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Arab Bank Group profits grow 59% to $401 million in H1 2023

By JT - Jul 29,2023 - Last updated at Jul 29,2023

(Photo courtesy of Arab Bank Group)

AMMAN — Arab Bank Group reported solid results for the first half of 2023. The Group’s strong performance was driven by robust growth in its core banking business across different markets, as net profit after tax increased by 59 per cent, reaching $401 million as compared to $252 million during the same period last year.

The Group maintained its strong capital base with a total equity of $10.6 billion. Loans grew to $36.1 billion and deposits reached $48.3 billion. Excluding the impact of the devaluation of several currencies against the US dollar, loans and deposits grew by 2 per cent and 5 per cent, respectively, according to a statement from Arab Bank Group made available to The Jordan Times.

Sabih Masri, Chairman of the Board of Directors, stated that the solid financial performance during the first six months of this year underscores the resilience of the bank’s diversified business model, which is based on prudent risk management practices and is focused on achievingsustainable growth. Masri emphasised the bank’s commitment towards the executionof its innovation and digital transformation strategy to deliver the best banking experience to clients.

Randa Sadik, Chief Executive Officer, stated that the strong financial results,despite the volatility in the operating environment, is a testament to the bank’s robust assets base and strong capitalisation. Sadik highlighted that the bank’s net operating income grew by 50per cent, driven by diversified core banking activities coupled with controlled operating expenses. Provisions held during the period reflect the bank’s prudent risk management strategy against the increased economic uncertainty witnessed globally and regionally.

Sadik added that the bank is well positioned for sustained earnings growth with the support of its solid financial position, strong capitalisation and high liquidity levels. The Group’s loan-to-deposit ratio stood at 74.7 per cent, and credit provisions held against non-performing loans continue to exceed 100 per cent. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.8 per cent.

In line with the bank’s commitment towards sustainability, Arab Bank recently released its 13th annual sustainability report featuring its achievements in 2022 on the environmental, social and governance (ESG) fronts.

Arab Bank was named the “Best Bank in the Middle East for 2023” by Global Finance magazine for the eighth consecutive year. The bank also received the “Best ESG Integration in Jordan” award from The Arab Federation of Capital Markets in collaboration with Global Economics Magazine.

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