Jordan-based Arab Bank Group has reported a net income after tax for the first quarter of 2022 of $166 million when compared to $128.3 million for the prior period, recording an increase of 29.4%.

 

The group loan portfolio grew by 5% to reach $35.2 billion as of March 31, 2022 compared to $33.5 billion for the same period last year, while customer deposits grew by 3% to reach $47.3 billion compared to $45.8 billion for the same period last year. 

 

The increase in loans and deposits in most areas of operations are in line with the bank’s sustainable growth strategy to expand and diversify its clients and deposit base. The group maintained its strong capital base with a total equity of $10.2 billion.

 

Chairman Sabih Masri said the results achieved in Q1 reflect the bank’s strong financial position and its ability to deliver sustainable performance, while prudently managing the regional and global developments. 

 

"The underlying performance of the group continues on its growth path with first quarter results driven by an increase in core banking income and a lower cost of risk, highlighting that the Bank’s net interest and commission income increased by 6.3% compared to prior period, despite ongoing market volatilities," remarked Randa Sadik.

 

She said Arab Bank Group enjoyed strong liquidity in the form of a granular deposit base and strong capitalization where loan-to-deposit ratio stood at 74.3%, and the capital adequacy ratio is at 16.5% in accordance with Basel III regulations. 

 

She also added that the asset quality of the group remains high, with credit provisions held against non-performing loans continue to exceed 100%.