The group’s portfolio grew by 5% (recorded at end of March 2022) to reach $35.2 billion
Arab Bank Group saw a positive incline in net income during the first quarter of 2022, reporting a climb of 29.4% to hit $166 million as compared to $128.3 million in Q1 of 2021.
The group’s portfolio grew by 5% (recorded at end of March 2022) to reach $35.2 billion compared to $33.5 billion in Q1 2021, wrote the group’s quarterly report.
Sabih Masri, Chairman of the Board of Directors, stated that the first quarter’s results reflect the bank’s strong financial position and its ability to deliver sustainable performance, while prudently managing the regional and global developments.
Customer deposits grew by 3% to reach $47.3 billion compared to $45.8 billion for the same period last year.
In line with the bank’s sustainable growth strategy to expand and diversify its clients and deposit base, the report noted an increase in loans and deposits in most areas of operations, maintaining its strong capital base with a total equity of $10.2 billion.
CEO Randa Sadik that 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.
Sadik commented that Arab Bank Group enjoys 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. Sadik also added that the asset quality of the Group remains high, with credit provisions held against non-performing loans continue to exceed 100%.
Masri concluded by expressing his confidence in the Group’s ability to maintain its leading position and to capture new business opportunities to deliver sustainable profitable growth.