Arab Bank Group increases Q1 net profit by 5.4%

AMMAN — Arab Bank Group announced Saturday in a press statement that net profit after tax and provisions increased by 5.4 per cent during the first quarter (Q1) of 2014. 

According to the statement, net profit reached  $216.3 million at the end of last month compared to $205.1 million at the end of March 2013.

“Customer deposits rose 4 per cent to $34.3 billion compared to  $33 billion and total credit facilities grew by 2.5% to $23.1 billion from $22.6 billion,” the bank pointed out.

Arab Bank’s Chairman Sabih Masri said the financial performance during the first quarter reflected the progress the bank continues to make in implementing its strategy of diversifying income sources and concentrating  on operating revenues in all the countries in which it operates.

Chief Executive Officer Nemeh Sabbagh attributed this level of profitability to the bank’s success in dealing with local and regional developments.

“It shows that the bank’s prudent credit policies continue to preserve the overall quality of our credit portfolio, resulting in lower provisions for non-performing loans compared to the same period last year,” Sabbagh said.

He emphasised that the bank remains focused on its core operational activities as it raised net interest and commissions by 4 per cent and 8 per cent respectively compared to the same period last year. 

According to Sabbagh, the bank continues to maintain a high level of liquidity with its loan to deposit ratio at 61.1 per cent and its capital adequacy ratio standing at 14.6 per cent.

Masri concluded in the press statement by affirming that “Arab Bank will remain committed to providing banking solution at the highest standards throughout its extensive branch network across the Arab world and globally maintaining solid financial indicators and high quality of assets.”