Arab Bank Group reports net profits of $544.3m for 2022

AMMAN — Arab Bank Group achieved “solid results” for the period ending December 31, 2022, with net income after tax of $544.3 million as compared to $314.5 million in 2021. 

The Group’s performance was driven by robust growth in itscorebanking business across different markets, as net profit before provisions and tax increased by 23 per cent to reach $1.35 billion, according to an Arab Bank statement.

Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 5 per cent to reach $35.4 billion and $47.7 billion, respectively, despite the volatile operating environment.

In view of these results, the Board of Directors has recommended to the shareholders, the distribution of 25 per cent cash dividends for the financial year 2022.

Sabih Masri, Chairman of the Board of Directors, commented that Arab Bank was able to achieve several key strategic objectives in 2022 despite the challenges that emerged during the year. 

He also added that the results reflect the bank’s “unique footprint” as well as its diversified franchise and rooted presence in several markets. 

Masri stated that the bank remains committed to its strategic sustainable growth direction centred on serving customers’ evolving needs, and continuing to invest in innovation and digital transformation.

Randa Sadik, chief executive officer, stated that Arab Bank continued to deliver sustainable growth rates during 2022 despite the economic challenges stemming from high inflation, increased interest rates and the devaluation in exchange rates of severalcurrencies against the US dollar. 

The bank’s net operating profit grew by 23 per cent driven by the growth in revenues from its core banking business, its diversified sources of income, with focus on non-interest income, as well as controlling operating expenses in line with the bank's prudent strategy.

Sadik added that the Group’s liquidity and asset quality remains solid where loan-to-deposit ratio stood at 74.2 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.6 per cent.

Sadik also highlighted that as part of Arab Bank’s commitment towards Sustainability and its Environmental, Social and Governance (ESG) priorities, the bank has launched its inaugural Sustainable Finance Framework, in line with international principles, guidelines and best practices. 

Arab Bank is the first bank in Jordan to adopt such a Framework and the bank has obtained a Second Party Opinion from S&P Global Ratings, which has affirmed the Framework’s alignment with the related international principles, the statement said.

With regard to the bank's digital transformation efforts, Sadik stated that the bank continues to implement its ambitious strategy on this front, noting that during the year the bank launched several digital banking services and solutions across various markets to meet the evolving needs and expectations of the different customer segments, including youth, in line with the latest trends and developments.

Arab Bank was named “Best Bank in the Middle East 2022” for the seventh consecutive year by New York-based international publication “Global Finance”. The bank also received several awards in recognition of its corporate and consumer digital banking services in Jordan and across the MENA region.

The 2022 financial statements are subject to the approval of the Central Bank of Jordan.