Search DubaiPRNetwork.com

Home >> Banking & Investments

Arab Bank Group Reports First Quarter 2020 Net Profit of $147.6 Million

Arab Bank Group Reports First Quarter 2020 Net Profit of $147.6 Million

Thursday, May 14, 2020/ Editor -  

Share

Home >> Banking & Investments

Dubai, United Arab Emirates, May 14, 2020:   Arab Bank Group reported net income after tax for the first quarter of 2020 of $147.6 million as compared to $231.8 million for the prior period, recording a decrease of 36%.

Total loans amounted to $26.2 billion as of March 31, 2020 compared to $25.8 billion for the same period in the previous year, with a growth rate of 2%, while customer deposits grew by 5% to reach $35.2 billion compared to $ 33.7 billion for the same period in the previous year. The Group maintained its strong capital base with equity of $9.2 billion and a capital adequacy ratio of 16.5%.

Mr. Sabih Masri, Chairman of the Board of Directors remarked that the performance of Arab Bank confirms the success of the diversified business model of the Group regionally and globally. He also pointed out that the next phase will be challenging for the global and regional economies and will witness a slowdown in growth and difficulties for various sectors as a result of the outbreak of the Coronavirus pandemic. Mr. Masri added that he has great confidence in the Bank’s ability to deal with the challenges that lay ahead and noted that the Bank has in previous years demonstrated its effectiveness in operating in challenging economic environments.

Mr. Nemeh Sabbagh, Chief Executive Officer, commented that the Group net operating income dropped by only 2%, but the Bank opted to build more provisions during the first quarter of 2020 as a precautionary measure against the financial implications of COVID-19, and this resulted in the decrease in the reported net income after tax.

Mr. Sabbagh added that Arab Bank Group enjoys high liquidity and strong and robust capitalization. The Group’s loan-to-deposit ratio stood at 74.4% while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.5%, and credit provisions held against non-performing loans continue to exceed 100%. Commenting on the negative economic repercussions resulting from the outbreak of COVID-19, Mr. Sabbagh stated that the global banking sector will experience challenges as a result of the economic slowdown, the higher cost of risk and lower interest rates.

Mr. Masri concluded by remarking that Arab Bank was careful to take the necessary measures to protect the wellbeing of its employees and customers. He further added that Arab Bank has donated JD 15 million as part of its social responsibility in support of Jordan’s national efforts to combat the COVID-19 crisis and mitigate its health, economic and social repercussions on the Kingdom.

 


Previous in Banking & Investments

Next in Banking & Investments


Home >> Banking & Investments Section

Latest Press Release

Lincoln Aviator Presidential Takes on Bumps and Dips, Turning Every Trip into a ...

Telenor, Sony and Ericsson Team to Develop Smart IoT Healthcare Devices

FEM Collaborates with Arab Comedian Maya Acra to Address the Taboo Around the To ...

Allocations to Emerging Markets Debt and ESG-Related Bonds on the Rise

Twentieth “World Milk Day” Sees NFPC Innovate With New Products That Meet Changi ...

Debut Arabian Travel Market Virtual Event gets Underway Tomorrow

Sony Middle East & Africa Introduces New Digital Camera ZV-1, designed for Vlogg ...

Renault of Arabian Automobiles presents exceptional offer on DOKKER

Save the Date for Triyas Challenge 2021

Omega Announces Its Role as the Official Timekeeper of the 36th America's Cup

LG Joins Hedera Governing Council to Accelerate Innovation and Adoption of Publi ...

Maserati Commemorates the American Victories of the 8CTF at the Indianapolis 50 ...

The new BMW 5 Series

Parmigiani Fleurier Toric Fleur

Blue Ocean for Islamic Finance Industry

DTTAG New Executive Committee to Manage Post Covid 19 Return to Normalcy of Trav ...

Commodity Weekly: Crude Oil Frets Geopolitics, Sluggish Demand Bounce

Emirates Post Unveils Modern New Website and Look

Trina Solar Recognized as a "Top Performer" Module Manufacturer for Si ...

Al Ruwad Real Estate Appoints Alaa Masoud as General Manager of Sales and Market ...