Arab Bank held its ordinary and extraordinary general assembly meeting online on April 28th, 2020, in compliance with Defense Law (13) of 1992, Defense Order (5) of 2020, that was published officially on March 31st, 2020 and the procedures issued by H.E. the Minister of Industry – Trade & Supply on April 9th, 2020 in line with the defense orders listed above.
The meeting was headed by Mr. Sabih Masri, Arab Bank’s Chairman in the presence of the board of directors, the Chief Executive Officer and shareholders (in attendance and by proxy), which make up 78.13% of the bank’s capital. Dr. Wael Armouti, the Companies’ Controller had also attended the meeting.
During the meeting, all articles on the agenda of both the ordinary and extraordinary general assembly meetings were endorsed.
Mr. Sabih Masri, Chairman of Arab Bank’s Board of Directors, said: “Arab Bank’s general assembly meeting is held this year amid the unprecedented circumstances that the Kingdom and the entire world are facing in light of the COVID-19 pandemic. Efforts are being exerted across various levels to deal with this global crisis and to alleviate its health, economic and social repercussions.”
Commenting on Arab Bank’s performance, Mr. Masri stated that Arab Bank Group achieved a solid performance during 2019 despite the challenging circumstances in the region. The Group reported net income after tax of $846.5 million as compared to $820.5 million in 2018, recording a growth of 3.2%. Net income before tax grew to reach $ 1.15 billion as compared to $ 1.12 billion in 2018.
Revenues grew by 4.6% to reach $ 2.2 billion, and these have been generated broadly from both the local and international network, with the latter comprising close to 70% of total revenues. Net operating income increased to $ 1.3 billion, driven by the growth in interest and commission of the bank’s major operations and total expenses recorded a decrease of 3% from 2018.
Credit facilities grew by 1.2 % to reach $ 26.1 billion compared to $ 25.8 billion as of December 31st, 2018, while customer deposits increased by 6% to reach $36.2 billion. The Group also managed to further grow its equity by 5% during the year to reach over $ 9 billion despite the exceptional distribution of 45% cash dividend for the year 2018, following the dismissal of the legal case. Group equity grew with a return on equity of 9.3%.
Arab Bank’s solid results were driven by sustainable growth in the underlying business and by well controlled expenses. The bank maintains a well funded balance sheet, strong liquidity and robust capital position and enjoys strong, prudent and healthy fundamental financial metrics. The Group’s loan-to-deposit ratio stood at 72.1 % while the capital adequacy ratio calculated in accordance with Basel III regulations is at 16.2 % in December 2019. Asset quality of the Group remains high and credit provisions held against non-performing loans continue to be above 100%.
Mr. Masri stated that the bank’s solid performance demonstrates its success in dealing with the challenging circumstances through its prudent operating policies, broad network across the region and well- diversified sources of income. Mr. Masri further stated that the bank is currently evaluating the financial and economic implications of COVID-19 crisis in order to combat and contain its repercussions.
It is worth mentioning that the distribution of dividends for the 2019 fiscal year was postponed in accordance with the circular no. 1/1/4693 issued on April 9th, 2020 by H.E. the Governor of the Central Bank of Jordan to all banks operating in the Kingdom.
Arab Bank was named “Best Bank in the Middle East for 2020” by Global Finance, New York for the fifth consecutive year. The Bank was also named “The Middle East’s Best Bank 2019” by Euromoney – London.
