Arab Bank Group Reports 61 percent Growth in Net Profits

Arab Bank

Arab Bank Group closed 2021 reporting net income after tax of USD314.5 million as compared to USD195.3 million in 2020, recording a growth of 61 percent. Additionally, the Group equity grew to reach USD10.3 billion.

The Board of Directors has recommended to the shareholders the distribution of 20 percent cash dividends for the financial year 2021.

Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts increasing total assets by USD8.4 billion to reach USD63.8 billion compared to USD54.4 billion for the same period last year.

Customer deposits grew by 22 percent to reach USD47.1 billion, while loans grew by 30 percent, to reach USD34.6 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by USD7.3 billion and USD7.5 billion, respectively.

Chairman of the Board of Directors, Sabih Masri, stated that the underlying performance reflects its strategic directive in dealing with the challenging and changing operating environment and its prudent operating policies of maintaining strong liquidity and healthy capital positions.

Chief Executive Officer, Nemeh Sabbagh, commented that the year 2021 showed a partial recovery of the economic environment which the bank benefited from and recorded a growth in net interest and commission income by 15 percent with net operating income increasing by 8 percent to reach USD1,108 Million. He added that the Group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.4 percent and a capital adequacy ratio of 16.5 percent. The Group continues to hold credit provisions against non-performing loans in excess of 100 percent.

Sabbagh also noted the bank’s ambitious vision towards embracing digital transformation as an integral part of its strategy. The bank launched in 2021 Reflect, the first Neobank in Jordan, which provides a branchless experience to millennials and facilitates their daily lifestyle activities from one banking app.

Masri concluded by referring to Arab Bank’s ongoing commitment towards integrating sustainability into its operations in a strategic manner which dovetails with the bank’s efforts to support sustainable community development.

Arab Bank was named “Best Bank in the Middle East 2021” for the sixth consecutive year by New York-based Global Finance magazine.

The 2021 financial statements are subject to the approval of the Central Bank of Jordan.

Source: Arab Bank

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