Arab Bank Group records 43% growth in net profits
Arab Bank Group reported record growth in 2013 in spite of the challenging environment in the region. Net operating income before provisions and taxes exceeded the $1bn, whereas the group’s net profit after tax reached $501.9m at the end of 2013 compared to $352.1m at the end of 2012 showing a growth of 43%. The Board of Directors has recommended distributing cash dividends of 30% for the financial year ended December 2013 and one free share for each fifteen shares.
The bank has shown consistent solid growth over the last three years with profits growing from $305.9m in 2011 to $352.1m in 2012 to $501.9m in 2013. Dividends payouts have also increased from 25% in 2011 to 30% in 2012 to 37% in 2013.
Loans grew by 3% from $22.5bn in 2012 to $23.1bn in 2013 and customer deposits grew by $1.5bn from $32.9bn in 2012 to $34.4bn in 2013, a growth of 5%. Liquidity remains a key pillar of strength for Arab Bank with a loan to deposit ratio of 67.1% and the capital adequacy ratio is maintained at a solid 15.15%.
Mr. Sabih Masri, Chairman of Arab Bank, commented, “The solid growth reflects the bank’s prudent policies and strategic initiatives and the confidence the bank’s customers have in Arab Bank.”
Mr. Nemeh Sabbagh, CEO of Arab Bank, explained, “The bank was able to achieve several key strategic objectives in 2013 despite the challenges that emerged during the year. The bank has grown its net profit not only by increasing operating revenues but also by controlling operating expenses. Mr. Sabbagh added that the bank has continued to improve the quality of the credit portfolio with the provisions coverage ratio for non-performing loans in excess of 100%, excluding the value of collaterals held.”
Mr. Sabih Masri concluded by stating that he is “Confident that the bank will continue to show strong performance notwithstanding the challenging regional environment.”
The bank’s results are subject to Central Bank of Jordan final approval.
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