Arab Bank Group reports profits of $436 million for first half of 2018
Dubai, UAE, July 28, 2018: Arab Bank Group reported net income after tax for the six months period ended 30 June 2018 of $ 436 million compared to $415 million in prior period, recording a growth of 5%. The Group’s net income before tax grew by 6.4% to reach $582 million with net operating income reaching $ 668.5 million and recording a solid double digit growth of 13%.
Mr. Sabih Masri, Chairman of the Board of Directors stated that the solid performance of Arab Bank Group confirms the success of the Group in dealing with the challenging operating environment.
Mr. Nemeh Sabbagh, Chief Executive Officer, stated that the strong underlying performance of Arab Bank Group is reflected in the growth in net operating income achieved during the first half of the year and which was driven by core banking income generated from interest and fees coupled with effective cost management.
Net operating income grew by 13% and net interest income went up by 12% as a result of yield improvements and loan growth. Loans grew by 3% to reach $25.5 billion while customer deposits reached $33 billion.
Mr. Sabbagh remarked that Arab Bank Group enjoys strong liquidity and robust capitalization. The Group’s loan-to-deposit ratio stood at 71.6%, while the capital adequacy ratio calculated in accordance with Basel III regulations is 15.4%. He added that the asset quality of the Group remains high, with credit provisions held against non-performing loans exceeding 100%.
Mr. Masri concluded by remarking that the broad diversification of the business model and geographic profile of Arab Bank Group will continue to support the strong financial performance of the Group and its position in its markets.
Arab Bank was named “Bank of the Year in the Middle East for 2017” by The Banker – Financial Times, London and “Best Bank in the Middle East for 2018” by Global Finance, New York.
The 30 June 2018 financial statements are subject to the approval of the Central Bank of Jordan.
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