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Sun 30 Oct 2016 03:50 PM

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Jordan's Arab Bank nine-month net profit flat

Loans up by 3% while deposits down 2% at one of Arab world’s largest privately owned lenders

Jordan's Arab Bank nine-month net profit flat

Jordan's largest lender, Arab Bank Group, said on Sunday its January-September net profit came to $617.9 million, barely changed from the same period last year.

One of the Middle East's major financial institutions, Arab Bank Group's total loans rose 3 percent to $24.4 billion as of the end of September, while deposits increased 2 percent to $35.5 billion compared with the same period last year.

The bank, with a balance sheet of $46.4 billion, gave no figure for net profit in the third quarter alone.

Arab Bank is one of the Arab world's largest privately owned banks and operates in 30 countries. It owns 40 percent of Saudi Arabia's Arab National Bank ANB.

Chairman Sabih Al Masri said the bank continued to maintain a strong financial position by "effectively managing risk" and despite exchange rate fluctuations.

"The bank continued its steady progress in implementing its prudent business strategy and its ability to deal with the challenging circumstances," Masri said in a statement.

Arab Bank CEO Nemeh Sabbagh said liquidity continued to be robust with a loan-to-deposit ratio of 68.8 percent. The bank's provisions coverage ratio for non-performing loans stood in excess of 100 percent.

In January-September last year the bank made a net profit of $615 million.

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