Middle East – Arab Bank Group closed 2017 with solid results, reporting a growth in net operating income of 8% as compared to prior year. Excluding the effect of foreign currency devaluations, net operating income achieved double digit growth of 12%. Net income after tax is at $533mn as compared to $532.7mn in 2016, whilst loans and advances grew by 6% to reach $25.1bn.
In view of the results, the Board of Directors has recommended to shareholders the distribution of 30% cash dividends for the financial year 2017.
Sabih Masri, Chairman, Board of Directors, stated that strong performance of Arab Bank Group confirms the success of the Group in dealing with challenging and changing operating environment and reflects the Group’s prudent operating policies.
Nemeh Sabbagh, Chief Executive Officer, said, the solid results of Arab Bank Group for 2017 were driven by sustainable growth in underlying business, spread improvements and well controlled expenses. Sabbagh remarked that Arab Bank Group enjoys strong liquidity and robust capitalisation. As of December 31, 2017, the Group’s loan-to-deposit ratio stood at 74%, whilst capital adequacy ratio calculated in accordance with Basel III regulations is at 15.3%. He added the asset quality of the Group remains to be high, with NPL ratio at 5.2%, and credit provisions held against non-performing loans at 100%, excluding the value of collaterals.
Masri concluded saying the encouraging results will continue to support continuous improvement in the financial performance of the Group and its position in its markets.
The 2017 financial statements are subject to the approval of the Central Bank of Jordan.