Arab Bank Group delivered strong financial performance in the first nine months of this year, reporting net income after tax of $630.3 million compared to $405.8 million for the same period last year with an increase of 55%.

The Group maintained its strong capital base with a total equity of $10.8 billion. Loans grew to $36.3 billion and deposits reached $49 billion. Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 4% & 5%, respectively.

Mr. Sabih Masri, Chairman of the Board of Directors, stated that the results underscore the bank’s success in pursuing its growth strategy, despite the challenging environment.

Ms. Randa Sadik, Chief Executive Officer, stated that the bank succeeded in delivering continued growth through its operating entities and across different segments. This is inline with the bank’s objective to achieve sustainable results across all business lines. Ms. Sadik added that the Group continues to benefit from the diversified business model and its prudent risk strategy with key indicators remaining strong where loan-to-deposit ratio stood at 74%, and credit provisions held against non-performing loans continue to exceed 100%, and capital adequacy ratio of 16.9%.

It is worth noting that Arab Bank announced recently the successful issuance of its $250 million in Additional Tier 1 (AT1) Capital Securities with a fixed coupon of 8%. The issuance was through a private placement and was listed on the International Securities Market (ISM) and the Sustainable Bond Market of the London Stock Exchange. The bond’s proceeds will be used to finance a portfolio of qualified sustainable projects.

Arab Bank announced the successful issuance of USD 250 million in Additional Tier 1 (AT1) Capital Securities. The milestone marks the first sustainable perpetual AT1 issue in Jordan.

The bond, which was issued through a private placement, is listed on the International Securities Market (ISM) and the Sustainable Bond Market of the London Stock Exchange. The bond, which offers investors an interest rate of 8%, attracted a diverse group of investors, including large institutional and individual investors from Jordan and several other countries where Arab Bank operates.

The issuance is intended to further strengthen the bank’s capital base and diversify its sources of funding, to support its future plans for regional growth and expansion.

Arab Bank’s Chairman Sabih Masri expressed his gratitude towards investors and stated: "The overwhelming demand for this issuance, which exceeded the issue size, underscores the deep-rooted confidence that local and regional investors bestow upon Arab Bank.” He also extended his sincere thanks to the Central Bank of Jordan and Jordan Securities Commission for their instrumental support.

“We are proud to receive such a strong vote of confidence from investors in response to this significant issuance” commented Ms. Randa Sadik, Arab Bank’s CEO.  The proceeds of the issuance will be used to finance a portfolio of qualified sustainable projects, in line with Arab Bank’s strategy to integrate Environmental, Social and Governance (ESG) principles across the organisation.

"In the upcoming period, we anticipate further initiatives, which will further boost the bank’s performance across the various business sectors” Ms. Sadik added. “Our emphasis will remain on expanding into new markets, diversifying our revenue streams and continuing to provide comprehensive banking services and solutions, supported by integrated digital platforms and channels."

Arab Bank, headquartered in Amman Jordan, was established in 1930 and currently has one of the largest global Arab banking networks with over 600 branches spanning five continents and covering key financial markets and centres. Earlier this year, Arab Bank was named the “Best Bank in the Middle East for 2023” by Global Finance magazine for the eighth consecutive year.