Arab Bank Group profits up 4pct in H1 at $453 million

The Arab Bank Group's profits in the first half of 2019 edged up by 4 percent indicating a net pre-tax profit of $453 million against $436 million in the same period in 2018. 

In a statement released Saturday, the group said its loan portfolio inched up by 3 percent to $26.2 billion, while deposits rose to $34.1 billion, up by 3 percent. The group's equity stood at $8.7 billion.

Despite continued economic slowdown in the region, the group continues to deliver strong financial performance, said Sabih Masri, Chairman of the Arab Bank Group Board, affirming that the group's results reflect effective risk management and ability operate in a challenging environment.

Nemeh Sabbagh, the Bank's Chief Executive Officer, said the underlying performance of the Group is on an upward trajectory, citing a 5-percent increase in net operating income. He added that the strong performance was driven by growth in core banking income with net interest income increasing by 5 percent.

The Arab Bank Group enjoys high liquidity and strong and robust capitalization, Sabbagh indicated, noting that the group’s capital adequacy ratio stood at 15.8 percent and loan-to-deposit ratio reached 76.9 percent as of 30 June 2019. 

Asset quality, he added, remains high and credit provisions held against non-performing loans exceed 100 percent. 

The Arab Bank was recently named "The Middle East’s Best Bank 2019", by Euromoney – London in addition to "Best Bank in the Middle East" for a 4th consecutive year by Global Finance, New York.