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Arab Bank Group posts 13% growth in profits and 25% distribution of dividends

Jordan: Monday, February 06 - 2012 @ 15:55

These positive results reflect the success of the Bank, through its prudent and conservative policies, in dealing with the regional and international developments.

Despite the Bank’s presence in more than one country that have witnessed political, economic, and social developments, the Bank was able to achieve a growth in operating profits in most of these countries. It also insulated itself from any adverse developments in Libya by deconsolidating the financial statements of Wahda Bank from the Group financial statements last June.

The 13% growth in net profit was also accompanied by an improvement in the main financial indicators, enjoying a strong balance sheet and robust capitalization. The capital adequacy ratio has reached 15.1%, far exceeding and almost double the 8% minimum required by the Basel Committee and higher than the minimum required by the Central Bank of Jordan of 12%. On the other hand, the Group grew its deposits by more than $1bn to reach $31.7bn, thereby boosting liquidity, traditionally a hallmark of strength for Arab Bank.

Commenting on the results of the group, Mr. Abdel Hamid Shoman, Chairman of the Board said that the growth in total deposits reflects the high level of confidence of customers in the financial strength of Arab Bank, and highlighted that these results were achieved through the Bank’s concerted efforts to enhance liquidity and capital adequacy, and through effective risk

management. Mr. Abdel Hamid Shoman added that these results will add to the strength of the bank’s capital base, which has reached $7.7bn at the end of 2011.

Mr. Nemeh Sabbagh, Chief Executive Officer of Arab Bank, highlighted that the Bank has managed to achieve its principal goals in 2011 in spite of the unexpected conditions in the region that emerged at the beginning of the year. The Bank focused on increasing its operating profits through revenue growth and expense control. Expenses during the year showed nil growth.

Mr. Sabbagh added that the bank has continued to improve the quality of its credit portfolio, and has in this respect increased the provisions coverage ratio to reach more than 100% of non-performing loans, excluding the value of collaterals.

Thanks to these positive results and the Bank’s strong financial position, the Board of Directors of Arab Bank plc has recommended an increase in the distribution of profits to shareholders to 25% for 2011 as compared to 20% in 2010.

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Monday, February 6- 2012 @ 15:55 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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