Arab Bank Group reports 25% growth in profits, reaching $503m in H1 2024

AMMAN — Arab Bank Group reported results for the first half of 2024, with 25 per cent increase in net income after tax reaching $503 million compared with $401 million for the same period last year. The Group maintained its strong capital base with a total equity of $11.5 billion.

According to a statement to the Jordan Times, the bank's assets grew by 5 per cent reaching $68.7 billion and at constant currency, the Group’s loans grew by 8 per cent to reach $38.1 billion, and deposits grew by 6 per cent to reach $50.5 billion.

Chairman of the Board of Directors Sabih Masri said in the statement that the solid financial performance during the first six months underscores the successful execution of the bank’s prudent risk practices, diversified business model and focus on core banking activities. Masri also emphasised the Group’s ability to continue achieving robust performance which reinforces its leading position in the market.

Chief Executive Officer Randa Sadik said that the strong financial results reflect the bank’s robust assets base and strong capitalisation. 

Sadik also highlighted that the bank’s net operating profit grew by 11 per cent driven by core banking activities coupled with controlled operating expenses. 

The bank continues to implement its digital strategy, expanding the offering of innovative digital solutions across the bank’s various business segments, she added.

Sadik also noted that the bank’s balance sheet strength, solid capitalisation, and high liquidity levels have well-positioned the bank for sustainable growth. 

The Group’s loan-to-deposit ratio stood at 75.4 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent, she noted, adding that the Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.5 per cent.

Arab Bank has recently received the “Best Bank in the Middle East 2024” award from the New York-based international publication “Global Finance”, for the ninth consecutive year.