| 08 Oct 2008 |
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Arab Bank unaffected by int'l financial crisis - Shoman
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AMMAN - Arab BankArab Bank
enjoys a strong and sound financial and credit position and the global financial crisis has not affected its performance, Arab BankArab Bank Chairman/CEO Abdul Hamid Shoman said on Tuesday.He highlighted "prudent policies" the bank follows as the reason behind the immune situation of the institution, adding that such policies are designed to ensure effective risk management in the market where the bank and Arab Bank GroupArab Bank Group operate.
Meanwhile, Shoman announced in a statement yesterday that Arab Bank PlcArab Bank Plc.'s profits during the first nine months of this year rose by 16 per cent compared to the same period last year.
Profits during the first three quarters stood at JD367.3 million before taxes and after provisions, compared with JD317.9 million during the same period last year with an increase by JD49.4 million, said Shoman.
He said Arab Bank GroupArab Bank Group
net profits before taxes and after provisions during the first nine months of 2008 amounted to $843.2 million, compared with $714.4 million in the same span last year with an increase of $128.8 million and a growth rate of 18 per cent.Commenting on Arab BankArab Bank's disclosure, Jawad Kharouf, president of the Association of Certified Capital Market Professionals, said: "The disclosure of Arab BankArab Bank on how it is not affected by the global financial crisis is excellent. It puts an end to the rumours about the bank in the market. This is exactly what we need to stop the dumping of shares in the market. Other banks should also make it clear about their financial status in light of the crisis."
"The disclosure by Arab BankArab Bank
is the beginning to restore the investors' confidence in the Amman Stock Exchange. Such disclosures reassure investors and we hope other banks follow suit," Kharouf told The Jordan Times on Tuesday.Shoman said in the statement that Arab BankArab Bank, whose prudent policy relies on keeping high percentages of liquidity, still maintains a liquidity ratio that is considered the highest among working banks at the regional and international levels.
Arab BankArab Bank maintains high percentage of capital adequacy that stands at 17 per cent for Arab BankArab Bank and 18 per cent for the Arab Bank GroupArab Bank Group, Shoman said in the statement.
On the impact of the global financial crisis on Arab BankArab Bank, Shoman said it is only restricted to Arab BankArab Bank's participation in corporate bonds issued by Leman BrothersLeman Brothers, where Arab BankArab Bank's share stood at a total volume of $20 million.
Shoman said the bank's policy in diversifying investments at sectoral and geographical levels and in adopting conservative banking and investment policies are constants at Arab Bank PlcArab Bank Plc. throughout the nearly eight decades since its inception, stressing that the bank will continue to implement its strategic plan that proved its large success and realised profitable returns.
By Mohammad Ghazal
© Jordan Times 2008
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