Arab Bank records $218M net profit in Q1 2017

Published May 1st, 2017 - 09:16 GMT
Headquartered in Amman, the Arab Bank is one of the Arab world's largest privately-owned banks and operates in 30 countries as of January 2016. (AFP/ File)
Headquartered in Amman, the Arab Bank is one of the Arab world's largest privately-owned banks and operates in 30 countries as of January 2016. (AFP/ File)

The Arab Bank Group has reported a net profit after tax of $218.2 million during the first quarter of 2017, compared to $218.3 million in the same period last year.

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Net operating income before provisions and taxes reached $290 million driven by growth in the underlying core banking revenue.

Excluding the effect of foreign currency devaluations, the bank’s net operating income would have shown a growth of 7 percent.

Customer deposits stood at $33 billion, while the loans and advances increased by 3 percent to reach $24.4 billion.

Sabih Masri, chairman of the Board of Directors, stated that the strong performance of the Arab Bank Group confirms the success of the Group in dealing with the challenging environment.

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Nemeh Sabbagh, chief executive officer, stated that the Arab Bank Group enjoys high liquidity and strong capitalization. As of 31 March 2017, the Group’s loan-to-deposit ratio stood at 68.4 percent, whilse capital adequacy ratio calculated in accordance with the new Basel III regulations reached 15.5 percent.

He added that the asset quality of the Group remains high, and that credit provisions held against non-performing loans continue to exceed 100 percent, excluding the value of collaterals held.

Masri concluded by remarking that the encouraging results will continue to support the improvement in the Group’s performance to deliver a sustainable growth.

The Arab Bank was named the Best Bank in the Middle East for 2017 and 2016 by Global Finance magazine.


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