MEED: Which area of business do you expect to be the main driver of growth for Arab Bank?

Abdel Hamid Shoman: We plan to continue growing organically through expanding our branch network and increasing our capabilities in terms of products and services.

Specifically, we will continue to carefully grow our consumer banking business, which is still relatively new and has a high potential for growth.

Will Arab Bank’s reputation as a conservative bank be a hindrance as growth returns?

Arab Bank’s strong and successful historical performance is a result of long-term, prudent and thorough banking practices. Returns alone were never the aim of the bank. Sound performance also includes having a strong capital base, high liquidity ratios and the ability to absorb any economic or political shocks that occur from time to time. Our business model has proved effective during a declining economy, as well as a growing one. We have capitalised on growth and protected our shareholders during decline.

Which new countries would you most like to see Arab Bank expand into?

Geographically, our focus remains in the Middle East and North Africa, where we continue to further deepen our presence. There are no new markets planned, but if we feel there is potential and it fits our strategy and business model, then we will expand into new countries.

Arab Bank is strongest in some of the smaller Middle East markets. Do you have plans to boost yourpresence in the larger markets?

We have a presence in almost all of what we consider our principle markets. Internationally, we have either branches or subsidiaries in all the main financial or trade centres across the globe, especially those that have trade, investment or financial ties with the Arab world or where the Arab community is present.

We will continue to strengthen our operations across our network.

Are there fewer political risks these days than, say, in the 1960s when many of your branches werenationalised?

The Middle East is on track towards increased stability and there are fewer risks today than there were in the 1960s. Central banks in the Middle East have been very effective in introducing sound monetary and regulatory policies that have made for a more stable operating environment.

As evidence of the burgeoning stability, Arab Bank has returned to many markets where it once lost branches to nationalisation, take Libya, Egypt and Sudan for example. However, we take into consideration all possibilities and prefer to be safe than sorry, hence our conservative approach to liquidity, strong capital adequacy, credit and risk management policies.

Non-performing loans (NPLs) grew in 2008 and 2009. Will that continue this year?

We feel that NPLs have reached their peak. If we look at the current global NPL landscape, ratios of 8 per cent are common in many markets and at major global banks.

Even though there has been a rise in Arab Bank’s NPLs to more than 6 per cent, they are considered at a very healthy low ratio of about 3.3 per cent if you exclude a few one-off exposures.

What are the prospects for the Jordanian economy and how will they impact on Arab Bank’s fortunes?

In 2010, we expect Jordan to do quite well with economic growth trending upwards and inflation remaining in check.

The government has lived up to its promise of reducing the budget deficit by following a properly designed austerity programme that other countries are also pursuing. We will probably see an increase in foreign direct investment and in remittances, as the information technology, transportation, tourism and real estate sectors gradually recover and as oil prices moderately rise to the vicinity of $80 a barrel.