Arab Bank Group Profit Rises 7.5% in the First Half to Reach USD 387 Million
28 Jul, 2013
Arab Bank Group posted an increase of 7.5% in its net profit in the first half of 2013 to reach USD 387 million compared to USD 360 million for the same period in 2012. Net income before tax grew to USD 511 million.
Loans and advances grew by 2% to reach USD 22.9 billion as of 30 June 2013 compared with USD 22.5 billion on 31 December 2012. Customer deposits closed at USD 32.7 billion at the end of the first half.
It is worth noting that the growth rate of total loans and advances and of customer deposits would have been higher has the exchange rate in several key currencies not depreciated against the USD during this period. This reflects the underlying strength and resilience of the bank’s financial position and customer confidence.
Commenting on the financial results, Mr. Sabih Masri, Chairman of Arab Bank, stated: “Growth in net profit in the first half reflects the strong performance of Arab Bank and its ability to deal with the challenging environment in the region and to grow in its core markets including the GCC, where the bank is capitalizing on strong growth opportunities.”
Mr. Nemeh Sabbagh, Arab Bank’s Chief Executive Officer, commented: "Our strategy is to deliver sustainable shareholder value through maintaining robust liquidity and growing the bank’s core banking income. The loan-to-deposit ratio stood at 63.6% and the capital adequacy ratio remains very strong at 14.83%, well above the 12% minimum required by the Central Bank of Jordan. Provisions for loans and advances in the first half of the year were lower compared to the same period last year. The provisions coverage ratio was 117% at the end of June 2013.
He continued, “The bank is committed to playing a pivotal role in the sustainable development of the markets in which it operates and we look forward to continued positive performance for the remainder of the year.”
Mr. Sabih Masri expressed his satisfaction with the results and his confidence in the continued strong performance of the bank going forward.”
The bank’s results are subject to Central Bank of Jordan final approval.