Arab Bank reports $617.9 million in Q3 net profits

AMMAN — Arab Bank Group reported net profit after tax and provisions for the period ending September 2016 of $617.9 million, compared to $615.1 million in the same period last year, while its net profit before tax reached $815.8 million, according to an Arab Bank Group statement.

The bank maintains a healthy capital base with shareholders equity standing at $8.3 billion, said the statement.  Its balance sheet remains strong with loans and advances growing by 3 per cent to reach $24.4 billion compared to $23.6 billion in the third quarter of 2015, it added. 

Customer deposits grew by 2 per cent to reach $35.5 billion compared to $34.8 billion for the same period last year. Excluding the impact of foreign currency devaluations, both loans and customer deposits grew by 5 per cent and 4 per cent, respectively, the bank reported.

Sabih Masri, Arab Bank’s chairman said: “The Bank’s solid financial performance during the first nine months reaffirms the Bank’s progress in implementing its prudent business strategy and its ability to deal with the challenging circumstances.” 

In remarks, Nemeh Sabbagh, Arab Bank’s CEO, said the Bank’s financial priorities remain focused on ensuring sustainable growth. 

Sabbagh said the Bank continues to maintain solid liquidity, as the loan to deposit ratio stood at 68.8 per cent. It has also maintained the high quality of its credit portfolio with the provisions coverage ratio for non-performing loans in excess of 108 per cent, excluding the value of collaterals held.

The Arab Bank was named the “Best Bank in the Middle East for 2016” and the “Best Trade Finance Bank in the Middle East” by Global Finance magazine.