World Economy

Arab Bank Group Posts H1 Profit

Arab Bank Group Posts H1 ProfitArab Bank Group Posts H1 Profit

Arab Bank Group achieved net profits worth $422.9 million in the first half of the year, marking a growth of 2% compared to $414.9 million in the same period of last year. Net profits before taxes reached $559.7 million.

Loans and advances grew to reach $24.1 billion, compared to $23.7 billion on 30 June 2014. Customer deposits also increased to reach $34.8 billion in June 2015, compared to $34.4 billion at the end of June 2014. Excluding the effect of exchange rate devaluations, loans and customer deposits increased by 5% and 4%, respectively, Albawaba reported.

Arab Bank Chairman Sabih Masri stated that the bank’s positive financial performance during the first half affirms the bank’s progress in implementing its successful strategy and its continuation to achieve strong performance despite all challenges in the region.

These results confirm the successful external strategy of the bank, represented in the banking markets in the Persian Gulf, which is one of the bank’s pillars, due to the promising opportunities they bring.

Nemeh Sabbagh, Arab Bank’s CEO, said the net operating income grew by 4% to reach $590.8 million, thanks to the bank’s focus on its core banking activities, as well as its efficient asset allocation.

Sabbagh added that the bank continues to maintain comfortable liquidity ratios as a strategic goal, with a loan-to-deposit ratio of 62.5%, as well as maintaining a capital adequacy ratio of 14.3%.