Arab Bank Group posts 2017 net at $533m

28/01/2018 10:02 AST

Arab Bank Group has posted net income after tax at $533 million during 2017 as compared to $532.7 million in the previous year.

Net operating income stood at 8 per cent as compared to prior year, while loans and advances grew by 6 per cent to reach $25.1 billion.

Excluding the effect of foreign currency devaluations, net operating income achieved double digit growth of 12 per cent.

The Board of Directors has recommended to the shareholders the distribution of 30 per cent cash dividends for the financial year 2017.

Sabih Masri, chairman of the Board of Directors stated that the strong performance of Arab Bank Group confirms the success of the Group in dealing with the challenging and changing operating environment and reflects the Group's prudent operating policies.

Nemeh Sabbagh, chief executive officer, stated that the solid results of Arab Bank Group for 2017 were driven by sustainable growth in the underlying business, spread improvements and well controlled expenses.

Sabbagh remarked that Arab Bank Group enjoys strong liquidity and robust capitalization. As of 31 December 2017, the Group's loan-to-deposit ratio stood at 74 per cent, whilst the capital adequacy ratio calculated in accordance with Basel III regulations is at 15.3 per cent. He added that the asset quality of the Group remains to be high, with NPL ratio at 5.2 per cent, and credit provisions held against non-performing loans at 100 per cent, excluding the value of collaterals.

Masri concluded by remarking that the encouraging results will continue to support the continuous improvement in the financial performance of the Group and its position in its markets.

Arab Bank was named "Bank of the Year in the Middle East for 2017" by The Banker - Financial Times, London and "Best Bank in the Middle East for 2017" by Global Finance, New York.

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