Arab Bank Group continued its solid financial performance during 2015, posting net profit after tax and provisions for the period endingSeptember2015 of $615.1 million, compared to $614.2 million in the same period last year. The Group’s net profit before tax reached $818.7 million.
The results confirm the Bank’s commitment to grow its business and strengthen its capital base with total shareholders’ equity reaching $8.2 billion as of September 30th, 2015.
Loans and advances grew to $23.6 billion and Customer deposits reached $34.8 billion. Loans and customer deposits increased by 2% and 5%, respectively as compared to last year, excluding the effect of exchange rate devaluations.
Mr. Sabih Masri, Arab Bank’s Chairman stated: “These results reflect the Bank’s successful execution of its strategy, despite the challenging environment, and the Bank’s focus on core banking activities and high quality asset.
Mr. Nemeh Sabbagh, Arab Bank’s CEO–added that the financial results demonstrated the Bank’s focus on a diversified business model and a prudent risk strategy. The ratio of non-performing loans improved to 4.8% and the provisions coverage ratio for non-performing loans stood in excess of 100%, excluding the value of collaterals held. Key indicators remain strong with the loan-to-deposit ratio at63.1% and the capital adequacy ratio standing at 14.02%.
Mr. Masri expressed his confidence in the Bank’s continued robust performance which reinforces its leading position in the market.
A settlement was reached to resolve the civil lawsuit filed in 2004 against the Bank in the Eastern District Court of New York. The Bank’s strong legal position in the appeal stage was instrumental in the conclusion of this settlement and without an admission of any wrongdoing by the Bank. This settlement enables the Bank to resolve this lawsuit which has lasted for eleven years, during which considerable effort and time have been spent. The court has granted the parties until May 16, 2016, to allow time to implement the settlement agreement.
Arab Bank received the award of Best Trade Finance Bank in the Middle East for the year 2015 from both “Global Finance” and “EMEA Finance” magazines. In addition, the Bank has also received the Best Bank in Jordan in 2015 from “Euromoney”, “The Banker Middle East” and “Global Finance” magazines.