Arab Bank Group H1 net profit grows by 20%

AMMAN — Arab Bank Group net income after tax totalled $182.4 million at the end of the first half of 2021 compared to $152.1 million for the same period last year, recording a growth of 20 per cent, according to a bank statement received by The Jordan Times on Sunday. 

During the first quarter of 2021, Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts increasing total assets by $8.2 billion to reach $63 billion compared to $51.6 billion for the same period last year. Oman Arab Bank has also recently finalised the acquisition of Al Izz Islamic Bank, a full-fledged Islamic bank, strengthening its presence in the Sultanate of Oman.

Customer deposits grew by 28 per cent to reach $46 billion, while loans grew by 27 per cent, to reach $33.8 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7 billion and $7.2 billion, respectively.

 In the statement, Sabih Masri, chairman of the Board of Directors said the results demonstrate the strength of the Bank’s diversified business model and the Bank’s resilient performance in this challenging economic environment.

Nemeh Sabbagh, chief executive officer (CEO), said despite the negative economic consequences of the pandemic, the Bank's robust performance confirms its effectiveness in operating in a challenging economic environment as net operating income increased by 6 per cent to reach $579.8 million. He added that the Group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.5 per cent. 

Moreover, Sabbagh said the Group continues to hold credit provisions against non-performing loans in excess of 100 per cent.

Arab Bank has recently issued its eleventh annual sustainability report, which provides a summary of the Bank's performance and achievements in the social, environmental and economic fields for the year 2020.

During the board meeting which took place on Thursday, the board approved the appointment of Mahmoud Malhas as board member and he was elected as Deputy Chairman of the Board.

Sabbagh, who has had a 47 year career in banking and finance and has been the CEO of Arab Bank for the past 12 years, informed the board of his desire to retire at the end of the year. 

He recommended the appointment of Randa Sadik as his successor. Sadik has been deputy CEO since 2010.