Arab Bank profits rise by 12 per cent

06 February 1998
FINANCE

The Arab Bank group says its net profits rose by 11.6 per cent last year to $220.7 million, with a patchy performance in some Arab markets offset by strong earnings growth elsewhere. The bank's total assets rose by 5.7 per cent to about $16,800 million, while its total balance sheet, including contra accounts, reached $22,500 million at the end of 1997 from $20,800 million the year before. The group made a return on end of year assets of 1.31 per cent during 1997 and a return on end of year equity of 14 per cent.

The group, which has 300 branches in the Arab world, the West and Asia, reported a 7.2 per cent rise in customer deposits to $10,400 million, according to figures released to news agencies, while loans increased by 10.8 per cent to $7,570 million during the year. Arab Bank's shareholders' equity grew by 12.1 per cent to $1,570 million. The parent bank, which is listed on the Amman stock exchange, is planning to double its capital to JD 88 million ($124.1 million) by capitalising reserves.

Chairman Abdul-Majeed Shoman told Reuters in Amman on 27 January that Arab Bank's expansion plans include adding to its network of 15 branches in the West Bank and Gaza, from whence the bank has $1,500 million in deposits. Bank officials were not available to comment on the results as MEED went to press, or on reports in the market that the bank is planning to take full control of affiliates in Morocco and Tunisia. Banking sources say that Arab Bank has approached two rating agencies for a credit rating (MEED 23:1:98).

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