Arab Bank Group posts $436m in profit in H1

AMMAN — Arab Bank Group said its net income after tax for the first half of 2018 was $436 million compared to $415 million in prior period, recording a growth of 5 per cent, according to an Arab Bank statement. 

The group’s net income before tax grew by 6.4 per cent to reach $582 million with net operating income reaching $668.5 million and recording a solid double digit growth of 13 per cent. 

Sabih Masri, chairman of the group’s board of directors described the group’s performance as “solid”. He said this solid performance confirms the group’s success in dealing with the challenging operating environment.

Nemeh Sabbagh, chief executive officer, said the strong underlying performance of the Arab Bank Group is reflected in the growth of the net operating income, achieved during the first half of the year. 

This has come as a result of core banking income generated from interest and fees, coupled with effective cost management, he said in the statement. 

Net operating income grew by 13 per cent and net interest income went up by 12 per cent as a result of yield improvements and loan growth. 

Loans grew by 3 per cent to reach $25.5 billion while customer deposits reached $33 billion, according to the statement. 

Sabbagh said the Arab Bank Group enjoys strong liquidity and robust capitalisation. 

The group’s loan-to-deposit ratio stood at 71.6 per cent, while its capital adequacy ratio calculated in accordance with Basel III regulations was 15.4 per cent. 

He added that the asset quality of the group remains high, with credit provisions held against non-performing loans exceeding 100 per cent.