Arab Bank Group: Record USD 1 Billion Profit - 40% Dividend

Arab Bank Group has reported remarkable results for the financial year ending December 31, 2024, posting a record net profit of $1 billion. This reflects an impressive 21% increase in net income after tax, reaching $1,007.1 million, compared to $829.6 million in 2023. In light of these strong results, the Board of Directors has recommended a cash dividend distribution of 40% to shareholders.

Growth Across Business Segments

The robust performance was driven by growth in multiple business areas and regional markets. Operating profit saw a 7% increase, totalling approximately $2 billion. When adjusted for constant currency, total assets rose by 6%, reaching $71.2 billion, loans grew by 6% to $38.3 billion, and customer deposits climbed by 5%, amounting to $52.2 billion.

Solid Equity Position

The Group’s equity position remains robust, closing the year at $12.1 billion. This highlights the Arab Bank's ongoing financial stability and resilience in the face of changing market conditions.

Strategic Vision and Future Outlook

Mr. Sabih Masri, Chairman of Arab Bank, attributed the Group's success in 2024 to its effective strategy and resilient business model. He emphasized that the record net operating profit is a clear indication of the bank's growth momentum, particularly in the GCC and international markets. Additionally, Mr. Masri highlighted the continued implementation of the Group's ESG strategy, which integrates environmental, social, and governance principles across various operations.

Expanding Regional Presence

Looking ahead, Mr. Masri shared exciting developments, including the recent grant of a banking license for Arab Bank Iraq. The subsidiary is set to commence operations in early 2025, marking an important expansion into the Republic of Iraq. Furthermore, the bank is focused on enhancing its wealth management and private banking services, with plans to merge Gonet, part of Arab Bank Switzerland, with Swiss ONE Bank.

Diversified Growth Strategy

Ms. Randa Sadik, CEO of Arab Bank, noted that the Group's 2024 success is a result of diversified growth in core banking income across different segments and markets. This sustainable growth was driven by both interest and non-interest income, bolstered by effective revenue diversification, increased lending, and strong liquidity and funding management, particularly in the GCC and international markets.

Ms. Sadik further emphasized that the Group's liquidity and asset quality remained solid. The loan-to-deposit ratio stood at 73%, with credit provisions for non-performing loans surpassing 100%. Arab Bank maintains a strong capital base, with common equity forming the majority of its capital, resulting in a capital adequacy ratio of 17.2%.

Embracing Digital Transformation

Arab Bank is also advancing its digital transformation strategy, with a focus on improving operational efficiency through the use of digital technologies and AI. The bank’s digital services continue to evolve to meet the financial needs of its customers. As part of this initiative, the bank’s fintech arm, ACABES, launched OMNIFY, a cutting-edge digital banking solutions platform that allows companies to offer banking and financial services to their clients.

Industry Recognition

For the second consecutive year, Arab Bank was named “Bank of the Year 2024 in the Middle East” by The Banker magazine, based in London. Additionally, the bank received the “Best Bank in the Middle East Award for 2024” from Global Finance, based in New York, marking the ninth consecutive year it has received this honour. These accolades, along with several other prestigious awards, reflect the Group's excellence in the banking sector.

The Group’s 2024 financial statements are currently awaiting approval from the Central Bank of Jordan.