ARAB BANK GROUP 01 Feb, 2015
Arab Bank Group reported net profit after tax and provisions of USD 577.2 million in 2014, a growth of 15% compared to the 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% for the year 2014, made up of cash dividends of 12% and distribution of two free shares for every sixteen shares.
Despite the challenging environment and the devaluation of several major currencies, the bank managed to grow loans and advances by 3% to reach USD 23.7 billion, compared to December 2013, while customer deposits grew by 2% to reach USD 35 billion. Adjusting for the impact of exchange rates and extraordinary items, loans and customer deposits grew by 9% and 7% respectively.
Commenting on the results, Mr.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%, excluding the value of collaterals held.
Mr. Nemeh Sabbagh, Arab Bank's CEO stated that Arab Bank 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%. Capital adequacy ratio reached 14.8% as at 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.
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