Arab Bank Group profits grow by 26% for nine months 2021

AMMAN — Arab Bank Group reported net income after tax of $271.7 million as compared to $215.2 million for the same period last year, recording a growth of 26 per cent. 

Arab Bank consolidated the financial statements of Oman Arab Bank under its group accounts increasing total assets by $8.4 billion to reach $63.7 billion compared to $52.5 billion for the same period last year, according to a statement from the bank.

Customer deposits grew by 24 per cent to reach $46.6 billion, while loans grew by 28 per cent, to reach $34.1 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7 billion and $7.5 billion, respectively.

Sabih Masri, chairman of the board of directors, remarked that the solid results demonstrate the bank’s strategic directive to maintain sustainable growth despite the challenging environment and highlighted that the bank continued focus on its digital transformation strategy.

Nemeh Sabbagh, chief executive officer, commented that the bank’s robust performance confirms its effectiveness in operating in a challenging economic environment with net operating income increasing by 6 per cent to reach $856.9 million. 

He added that the group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.1per cent, equity of $10.4 billion, and a capital adequacy ratio of 16.8 per cent. The group continues to hold credit provisions against non-performing loans in excess of 100 per cent.

Sabbagh also noted that the bank has launched Reflect, the first Neobank in Jordan, which provides a branchless experience to millennials and facilitates their daily lifestyle activities from one banking app. 

Masri highlighted Arab Bank's capacity to successfully overcome challenges and achieve strong results and stressed Arab Bank's commitment to its customers and shareholders.