AMMAN -- Arab Bank Group announced on Saturday in a press statement that net profit after tax and provisions for the year ended 2012 grew by 15 per cent from $305.9 million in 2011 to $352 million in 2012.
Stressing the bank's prudent risk management policies and practices, Chairman Sabih Masri described this profitability as a good result when seen in light of a challenging political and economic environment.
"The board of directors will recommend to the general assembly of shareholders that dividends be distributed at a rate of 30 per cent for 2012 as compared to 25 per cent in 2011 and 20 per cent in 2010," the press release quoted him as saying.
According to Chief Executive Officer Nemeh Sabbagh, the bank has continued its prudent policies with regards to asset quality and, in that respect, fully provided for the exposures of Saad and Al Gosaibi, and increased the provisioning coverage on all non-performing loans to reach in excess of 100 per cent, excluding the value of collaterals held.
Sabbagh indicated that net operating income during the year grew by 8 per cent as a result of a healthy increase in net interest income and maintaining expenses under control.
He also stressed the importance of maintaining high levels of liquidity which has been and continues to be a strong hallmark of the bank as well as maintaining a strong capital base.
The bank's capital adequacy ratio at the end of the year stood at a healthy 15.09 per cent.
The bank's results are subject to Central Bank of Jordan final approval.
© Jordan Times 2013
