Arab Bank Group, one of the largest financial institutions in the Middle East, has reported solid results for the FY 2023, recording a net profit of $830 million, up 52% over $544.3 million the previous year. 

 

Announcing the results for the year ending December 31, 2023, Arab Bank said the group’s performance was mainly driven by sustainable growth in the underlying business across different markets, as net profit before provisions and tax improved by 34% to reach $1.81 billion. 

 

Total assets grew by 6% to reach $68.3 billion, loans grew by 5% to reach $37.1 billion, and deposits grew by 6% to reach $50.6 billion. While total Group equity stood at $11.4 billion.

 

Impressed by the solid results, the Arab Bank Group's board of directors has recommended to the shareholders the distribution of 30% cash dividends for the financial year 2023.

 

"The bank's strong underlying performance reflects the successful execution of its strategy which focuses on delivering sustainable growth and building a resilient business model capable of generating positive results, while dealing with the regional and international challenges," remarked its Chairman Sabih Masri.

 

Masri pointed out that the bank’s record net operating profit was a clear testament to its strong growth momentum across several markets, specially in the GCC region and international markets.

 

CEO Randa Sadik said Arab Bank had delivered robust results during 2023, where its net operating profit grew by 34% driven by increase in core banking income across various sectors and markets, with a clear focus on enhancing non-interest income contribution and revenue diversification. 

 

"This was achieved while the Bank continued to invest in transformation and maintaining a resilient balance sheet, which will position us for further growth in the future," stated Sadik. 

 

According to her, the group’s liquidity and asset quality remained solid where loan-to-deposit ratio stood at 73.2% and credit provisions held against non-performing loans continued to exceed 100%. 

 

Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.5%.

 

Sadik pointed out that as part of Arab Bank’s commitment towards sustainability and its environmental, social and governance (ESG) priorities, it successfully issued $250 million in sustainable Additional Tier 1 (AT1) Capital Securities. 

 

"The issuance marks the first and largest sustainable perpetual AT1 issue in Jordan and was listed on the International Securities Market (ISM) and the Sustainable Bond Market of the London Stock Exchange," she added.

 

With regard to the bank's ongoing commitment towards digital transformation and providing value for its customers, Sadik said the establishment of Arab Bank’s technology arm, 'Acabes International' as a global capability centre, was aimed at supporting the bank’s businesses worldwide. 

 

Arab Bank, in collaboration with Acabes, had recently launched an updated version of 'Reflect' offering more features and services to its users. 

 

"This is in addition to launching "Arabi Shopix", a first of its kind service in the Kingdom which offers Arab Bank customers, including merchants, the ability to build and design an e-commerce website as part of the host of integrated digital banking solutions designed to meet the needs of SMEs through the Arabi SMEs programme," she noted.

 

On its future plans, Masri said the bank was in the process of starting its operations in the Iraqi market this year, providing comprehensive banking solutions and services to its current and future customers. 

 

This come as part of the bank's expansion strategy, and is in line with the bank's continuous efforts to expand its footprint in promising markets.

 

Masri said the bank was focused on expanding its wealth management and private banking business globally. "In 2023, Arab Bank Switzerland had acquired a majority stake in the family holding company which owns a deep-rooted Swiss bank Gonet & Cie SA."

 

"The new banking group will be a major actor in the Swiss wealth management industry, with assets under management in excess of CHF10 billion ($11.7 billion)," he added.-TradeArabia News Service