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Arab Bank Group reports Q1 net profit of $128.3m

By JT - May 02,2021 - Last updated at May 02,2021

Arab Bank Headquarters (Photo courtesy of the Arab Bank)

AMMAN — Arab Bank Group has consolidated the financial statements of Oman Arab Bank under Group accounts in the first quarter of 2021, according to a bank statement.

Oman Arab Bank has recently finalised the acquisition of Al Izz Islamic Bank, a full-fledged Islamic bank.

The step strengthens the bank’s presence in the Sultanate of Oman and it is in line with Arab Bank’s strategy to reinforce its business in the Gulf region, according to the statement.

The consolidation of Oman Arab Bank under the Group accounts has materially increased the size of Group balance sheet during this period, with total assets increasing by $8.1 billion and loans and deposits each increasing by $7.1 billion.

Arab Bank Group reported net income after tax of $128.3 million compared to $147.6 million for the same period last year, recording a drop of 13 per cent. Customer deposits grew by 30 per cent to reach $45.8 billion compared to $35.2 billion, while loans grew by 28 per cent to reach $33.5 billion compared to $ 26.2 billion.

Sabih Masri, chairman of the Board of Directors said the results of Arab Bank reflect its resilient performance in this challenging economic environment, compared to the pre-covid normal operating environment which prevailed in the first quarter of the last year.

Nemeh Sabbagh, chief executive officer, commented that while operating revenue continues to be impacted by low interest rates and a higher cost of risk, the bank’s performance demonstrates its robust fundamentals, its strong liquidity and capital base with equity of $10 billion, capital adequacy of 16.4 per cent, and a loan to deposit ratio of 73.1 per cent.

In the statement, Masri concluded by expressing optimism in future economic prospects, noting that the high pace of vaccination programmes witnessed by countries around the world will hopefully lead to the gradual recovery of regional and global economies.

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