Arab Bank Group reported a growth of 52 per cent in net income after tax of $829.6 million for the year ending December 31, 2023, as compared to $544.3 million in 2022.
The group’s performance was driven by growth in the underlying business across different markets, as net profit before provisions and tax improved by 34 per cent to reach $1.81 billion. Total assets grew six per cent to reach $68.3 billion, loans grew by five per cent to reach $37.1 billion, and deposits grew six per cent to reach $50.6 billion. Total group equity stood at $11.4 billion.
The Board of Directors has recommended to the shareholders the distribution of 30 per cent cash dividends for the financial year 2023.
Sabih Masri, chairman of Arab Bank, said that 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.
Randa Sadik, chief executive officer, stated that Arab Bank delivered robust results during 2023, where the Bank’s net operating profit grew by 34 per cent 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.
She added that the Group’s liquidity and asset quality remains solid where loan-to-deposit ratio stood at 73.2 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.5 per cent.
As part of the bank’s expansion strategy, and in line with the bank’s continuous efforts to expand its footprint in promising markets, Masri said that the bank is in the process of starting its operations in the Iraqi market this. In line with the group’s focus on expanding its wealth management & private banking business, he noted that last year, Arab Bank Switzerland acquired the majority stake in a family holding company that owns Gonet & Cie SA, a deep-rooted Swiss bank. The new banking group will be a major player in the Swiss wealth management industry, with assets under management in excess of 10 billion Swiss francs.