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Arab Bank Group reported net income after tax for the first quarter of 2020 of $147.6 million as compared to $231.8 million for the prior period, recording a decrease of 36%.

Total loans amounted to $26.2 billion as of March 31, 2020 compared to $25.8 billion for the same period in the previous year, with a growth rate of 2%, while customer deposits grew by 5% to reach $35.2 billion compared to $ 33.7 billion for the same period in the previous year. The Group maintained its strong capital base with equity of $9.2 billion and a capital adequacy ratio of 16.5%.

Mr. Sabih Masri, Chairman of the Board of Directors remarked that the performance of Arab Bank confirms the success of the diversified business model of the Group regionally and globally. He also pointed out that the next phase will be challenging for the global and regional economies and will witness a slowdown in growth and difficulties for various sectors as a result of the outbreak of the Coronavirus pandemic. Mr. Masri added that he has great confidence in the Bank’s ability to deal with the challenges that lay ahead and noted that the Bank has in previous years demonstrated its effectiveness in operating in challenging economic environments.

Mr. Nemeh Sabbagh, Chief Executive Officer, commented that the Group net operating income dropped by only 2%, but the Bank opted to build more provisions during the first quarter of 2020 as a precautionary measure against the financial implications of COVID-19, and this resulted in the decrease in the reported net income after tax.

Mr. Sabbagh added that Arab Bank Group enjoys high liquidity and strong and robust capitalization. The Group’s loan-to-deposit ratio stood at 74.4% while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.5%, and credit provisions held against non-performing loans continue to exceed 100%. Commenting on the negative economic repercussions resulting from the outbreak of COVID-19, Mr. Sabbagh stated that the global banking sector will experience challenges as a result of the economic slowdown, the higher cost of risk and lower interest rates.

Mr. Masri concluded by remarking that Arab Bank was careful to take the necessary measures to protect the wellbeing of its employees and customers. He further added that Arab Bank has donated JD 15 million as part of its social responsibility in support of Jordan’s national efforts to combat the COVID-19 crisis and mitigate its health, economic and social repercussions on the Kingdom.

May 14, 2020
Arab Bank Group reports first quarter 2020 net profit of $147.6 million

Arab Bank held its Ordinary and Extraordinary General Assembly meetings on April 28th, 2020 online, becoming the first public shareholding company in the Kingdom to adopt a digital method of conducting general assembly meetings. The move comes in compliance with Defense Law (13) of 1992, Defense Order (5) of 2020 as well as the procedures issued by H.E. the Minister of Industry – Trade & Supply on April 9th, 2020 in line the with the defense orders listed above.

The meetings were held online amidst the preventative measured taken by the government to combat COVID-19, including prohibiting gatherings and public meetings that may result in spreading the virus, in order to protect citizens’ health and safety. To this effect, the Companies Control Department prepared a special procedure and instructions to regulate the organization of meetings of general assemblies, boards of directors and executives assemblies of public shareholding companies, private shareholding companies and limited liability companies in a manner that serves the national economy and enables such parties to hold their meetings during the Defense Law period.

In accordance with the government procedures stipulated in this regard, Arab Bank has enabled its shareholders to register for the meetings electronically in advance and to attend the meetings through an advanced digital platform in line with the latest international practices in this respect. The bank also allowed shareholders with less than 10% of shares to send any questions they might have in advance to be answered by the Board of Directors and executive management instantly and during the meeting. This is in addition to the platform’s electronic voting mechanism, which allowed shareholders to vote in advance or instantly on the agenda items of both the ordinary and extraordinary general assembly meetings.  

Commenting on the online General Assembly, Mr. Sabih Masri, Chairman of the Board of Directors, stated: “Holding the General Assembly meeting is an annual necessity and requirement for the bank’s operations spanning five continents, thus despite the exceptional circumstances that the Kingdom and the world are facing, we ensured business continuity through deploying the latest digital solutions and practices.”

Mr. Masri added: “The Royal directives focusing on the economy’s protection and sustainability as well as the flexible procedures and instructions issued by the Ministry of Industry – Trade & Supply and the Companies Control Department, had the greatest impact on the success of this pioneering experience, which is considered an advanced step towards the transition to the digitized economy.”

For his part, Dr. Wael Armouti, the Companies’ General Controller, said: “We are pleased to see the success of Arab Bank’s experience in holding its general assembly meetings online. This initiative comes as a result of the Royal directives and the government’s vision and ongoing efforts to take decisions and set measures to provide advanced practical solutions and alternatives to enable companies continue their operations amidst the unprecedented challenges posed by the COVID-19 pandemic.” He added: “This initiative embodies the active partnership between the public and private sectors, where advanced digital solutions are deployed to hold general assembly meetings in a manner convenient to both shareholders and companies thus expanding the participation base of such meetings. In the coming period, we look forward to reinforcing the adoption of this approach across various companies operating in the Kingdom.”

It is worth mentioning that Arab Bank’s general assembly meeting had a shareholder participation rate of 78.13% of the Bank’s capital.

Apr 29, 2020
For the first time in Jordan Arab Bank Holds its General Assembly Meeting Online

Arab Bank held its ordinary and extraordinary general assembly meeting online on April 28th, 2020, in compliance with Defense Law (13) of 1992, Defense Order (5) of 2020, that was published officially on March 31st, 2020 and the procedures issued by H.E. the Minister of Industry – Trade & Supply on April 9th, 2020 in line with the defense orders listed above.

The meeting was headed by Mr. Sabih Masri, Arab Bank’s Chairman in the presence of the board  of directors,  the Chief Executive Officer and shareholders (in attendance and by proxy), which make up 78.13% of the bank’s capital. Dr. Wael Armouti, the Companies’ Controller had also attended the meeting.

During the meeting, all articles on the agenda of both the ordinary and extraordinary general assembly meetings were endorsed.

Mr. Sabih Masri, Chairman of Arab Bank’s Board of Directors, said: “Arab Bank’s general assembly meeting is held this year amid the unprecedented circumstances that the Kingdom and the entire world are facing in light of the COVID-19 pandemic. Efforts are being exerted across various levels to deal with this global crisis and to alleviate its health, economic and social repercussions.”

Commenting on Arab Bank’s performance, Mr. Masri stated that Arab Bank Group achieved a solid performance during 2019 despite the challenging circumstances in the region. The Group reported net income after tax of $846.5 million as compared to $820.5 million in 2018, recording a growth of 3.2%. Net income before tax grew to reach $ 1.15 billion as compared to $ 1.12 billion in 2018.

Revenues grew by 4.6% to reach $ 2.2 billion, and these have been generated broadly from both the local and international network, with the latter comprising close to 70% of total revenues. Net operating income increased to $ 1.3 billion, driven by the growth in interest and commission of the bank’s major operations and total expenses recorded a decrease of 3% from 2018.

Credit facilities grew by 1.2 % to reach $ 26.1 billion compared to $ 25.8 billion as of  December 31st, 2018, while customer deposits increased by 6% to reach $36.2 billion. The Group also managed to further grow its equity by 5% during the year to reach over $ 9 billion despite the exceptional distribution of 45% cash dividend for the year 2018, following the dismissal of the legal case. Group equity grew with a return on equity of 9.3%.

Arab Bank’s solid results were driven by sustainable growth in the underlying business and by well controlled expenses. The bank maintains a well funded balance sheet, strong liquidity and robust capital position and enjoys strong, prudent and healthy fundamental financial metrics. The Group’s loan-to-deposit ratio stood at 72.1 % while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.2 % in December 2019. Asset quality of the Group remains high and credit provisions held against non-performing loans continue to be above 100%.

Mr. Masri stated that the bank’s solid performance demonstrates its success in dealing with the challenging circumstances through its prudent operating policies, broad network across the region and well- diversified sources of income. Mr. Masri further stated that the bank is currently evaluating the financial and economic implications of COVID-19 crisis in order to combat and contain its repercussions.

It is worth mentioning that the distribution of dividends for the 2019 fiscal year was postponed in accordance with the circular no. 1/1/4693 issued on April 9th, 2020 by H.E. the Governor of the Central Bank of Jordan to all banks operating in the Kingdom. 

Arab Bank was named “Best Bank in the Middle East for 2020” by Global Finance, New York for the fifth consecutive year.  The Bank was also named “The Middle East’s Best Bank 2019” by Euromoney – London.

Apr 28, 2020
Arab Bank Holds its General Assembly Meeting Online

A group of Arab Bank board members donated a total of JOD 150,000 to “Himmat Watan” fund in support of Jordan’s national efforts to combat the COVID-19 crisis and alleviate its health, economic and social repercussions on the Kingdom.

The board members praised the relentless national efforts, led by His Majesty King Abdullah II, in addressing the challenges resulted from this global pandemic and cushioning its implications in order to preserve the health and safety of citizens and protect the country’s resources and achievements.

Apr 21, 2020
Arab Bank Board Members Donate JOD 150,000 To "Himmat Watan" Fund

Arab Bank’s employees donated JOD 1.25 million to “Himmat Watan” Coronavirus relief fund, in support of Jordan’s national efforts, led by His Majesty King Abdullah II, to combat the COVID-19 crisis and alleviate its economic and social repercussions on the Kingdom.

This donation reflects Arab Bank employees’ sense of responsibly and responsiveness. It embodies their spirit of solidarity and good citizenship as well as their sincere eagerness to fulfill the nation's call under various circumstances and challenges. The contribution comes to express the deep appreciation of Arab Bank’s employees towards the relentless efforts exerted by various government bodies to fight the Coronavirus and contain its ramifications, led by the Ministry of Health, the Jordanian Armed Forces (Arab Army), the Royal Medical Services and the security services.

The donation included JOD 1 million from Arab Bank’s employees across the Kingdom including the employees of Al Arabi Investment Group “AB Invest”, Arab National Leasing Company (Arab Bank’s subsidiaries) as well as Abdul Hamid Shoman Foundation, Arab Bank’s Cultural and Social Responsibility arm. It also included a JOD 150,000 contribution from Arab Bank’s Chief Executive Officer, Mr. Nemeh Sabbagh, and JOD 100,000 from Arab Bank’s Deputy Chief Executive Officer, Ms. Randa Sadik

It is worth mentioning that Arab Bank was at the forefront of supporters of Jordan’s national efforts to combat the COVID-19 crisis and mitigate its economic and social repercussions. Arab Bank had donated earlier a total of JOD 15 million to “Himmat Watan” Fund and the Ministry of Health as part of its national duty and social responsibility towards protecting the Kingdom and preserve its resources.

Apr 19, 2020
Arab Bank Employees Donate Jod 1.25 Million To ‘Himmat Watan’ Fund

Arab Bank Group raised its donation to JOD 15 million in support of the Kingdom's efforts to combat COVID—19 and alleviate its repercussions. Arab Bank had earlier donated JOD 3 million to the Ministry of Health. The additional donation amount is directed towards “Himmat Watan”, Coronavirus national relief Fund.

Arab Bank raised the value of its donation as part of its patriotic duty and social responsibility and in support of Jordan’s national efforts to combat the COVID-19 crisis and mitigate its health, economic and social repercussions on the Kingdom.

Arab Bank expressed its sincere appreciation of all efforts exerted by the Kingdom, under the leadership of His Majesty King Abdullah II, and the participation of the different government bodies at all levels to address these exceptional circumstances. The bank also stressed the importance of collaboration, responsible citizenship and active community participation during these challenging times in order to ensure the health and safety of citizens and to protect the nation and preserve its resources and achievements.

As part of its national duty and social responsibility, and in light of the exceptional circumstances the Kingdom is facing in its fight against COVID-19, Arab Bank Group donated JOD 3 million to support Jordan’s national efforts to combat the spread of this pandemic. The donation will support in providing the necessary health care for the infected as well as the tests needed for suspected cases in order to mitigate the effects of this pandemic on the Kingdom.  

Arab Bank expressed its deep appreciation for the relentless efforts made by various government bodies at different levels across the Kingdom to address these exceptional circumstances. The bank also stressed the importance of collaboration, responsible citizenship and active community participation in order to ensure the safety and health of citizens and to protect the nation and preserve its resources and achievements during such challenging circumstances. 

Arab Bank has launched a special offer on its payment app “Arabi MobiCash” as 28 new merchants at City Mall recently joined a list of over 150 restaurants, shops and gas stations that accept payments through the app. The offer provides customers who use the app for their payments with the opportunity to win gift vouchers and guaranteed cashback rewards as well as doubled bonus points within “Arabi Points” program as part of the bank’s series of promotional offers and campaigns. 

The offer, which will run until February 17th, 2020, allows current and new customers to enter a draw to win one out of ten JOD 200 gift vouchers from City Mall when using “Arabi MobiCash” app to conduct payments at select merchants. The offer also allows customers to benefit from a guaranteed JOD 10 cashback deposited in their accounts every month when using the app to pay for purchases exceeding JOD 50 in total throughout the month at three different points of sale that accept payments through “Arabi MobiCash”. They will also benefit from doubled reward points within “Arabi Points” program, noting that Arab Bank employees will be available throughout the campaign period at the bank’s “Arabi MobiCash” booth – City Mall to assist customers with all their inquiries and to help those who are interested in Arab Bank services to open new accounts digitally. 

Commenting on this offer, Head of Consumer Banking at Arab Bank – Jordan, Mr. Yacoub Matouk stated: “We continue to introduce value-added promotions and offers aiming to reward our customers for using ‘Arabi MobiCash’, which provides them with seamless and flexible payment experience.” He added: “Arab Bank also offers individuals who wish to benefit from Arab Bank’s comprehensive services and exclusive offers the opportunity to open an Arab Bank account digitally in three simple and easy steps, using their smart phones and tablets via “Arabi Mobile” app.”

It is worth mentioning that “Arabi MobiCash” app - the first of its kind in the Kingdom - offers a host of comprehensive features including the ability to receive invoices using the QR Code or by entering the invoice number via the smartphone in order to pay it through the app. The app also offers the advantage of conducting payments without the need to be physically present at the merchant’s site, in addition to transferring bills easily and securely to other “Arabi MobiCash” users to pay it. The app also provides detailed reports and dashboards covering all transactions besides many other features.

“Arabi MobiCash” app is available through Apple Store and Google Play, providing users with the convenience to set up their account and password through the application directly, instead of contacting the bank.

 
Feb 13, 2020
Arab Bank Launches Special “Arabi MobiCash” Offer at City Mall
Arab Bank Group closed 2019 with solid results reporting net income after tax of $846.5 million as compared to $820.5 million in 2018, recording a growth of 3.2%. Net income before tax grew to reach $ 1.15 billion as compared to $ 1.12 billion in 2018, while Group equity grew to reach $9.102 billion with a return on equity of 9.3%.

In view of the solid results, the Board of Directors has recommended to the shareholders the distribution of 30% cash dividends for the financial year 2019, making a total dividend payout of over $ 270 million.

The Group’s net operating income grew by 5% driven by growth in interest and fee income. Credit facilities grew by 1.2 % to reach $ 26.1 billon while customer deposits increased by 6%, or by almost $ 2 billion, to reach $36.2 billion. Revenues grew by 4.6% to reach $ 2.23 billion, and these have been generated broadly from both the local and international network, with the latter comprising close to 70% of total revenues. Total expenses recorded a decrease of 3% from 2018.

The Group managed to further grow its equity by 5% during the year to reach over $ 9 billion despite the exceptional distribution of 45% cash dividend for the year 2018, following the dismissal of the legal case.

Mr. Sabih Masri, Chairman of the Board of Directors, stated that this strong performance confirms the success of the Group in dealing with the challenging and changing operating environment and reflects the Group’s prudent operating policies. Mr. Masri stated that the broad network of the Group across countries in the region and globally provides the benefit of diversified sources of income, and added that the Group has demonstrated that it has the right strategy and footprint to deliver value for its shareholders.

Mr. Nemeh Sabbagh, Chief Executive Officer, stated that Arab Bank continues to deliver consistent and sustained growth, while investing for the future through the prudent and efficient deployment of capital, and by building a resilient balance sheet through its disciplined and proactive approach to risk management. 

Mr. Sabbagh further added that while the operating environment for most regional economies remains challenging, Arab Bank’s strength, its broad and loyal customer base, diversified business model and wide geographical diversification, and its ability to leverage its unique brand and global network ensured that the performance of the Group remained strong.  Mr. Sabbagh added that the performance in 2019 reflects the continued success of the bank’s business model.

Mr. Nemeh Sabbagh also stated that the solid results of Arab Bank Group for 2019 were driven by sustainable growth in the underlying business and by well controlled expenses. He added that Arab Bank Group maintains a well funded balance sheet, strong liquidity and robust capital position. He further added that the Group enjoys strong, prudent and healthy fundamental financial metrics. The Group’s loan-to-deposit ratio stood at 72.1 % while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.2 %. Asset quality of the Group remains high and credit provisions held against non-performing loans continue to be above 100%.

Mr. Masri concluded by remarking that the encouraging results will continue to support the strong financial performance of the Group and its position in its markets and that the bank will maintain its strong financial position and will aim to deliver to its shareholders healthy and sustainable dividends.

Arab Bank was named “The Middle East’s Best Bank 2019” by Euromoney - London and “Best Bank in the Middle East for 2019” by Global Finance, New York for the fourth year consecutively.

The 2019 financial statements are subject to the approval of the Central Bank of Jordan.
Feb 2, 2020
Arab Bank Group reports net profits of $846.5 million for 2019 30% cash dividends

Arab Bank has recently launched a special “Arabi MobiCash” offer for its “Shabab” program customers, providing them with an opportunity to receive guaranteed monthly cash rewards when conducting payments via “Arabi MobiCash” app. The offer comes as part of the bank’s continuous efforts to reward young customers by providing them with advanced payment services and value-added offers that meet their evolving needs and expectations. 

The offer, which will run until March 31st, 2020, allows young customers to benefit from a guaranteed JOD 10 deposited in their account every month when using “Arabi MobiCash” app to pay for purchases exceeding JOD 50 in total throughout the month at three different points of sale that accept payments through “Arabi MobiCash”. They will also benefit from doubled reward points within “Arabi Points” program. It is worth mentioning that individuals who are interested in opening accounts with “Shabab” program can do so electronically and in three simple steps, easily and securely,  using their smart phones and tablets via “Arabi Mobile” app.

Commenting on this offer, Head of Consumer Banking at Arab Bank – Jordan, Mr. Yacoub Matouk, stated: “Shabab program was specially designed to meet the evolving banking needs of youth, whether they are university students or employees.” Matouk added: “Shabab customers will now be able to benefit from “Arabi MobiCash” app to conduct payments easily and conveniently through their debit and credit cards through their smartphones. This is in addition to the financial reward offered now to them as an incentive to use the application.”

It is worth mentioning that the “Arabi MobiCash” app - the first of its kind in the Kingdom - offers a host of comprehensive features including the ability to receive invoices using the QR Code or by entering the invoice number via the smartphone in order to pay it through the app. The application also offers the advantage of conducting payments without the need to be physically present at the merchant’s site, in addition to transferring bills easily and securely to other “Arabi MobiCash” users. The app also provides detailed reports and dashboards covering all transactions besides many other features.

“Arabi MobiCash” app is available through Apple Store and Google Play, providing users with the convenience to set up their account and password through the application directly, and using a secret number, instead of contacting the bank.

 
Jan 27, 2020
Arab Bank Launches “Arabi MobiCash” Special Offer for Shabab Customers

As part of its social responsibility and ongoing efforts to support the education sector, Arab Bank has recently sponsored the “Job Shadowing” program implemented by INJAZ in cooperation with the Ministry of Education.

The educational program provided the opportunity for twenty students to visit and spend a full workday at six branches of Arab Bank with the aim to acquaint the students with a real life work place environment. The exercise focused on exploring the relationship between the academic (theoretical) knowledge acquired in school and the skills required in the working environment of the bank. 

Commenting on this initiative, Mr. Tareq Haj Hasan - Senior Vice President, Head of Branding at Arab Bank said: “Our continued cooperation with INJAZ dovetails with our corporate social responsibility program “Together”, through which we attach great importance to supporting the education sector given its vital role in achieving sustainable community development.” Haj Hasan added: “The program is an effective initiative towards strengthening and enriching the learning process through deploying interactive activities that build the skills and abilities of our students and expand their understanding in line with the latest developments, which in turn prepares them to deal with future opportunities and challenges.”

Mr. Muhannad Al Jarrah, Executive Director at INJAZ, stated that the “Job Shadowing” program implemented in cooperation with Arab Bank and the Ministry of Education aims at encouraging students to learn about the different career paths through field trips that focus on building their practical knowledge and provide them with an insightful orientation in this respect. 

He added that INJAZ’s cooperation with Arab Bank through this program covered different aspects, mainly familiarizing students with the real workplace environment in general and banks in specific. The students experienced the work environment firsthand through their direct interaction with Arab Bank volunteering staff, who took the students through the latest developments in the industry and encouraged them to set and pursue their own career goals and plans. 

It is worth mentioning that Arab Bank has taken an active role in the community by adopting a comprehensive strategic approach and collaborating with several NGOs to achieve economic, social and environmental sustainable development. “Together”, Arab Bank’s corporate social responsibility program, is a multi-faceted program that works on improving and developing different aspects of the community. Through a variety of initiatives and activities, the program aims to serve the community in the areas of health, poverty alleviation, environmental protection, education and orphan support.

 
Jan 19, 2020
Arab Bank Sponsors Job Shadowing Program by INJAZ