Arab Bank Group profits grow by 20% in H1

CEO announces retirement at end of year

(Photo: Jordan News)

AMMAN — Arab Bank Group reported net income after tax of $182.4 million, compared to $152.1 million for the same period last year, recording a growth of 20 percent, the group announced in a press statement on Saturday.اضافة اعلان

During the first quarter of 2021, Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts, increasing total assets by $8.2 billion, to reach $63 billion, compared to $51.6 billion for the same period last year, according to the statement.

Oman Arab Bank has also recently finalized the acquisition of Al-Izz Islamic Bank, a full-fledged Islamic bank, strengthening its presence in the Sultanate of Oman.

Customer deposits grew by 28 percent to reach $46 billion, while loans grew by 27 percent, to reach $33.8 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7 billion and $7.2 billion, respectively, the bank reported.

Sabih Masri, chairman of the board of directors was quoted as saying in the statement that that “the solid results demonstrate the strength of the bank’s diversified business model and the bank’s resilient performance in this challenging economic environment.”

For his part, the group’s CEO Nemeh Sabbagh said that despite the negative economic consequences of the pandemic, “the bank's robust performance confirms its effectiveness in operating in a challenging economic environment as net operating income increased by 6 percent to reach $579.8 million.”

He added that the group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.5 percent, equity of $10.3 billion, and a capital adequacy ratio of 16.7 percent. Sabbagh also noted that the group “continues to hold credit provisions against non-performing loans in excess of 100 percent.”

Masri expressed his confidence in the group’s ability to maintain its solid financial indicators. He also noted that the group “will remain committed to sustainable community development, and to fostering the interests of its customers, shareholders and communities.”

Meanwhile, the board has approved during its meeting on Thursday the appointment of Mahmoud Malhas as board member and he was elected as deputy chairman of the board.

During the same meeting, Sabbagh also informed the board of his desire to retire at the end of the year, after 12 years as the bank’s CEO.

Sabbagh recommended to the board the appointment of Randa Sadik, who has been holding the position of deputy CEO since 2010, as his successor. The recommendation was welcomed by the board of directors, according to the statement.

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