Ramallah – the world of the homeland
Arab Bank Group net profits after taxes and provisions amounted to $ 215.2 million for the period ending September 30, 2020, compared to $ 668.9 million in the corresponding period for the year 2019, a decrease of 68%.Whereas, the profits of the Arab Bank Group were negatively affected during the first nine months of the year 2020 as a result of the additional allocations that the bank monitored as a precaution to face the economic downturn and the state of uncertainty in the region and the world, in addition to the decrease in income from interest and commissions due to the decrease in interest rates globally, the decline in oil prices and the slowdown Global trade movement as a result of the closures that the countries of the world witnessed due to the outbreak of the Corona virus.
The bank’s net operating profit amounted to $ 808 million, down 22% from the same period of the previous year, due to the decrease in net interest as well as the decrease in net commissions, in addition to the decrease in the profits of the bank’s affiliates, and customer deposits grew by 8% to reach $ 37.5 billion compared to With $ 34.7 billion for the same period of the previous year, while credit facilities amounted to $ 26.7 billion as on September 30, 2020, compared to $ 26.1 billion for the same period of the previous year, with a growth rate of 2%. The bank maintained a solid capital base, reaching Total equity of $ 9.3 billion, and the capital adequacy ratio reached 16.7% at the end of the nine months of the year 2020, in addition to the bank’s maintenance of comfortable liquidity ratios, where the ratio of loans to deposits reached 71.1%, while the non-performing loan coverage ratio exceeded 100%.
Chairman of the Board of Directors, Mr. Sabih Al-Masry said: “The global economy incurred great losses as a result of the outbreak of the Coronavirus, which imposed additional burdens on all economic sectors, in addition to a decrease in the growth rate and high unemployment rates.”
For his part, Mr. Nehme Sabbagh – Executive General Manager of the Arab Bank – explained that the Arab Bank Group was affected by the outbreak of the Corona virus, which also coincided with the decrease in global interest rates and the decline in oil prices. Credit facilities and high liquidity ratios in light of negative future expectations for global economic growth.
Mr. Sabbagh added that the Arab Bank has a strong capital base and that the additional allocations have been allocated based on the International Financial Reporting Standard No. 9 and according to the expected credit loss model used by the bank, in addition to general provisions that the bank has built as a result of the current economic conditions in Lebanon.
In conclusion, Mr. Subaih Al-Masry assured that despite the negative effects of this epidemic, he is confident in the bank’s ability to contain the impact of this economic crisis, praising the success of the bank’s diversified business model locally and regionally.