Jordan-based Arab Bank has announced an increased profit of US$424.9 million for the first half of this year compared with the $422.9m it recorded for the same period last year.
The group said results were driven by the bank’s diversified business model allowing it to withstand volatile market conditions. Loans and advances reached $24.2 billion with customer deposits stable at $34.8bn; both loans and customer deposits grew by 3 per cent.
The bank admitted that conditions were challenging and required focus and vigilance with the long-term implications of the Brexit decision still unknown.
“Despite the challenging environment, the results affirm the bank’s ability to deliver strong profitability while maintaining a solid balance sheet,” said Nemeh Sabbagh, the chief executive of Arab Bank. He said loan quality remained strong with the provisions coverage ratio exceeding 105 per cent, excluding the value of collaterals held.
“Liquidity continues to be strong, with a loan-to-deposit ratio of 69.5 per cent and shareholders equity is at $8.1bn. The results of the United Kingdom’s European Union membership referendum has had no impact on the bank, although the long-term implications of Britain’s exit from the EU will not be known for a while.”
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