Amman, Feb. 1 (Petra) – Arab Bank Group announced its financial results for 2024, achieving strong financial performance and growth across various business sectors. The group’s net profit after taxes and provisions amounted to $1.007 billion, compared to $829.6 million in 2023, reflecting growth of 21%. The bank also maintained a solid financial position, with shareholders’ equity reaching $12.1 billion.

The group continued its growth trajectory throughout 2024, benefiting from a strong financial foundation, its extensive branch network, and its presence in numerous countries. Operating profits increased by 7%, reaching nearly $2 billion. Excluding the impact of exchange rate fluctuations against the US dollar, the group’s assets grew by 6%, reaching $71.2 billion by the end of 2024. The loan portfolio grew by 6% to $38.3 billion, while customer deposits increased by 5% to reach $52.2 billion.

In light of these preliminary financial results, subject to approval by the Central Bank of Jordan, the Board of Directors of Arab Bank has recommended a 40% cash dividend to shareholders for 2024.

Commenting on the results, Sabih Masri, Chairman of Arab Bank Group, highlighted that the bank’s exceptional performance in 2024 is a culmination of its successful policies. These policies focus on a diverse range of business activities, a broad product portfolio, and various revenue sources across the many countries in which it operates.

Masri reaffirmed the bank’s commitment to customer-centric priorities and its strategy to achieve sustainable profits for its shareholders, alongside continued operational profit growth in key regions, particularly the Gulf Cooperation Council (GCC) countries.

He also emphasized the group’s efforts in environmental, social, and governance (ESG) sustainability, underscoring its ongoing work to foster a culture of sustainability within its operations.

Regarding the bank’s expansion strategy, Masri mentioned that Arab Bank has obtained the final license to operate in Iraq, with operations set to begin in early 2025. Additionally, the bank is enhancing its wealth management and private banking services through the anticipated merger of Gonet Bank (owned by Arab Bank Switzerland) with ONE Swiss Bank.

Randa Sadik, CEO of Arab Bank, pointed out that the bank’s strong 2024 performance was driven by substantial growth in diverse income sources from its main business sectors and markets. This was complemented by disciplined cost and risk management, resulting in good growth in operational profits driven by increased net interest income and fees, improved lending levels, and enhanced liquidity management.

Sadik also emphasized that the bank’s solid performance is reflected in the quality of its credit portfolio and its provision coverage ratio for non-performing loans, which exceeds 100% without accounting for collateral. She further mentioned the bank’s high liquidity levels, with a loan-to-deposit ratio of 73%, and a strong capital base, with a capital adequacy ratio of 17.2%, well above the minimum required by the Central Bank of Jordan.

In terms of digital transformation, Sadik stated that the group is focusing on improving operational efficiency through digital technologies and artificial intelligence tools as part of a comprehensive digital transformation program across all business sectors. Additionally, the group continues to implement its digital strategy to provide digital banking services that meet the evolving needs of its customers.

In 2024, Arab Bank, through its technology arm Acaps, launched “OMNIFY,” an advanced digital banking platform enabling companies and non-bank entities to offer banking and financial services to their clients.

The bank also completed an merger agreement between Gonet Bank (Arab Bank Switzerland) and ONE Swiss Bank, which is expected to be finalized in mid-2025. This merger represents a key milestone in the bank’s growth strategy, creating a significant player in wealth management.

Notably, The Banker, owned by Financial Times, recently named Arab Bank the “Bank of the Year in the Middle East for 2024”, marking the second consecutive year of this achievement. Additionally, Global Finance Magazine awarded the bank the “Best Bank in the Middle East for 2024” for the ninth consecutive year.

These results are preliminary and subject to approval by the Central Bank of Jordan.

//Petra// AF
01/02/2025 22:21:44