Arab Bank Group's Q1 2025 Profits Rise 7% to $271 Million

Arab Bank Group has posted impressive financial results for the first quarter of 2025, achieving a 7% increase in net income after tax, which reached $271 million. This marks a solid performance compared to the $252.8 million reported during the same period last year. The bank's strong capital position is reflected in its total equity of $12.1 billion, which reinforces its financial stability.

Asset Growth and Strong Financial Performance

The Group experienced notable growth in key financial metrics, with total assets increasing by 6% to $72.7 billion. Loans grew by 5%, reaching $39.1 billion, while deposits surged by 7%, totalling $53.2 billion. These figures demonstrate the bank's ability to expand despite challenges in the broader economic landscape.

Chairman's Insights on Resilient Performance

Mr. Sabih Masri, Chairman of the Board of Directors, commented on the Group's strong performance despite the prevailing global economic conditions and geopolitical uncertainties. He attributed the positive results to Arab Bank's diversified and flexible business model, which is supported by its extensive regional presence, especially in the GCC region. Mr. Masri emphasized the importance of the bank’s solid capital position, high-quality assets, strong liquidity, and careful risk management practices in maintaining its efficient operational model. He expressed confidence in the bank's ability to continue generating sustainable returns for its shareholders, driven by its strategic vision and well-coordinated institutional approach.

CEO’s Perspective on Business Resilience and Revenue Growth

Ms. Randa Sadik, Chief Executive Officer of Arab Bank, highlighted the Group’s resilience in delivering robust results during the first quarter of 2025. She attributed this success to the bank’s consistent performance and the strength of its balance sheet. The bank’s revenue grew by 4%, fuelled by steady business expansion.

Liquidity and Asset Quality Remain Strong

Ms. Sadik further emphasized the Group's strong liquidity and excellent asset quality. The loan-to-deposit ratio stood at 74%, with credit provisions for non-performing loans surpassing 100%. The bank also maintains a solid capital base, primarily composed of common equity, with a capital adequacy ratio of 17.2%.

Commitment to Digital Innovation

The CEO also praised the Group’s ongoing digital transformation initiatives, aimed at enhancing customer experience and delivering long-term value to shareholders. These efforts highlight Arab Bank's commitment to maintaining a leadership position in digital innovation within the financial services industry.

New Brand Identity Reflects Future Vision

In addition to its financial achievements, Arab Bank recently unveiled a refreshed brand identity, marking a significant step in its evolution. This rebranding reflects the bank's long-standing legacy and its ambitious vision to continue being a leading financial institution in the MENA region. It underscores Arab Bank’s dedication to empowering its customers and communities to achieve their aspirations.