Jordan’s Arab Bank releases strong results

Jordan-Based Arab Bank reported Monday a 13 percent growth in net profit year on year for the first nine months of 2012 with total assets standing at $45.2 billion. Net profits after tax and provisions reached $484.5 million compared to $428.8 million for 2011. Arab Bank CEO Nemeh Sabbagh attributed the growth in net profits to an increase in operating and net interest income. Operating income increased 7 percent to reach $1329.2 million, up from $1245.9 million, while operating expenses grew by 5 percent. Customer deposits grew to $32.4 billion, while credit facilities reached $20.1 billion. The bank, which has a network spanning over 30 countries, announced a high capital adequacy ratio of 14.73 percent exceeding the 8 percent minimum required by the Basel Committee with a loan deposit ratio of 62 percent. Credit rating agency Fitch affirmed on July 25 the rating of Arab Bank at A- with a stable outlook. A statement released by the bank said Chairman Sabih Masri was “pleased with these positive results at a time when a number of countries in the region are facing a challenging environment and the world economy is slowing down.” The board of Arab Bank elected Masri in August to take over at the helm of the bank after the resignation of Abdel Hamid Shoman in a dispute over the chairman’s power. Shoman abruptly resigned on Aug. 16 after the board and key shareholders failed to back him in a power struggle with CEO Sabbagh, in which Shoman was accused of meddling in the day-to-day running of the bank. From DailyStar