Arab Bank Group reports net profit of $128.3 million in the first quarter of 2021

Arab Bank Group has developed the financial statements of Oman Arab Bank under Group accounts in the first quarter of 2021. Oman Arab Bank has also recently finalized the procurement of Al Izz Islamic Bank, a full-fledged Islamic bank, accordingly strengthening its presence in the Sultanate of Oman, in line with Arab Banks strategy to reinforce its business in the Gulf region. The consolidation of Oman Arab Bank under the Group accounts has materially increased the size of Group balance sheet during this period, with total assets increasing by $8.1 Billion and loans and deposits each increasing by $7.1 Billion.

Arab Bank Group disclosed the net income after tax of $128.3 million as compared to $147.6 million for the same period last year, recording a drop of 13%. Customer deposits grew by 30% to reach $45.8 billion as compared to $35.2 billion, while loans increased by 28% to reach $33.5 billion as compared $ 26.2 billion.

Mr. Sabih Masri, Chairman of the Board of Directors mentioned that the results of Arab Bank reflect the Banks strong performance in this challenging economic environment, as compared to the pre-covid normal operating environment which prevailed in the first quarter of the last year.

Mr. Nemeh Sabbagh, Chief Executive Officer, remarked that while operating revenue continues to be hit by low interest rates and a higher cost of risk, the Banks performance exhibits its robust fundamentals, its highly liquidity and its strong capital base with equity of $10 billion, capital adequacy of 16.4%, and a loan to deposit ratio of 73.1%.

Mr. Masri concluded by expressing his anticipation about the future economic prospects, noting that the high pace of vaccination programs witnessed by countries around the world will hopefully lead to the gradual recovery of regional and global economies.