AMMAN — Arab Bank Group announced in a press statement on Saturday that it weathered the challenging environment in the region with a record growth in 2013.
“Net operating income before provisions and taxes exceeded the $1 billion mark,” the press release said, pointing out that the group’s net profit after tax surged by 43 per cent to $501.9 million at the end of 2013 compared with $352.1 million at the end of 2012.
According to the press release, the board of directors has recommended distributing cash dividends at a rate of 30 per cent for the financial year ended in December 2013 and one free share for each fifteen shares.
“The bank has shown consistent solid growth over the last three years with profits growing from $305.9 million in 2011 to $352.1 million in 2012 and to $501.9 millioni n 2013,” the bank indicated. “Dividends payouts have also increased from 25 per cent in 2011 to 30 per cent in 2012 to 37 per cent in 2013.”
It pointed out that loans increased by 3 per cent from $22.5 billion in 2012 to $23.1 billion in 2013 and that customer deposits went up by 5 per cent to $1.5 billion from $32.9 billion in 2012 to $34.4 billion at the end of last year.
Noting that liquidity remains a key pillar of strength for Arab Bank, the loan to deposit ratio stood at 67.1 per cent and capital adequacy ratio at a solid 15.15 per cent.
Sabih Masri, chairman of Arab Bank, said in the press release that the solid growth reflects the bank’s prudent policies and strategic initiatives besides the confidence of customers in Arab Bank.
Chief Executive Officer Nemeh Sabbagh attributed the bank’s success in achieving several key strategic objectives in 2013, despite the challenges that emerged during the year, to higher operating revenues and lower spending.
Besides controlling operating expenses, Sabbagh added that the bank has continued to improve the quality of the credit portfolio with the provisions coverage ratio for non-performing loans in excess of 100 per cent, excluding the value of collaterals held.
Masri expressed confidence that the bank will continue to show strong performance notwithstanding the challenging regional environment.”
The bank’s results are subject to the final approval of the Central Bank of Jordan.
Separately, the bank’s share price ended last week’s trading at JD10.200, after recent jumps from below JD7.
