Arab Bank Group, Jordan’s largest lender and the biggest publicly-traded company on the Amman bourse, reported a 3.2 per cent increase in its full-year net profit due to higher revenues and lower expenses.
Net profit after tax for the year ending December 31, 2019 climbed to $846.5 million (Dh3.1 billion), the lender said in a statement on Saturday. Revenue grew 4.6 per cent year-on-year to $2.23 billion, whereas expenses fell 3 per cent compared to 2018.
The group's "strong performance" last year was driven by sustainable growth in the underlying business and by well-controlled expenses, Nemeh Sabbagh, chief executive of Arab Bank, said.
“Arab Bank continues to deliver consistent and sustained growth, while investing for the future through the prudent and efficient deployment of capital, and by building a resilient balance sheet through its disciplined and proactive approach to risk management,” he said.
The group’s net operating income also grew 5 per cent, driven by growth in interest and fee income, according to the statement.
The amount of credit facilities the bank extended grew 1.2 per cent to $26.1bn while customer deposits increased 6 per cent, or by almost $2bn, to $36.2bn.
Mr Sabbagh also said that while the operating environment for most regional economies remains challenging, “Arab Bank’s strength, its broad and loyal customer base, diversified business model and wide geographical diversification" contributed to its performance.
He said the bank enjoyed a well-funded balance sheet, strong liquidity and a robust capital position. The bank's equity grew by 5 per cent during the year to over $9bn by year-end, despite an exceptional 45 per cent cash dividend being paid following dismissal of a legal case against it. By the year-end, the bank had a capital adequacy ratio of 16.2 per cent and held credit provisions equating to more than 100 per cent of non-performing loans, the statement said.
In view of the solid results, the bank's board has recommended the distribution of a 30 per cent cash dividend to shareholders for the 2019 financial year, equating to a payout of more than $270m.
