https://arab.news/buedw
RIYADH: Jordan’s biggest lender Arab Bank has reported 73 percent rise in profit to $544 million in 2022, compared to $314.5 million in 2021, driven by robust growth in its core banking business across different markets.
Amid higher operating income, Arab Bank’s net profit before provisions and tax increased by 23 percent to reach $1.35 billion in 2022, the bank said in a press statement.
Randa Sadik, CEO of Arab Bank, said that bank delivered 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.
She further noted that Arab Bank group’s liquidity and asset quality remain solid where the loan-to-deposit ratio stood at 74.2 percent and credit provisions held against nonperforming loans continue to exceed 100 percent.
It should be noted that the Arab Bank’s 2022 financial statements are subject to the approval of the Central Bank of Jordan.
Sadik pointed out that the group is currently maintaining a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.6 percent.
As profit soared in 2022, the bank’s board has recommended distribution of a 25 percent cash dividend to shareholders for the 2022 financial year.
Reaffirming Arab Bank’s commitment toward sustainability and its environmental, social and governance priorities, the bank has launched its Sustainable Finance Framework, in line with international principles, guidelines and best practices, Sadik added.
It would be pertinent to mention here the Arab Bank is the first bank in Jordan to adopt such a framework.
Reaffirming the progress of its digital transformation journey, Sadik added that the bank launched several digital banking services and solutions across various markets to meet the evolving needs and expectations of the different customer segments.
Sabih Masri, chairman of the board of directors at Arab Bank, noted that the financial results reflect the bank’s unique footprint as well as its diversified franchise and rooted presence in several markets.