Arab Bank Group has seen more ups and downs than most of its peers in the region, due to operating in countries that have suffered frequent bouts of political turmoil. Today, it is among the leading institutions in the region, with solid credit ratings, a record of consistent profitability and a strong financial base.

It also ranks among the most diversified banks in the region, which helps it to ride out downturns in individual markets. In 2009, for example, profits fell in some parts of the group, including Islamic International Arab Bank and Arab Bank Syria, and it made a loss in other divisions including Arab Bank Australia. However, others areas of the business did far better, with profits rising at Arab Tunisian Bank and Al-Wahda Bank in Libya.

Its conservative reputation has served it well during the recent economic downturn. Customer deposits grew by JD140m ($197m) last year to reach JD15.1bn at the end of December 2009. There is still some political risk to operating in countries such as Sudan, but given the fact that the bank’s Sudanese division only contributed a profit of SD2m ($843,000) in 2009, it is unlikely to lead to problems at the group level.

In terms of market share, Arab Bank is most dominant in the Occupied Palestinian Territories, where it controls 33 per cent of all bank assets and 36 per cent of all deposits. Second is Jordan, where it controls 24 per cent of assets and the same proportion of deposits, followed by Yemen, where it has 12 per cent of all assets and 13 per cent of deposits.

All three markets are, however, relatively small. In the more important regional banking centres, Arab Bank remains a minnow, with just 4 per cent of all bank assets in Bahrain, 1.25 per cent in Lebanon and 0.86 per cent in the UAE.

Despite such limitations, the bank is thriving. Given its turbulent history, this is quite an achievement and there are unlikely to be any radical changes in strategy any time soon.