Arab Bank Group reports 61% growth in net profits and 20% cash dividends

DUBAI, Arab Bank Group closed 2021 reporting net income after tax of $314.5 million as compared to $195.3 million in 2020, recording a growth of 61%. Group equity grew to reach $10.3 billion.

The Board of Directors has recommended to the shareholders the distribution of 20% cash dividends for the financial year 2021.

Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts increasing total assets by $8.4 billion to reach $63.8 billion compared to $54.4 billion for the same period last year.

Customer deposits grew by 22% to reach $47.1 billion, while loans grew by 30%, to reach $34.6 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7.3 billion and $7.5 billion, respectively.

Sabih Masri, Chairman of the Board of Directors stated that the underlying performance reflects its strategic directive in dealing with the challenging and changing operating environment and its prudent operating policies of maintaining strong liquidity and healthy capital positions.

Nemeh Sabbagh, Chief Executive Officer, commented that the year 2021 showed a partial recovery of the economic environment which the bank benefited from and recorded a growth in net interest and commission income by 15% with net operating income increasing by 8% to reach $1,108 Million. He added that the Group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.4% and a capital adequacy ratio of 16.5%. The Group continues to hold credit provisions against non-performing loans in excess of 100%.

Sabbagh also noted the bank’s ambitious vision towards embracing digital transformation as an integral part of its strategy. The bank launched in 2021 Reflect, the first Neobank in Jordan, which provides a branchless experience to millennials and facilitates their daily lifestyle activities from one banking app.

Masri concluded by referring to Arab Bank’s ongoing commitment towards integrating sustainability into its operations in a strategic manner which dovetails with the bank’s efforts to support sustainable community development.

Source: Emirates News Agency