Arab Bank Group has reported a 52% growth in net income after tax, reaching $829.6 million compared to $544.3 million in 2022.
The group’s performance was fueled by sustainable market growth, with net profit before provisions and tax increasing by 34% to $1.81 billion. Total assets, loans, and deposits grew by 6%, 5%, and 6%, respectively, with total group equity at $11.4 billion.
The Board of Directors has recommended a 30% cash dividend distribution for 2023 due to the solid results.
Sabih Masri, Chairman of Arab Bank, attributes the strong performance to successfully executing the bank’s strategy, emphasizing sustainable growth and a resilient business model in the face of regional and international challenges.
Randa Sadik, CEO, notes that Arab Bank achieved robust results in 2023, with a 34% growth in net operating profit driven by increased core banking income across sectors and markets. The focus on enhancing non-interest income contribution and revenue diversification was maintained while investing in transformation and maintaining a resilient balance sheet.
The group’s liquidity and asset quality remain solid, with a loan-to-deposit ratio of 73.2% and credit provisions against non-performing loans exceeding 100%. The Arab Bank Group maintains a strong capital base, primarily composed of common equity, with a capital adequacy ratio of 17.5%.
As part of its expansion strategy, Arab Bank is set to commence operations in the Iraqi market in 2024, aiming to provide comprehensive banking solutions and services to current and future customers.
