Arab Bank profit up 20pc to $533m

03/05/1438 07:41 AST

Arab Bank Group posted a net profit after tax of $533 million for 2016, a growth of 20 per cent compared to $442 million for 2015.

The net operating income before provisions and taxes exceeded $1.1 billion, the bank said. Excluding the effect of foreign currency devaluations, the bank has shown a consistent solid growth during 2016 whereby loans and advances grew by 6 per cent to reach $23.7 billion and customer deposits grew by 3 per cent to reach $33.6 billion.

Sabih Masri, chairman of the board of directors, said the strong performance of Arab Bank Group confirms the success of the group in dealing with the challenging and changing operating environment and reflects its prudent operating policies.

Nemeh Sabbagh, chief executive officer, stated that Arab Bank Group enjoys strong liquidity and robust capitalisation. As of December 31, 2016, the group's loan-to-deposit ratio stood at around 70 per cent, whilst capital adequacy ratio calculated in accordance with the new Basel III regulations has improved further to reach 15.7 per cent. He added that the asset quality of the group remains to be high, and that credit provisions held against non-performing loans continue to exceed 100 per cent, excluding the value of collaterals held.

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.

In view of the results, the board has recommended to the shareholders the distribution of 30 per cent cash dividends for the financial year ended December 2016.

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