Arab Bank Group reports net profit of $128.3 million in Q1

Arab Bank head office in Amman (Photo: Jordan News)
AMMAN — Arab Bank Group has consolidated the financial statements of Oman Arab Bank under the group’s accounts in the first quarter of 2021, the group announced in a statement on Saturday, noting that Oman Arab Bank has also recently finalized the acquisition of Al Izz Islamic Bank, a “full-fledged Islamic bank.”اضافة اعلان

“Accordingly the group has strengthened its presence in Oman, in line with Arab Bank’s strategy to reinforce its business in the Gulf region,” the statement said. 

The consolidation of Oman Arab Bank under the group’s accounts has effectively increased the size of Arab Bank Group’s balance sheet during this period, with total assets increasing by $8.1 Billion and loans and deposits each increasing by $7.1 Billion.

Arab Bank Group reported net income after tax of $128.3 million, compared to $147.6 million for the same period last year, recording a drop of 13 percent. Customer deposits grew by 30 percent to reach $45.8 billion, compared to $35.2 billion, while loans grew by 28 percent to reach $33.5 billion, compared $ 26.2 billion, according to the group.

Chairman of the Board of Directors Sabih Masri remarked that the results of Arab Bank reflect its “resilient performance in this challenging economic environment,” compared to the pre-COVID operating environment, which prevailed in the first quarter of the last year.

For his part, Chief Executive Officer Nemeh Sabbagh said that while operating revenue continues to be impacted by low interest rates and a higher cost of risk, the bank’s performance demonstrates its robust fundamentals, high liquidity, and strong capital base, with equity of $10 billion, capital adequacy of 16.4 percent, and a loan to deposit ratio of 73.1 percent. 

Masri expressed optimism in future economic prospects, noting that the high pace of vaccination programs witnessed by countries around the world will hopefully lead to the gradual recovery of regional and global economies.

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