Arab Bank Group's H1 net profit surges 59% to $401mln

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Jordan-based Arab Bank Group has reported solid results for the first half of 2023, with its net profit after tax increasing by 59% to hit $401 million when compared to $252 million for the same period last year.

Announcing the results for the six-month period ended June 30, 2023, Arab Bank Group said the strong performance was driven by robust growth in its core banking business across different markets.

The group maintained its strong capital base with a total equity of $10.6 billion, it stated, adding the loans grew to $36.1 billion and deposits reached $48.3 billion.

Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 2% & 5%, respectively.

Chairman Sabih Masri said the solid financial performance during the first six months underscores the resilience of the bank’s diversified business model that is based on prudent risk management practices and focused on achieving sustainable growth.

Masri emphasized on the bank’s commitment towards the execution of its innovation and digital transformation strategy to deliver the best banking experience to our clients.

CEO Randa Sadik pointed out that the strong financial results despite the volatility in the operating environment is a testament to the bank’s robust assets base and strong capitalization.

"Our bank’s net operating income grew by 50% driven by diversified core banking activities coupled with controlled operating expenses. Provisions held during the period reflect the bank’s prudent risk management strategy against the increased economic uncertainty witnessed globally and regionally," she noted.

The bank, she stated, was well positioned for sustained earnings growth with the support of its solid financial position, strong capitalization, and high liquidity levels.

The group’s loan-to-deposit ratio stood at 74.7% and credit provisions held against non-performing loans continue to exceed 100%, she added.

According to her, Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.8%.

In line with the bank’s commitment towards sustainability, it had recently released its 13th annual sustainability report featuring its achievements during 2022 on the environmental, social, and governance (ESG) fronts, she added.