.