Arab Bank Group profits grow by 38% to $252m

Arab Bank Group reported a net income after taxes of $252 million for the first half of 2022, up from $182.4 million for the same period in 2021, a 38% rise.

When compared to the same period last year, the Group loan portfolio increased by 6% to reach $35.7 billion as of June 30, 2022, from $33.8 billion. Meanwhile, customer deposits increased by 2% to $47.1 billion from $46 billion.

The increase in loans and deposits is consistent with the Bank’s strategy for sustainable growth, which calls for diversifying and growing its clientele, loan portfolio, and deposit base. With $10.2 billion in total equity, the Group maintained its solid capital basis.

The performance in the first half of the year, according to Mr Sabih Masri, Chairman of the Board of Directors, illustrates the Group’s conservative operational strategies and strong financial position, despite a difficult economic climate.

The Bank’s lines of business saw a 6% increase in net operating income, according to Ms Randa Sadik, Chief Executive Officer. This growth was attributed to increases in net interest income of 4% and commission income of 17%, respectively, as well as well-controlled group underlying operating expenses.

The asset quality of the Group is high, with credit provisions retained against non-performing loans continuing to surpass 100%, and the loan-to-deposit ratio for the Group was 75.9%, Ms Sadik stated. Arab Bank Group maintains a sound capital basis, the majority of which is made up of common equity, with a capital adequacy ratio of 16.4%.