Arab Bank Group achieved solid results for the period ending December 31, 2022, with net income after tax of $544.3 million as compared to $314.5m in 2021.
The group’s performance was driven by robust growth in its core banking business across different markets, as net profit before provisions and tax increased by 23 per cent to $1.35 billion.
Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 5pc to $35.4bn and $47.7bn, respectively, despite the volatile operating environment.
In view of these results, the board of directors has recommended to the shareholders, the distribution of 25pc cash dividends for the financial year 2022.
Sabih Masri, chairman, commented that Arab Bank was able to achieve several key strategic objectives in 2022 despite the challenges that emerged during the year. He also added that the results reflect the bank’s unique footprint as well as its diversified franchise and rooted presence in several markets.
Randa Sadik, chief executive, said that Arab Bank continued to deliver sustainable growth rates during 2022 despite the economic challenges stemming from high inflation, increased interest rates and the devaluation in exchange rates of several currencies against the US dollar.
The bank’s net operating profit grew by 23pc driven by the growth in revenues from its core banking business, its diversified sources of income, with focus on non-interest income, as well as controlling operating expenses in line with the bank’s prudent strategy.
Ms Sadik added that the group’s liquidity and asset quality remains solid where loan-to-deposit ratio stood at 74.2pc and credit provisions held against non-performing loans continue to exceed 100pc.
Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.6pc.
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