Arab Bank Group reports Q1 net profit of $128.3mln

Arab Bank Group has reported a net income after tax of $128.3 million as compared to $147.6 million for the same period last year, recording a drop of 13 per cent.

The consolidation of Oman Arab Bank under the Group accounts has materially increased the size of group balance sheet during this period, with total assets increasing by $8.1 billion and loans and deposits each increasing by $7.1 billion.

Customer deposits grew by 30% to reach $45.8 billion as compared to $35.2 billion, while loans grew by 28% to reach $33.5 billion as compared $ 26.2 billion.

Chairman Sabih Masri said these results reflect the banks resilient performance in this challenging economic environment, as compared to the pre-covid normal operating environment which prevailed in the first quarter of the last year.

Oman Arab Bank has also recently finalized the acquisition of Al Izz Islamic, a full-fledged Islamic bank, accordingly strengthening its presence in the sultanate, in line with Arab Banks strategy to reinforce its business in the Gulf region.

CEO Nemeh Sabbagh said that while operating revenue continues to be impacted by low interest rates and a higher cost of risk, the banks performance demonstrates its robust fundamentals, its highly liquidity and its strong capital base with equity of $10 billion, capital adequacy of 16.4%, and a loan to deposit ratio of 73.1%.

Masri said the bank was hopeful of its future economic prospects. "The high pace of vaccination programmes witnessed by countries around the world will hopefully lead to the gradual recovery of regional and global economies."

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