Arab Bank Group has reported net profit after tax and provisions of US$577.2 million in 2014, a growth of 15 percent compared to profit reported in the previous year. To enhance the bank’s capital adequacy ratio and to further expand its business, the board of directors recommended distributing dividends of 24.5 percent for the year 2014, made up of cash dividends of 12 percent and distribution of two free shares for every sixteen shares held.
Despite the challenging environment and the devaluation of several major currencies, the bank managed to grow loans and advances by 3 percent to reach US$3.7 billion, compared to December 2013, while customer deposits grew by 2 percent to $35 billion. Adjusting for the impact of exchange rates and extraordinary items, loans and customer deposits grew by 9 percent and 7 percent respectively.
Commenting on the results, Sabih Masri, Arab Bank’s Chairman, explained that these results affirm the banks ability to deliver strong results, maintain a solid balance sheet and a quality portfolio. Loan quality remains very strong with no increase in non -performing loans and a provisions coverage ratio in excess of 100 percent, excluding the value of collaterals held.
Nemeh Sabbagh, Arab Bank’s CEO, said that Arab Bank had succeeded in growing its operating income benefiting from its diversified business model, and controlling operating expenses.
Key financial indicators remain strong as the bank’s liquidity continues to be robust with a loan-to-deposit ratio of 67.7 percent. Capital adequacy ratio reached 14.8 percent as at the end of December 2014.
As to the lawsuit filed against the bank in New York, the bank is confident of the soundness and strength of its legal position in the appeal stage.
Mr. Masri expressed his full confidence in the bank’s ability to maintain sustainable growth in profits and a strong level of capital adequacy. The bank’s results are subject to the final approval of the Central Bank of Jordan.
Source : WAM News Agency for United Arab Emirates
