Dubai PR Network, Online Press Release from Dubai and Middle East
 
Banking & Insurance(Banking & Investments)
Filter PR by
  
Arab Bank Group Reports Nine Months 2020 Net Profit of $215.2 Million
 

United Arab Emirates, 26 October 2020:  Arab Bank Group reported net income after tax of $ 215.2 million for the nine months of 2020 as compared to $668.9 million for the prior period, recording a drop of 68%.  
 
The fall in the profits is attributable to the build up of higher provisions, driven by current and forecasted economic conditions, and reflects the deterioration in the macro-economic environment in the region and globally, and to lower revenues from interest and fee income because of the impact of the Covid-19 outbreak and lower market interest rates and weakening oil prices.     
 
Group net operating income is at $ 808 million, recording a drop of 22% from prior period as a result of a decrease in net interest and commission income, in addition to a drop in the profits of the bank’s associates in the Gulf.  Customer deposits grew by 8% to reach $ 37.5 billion as compared to $ 34.7 billion, while loans grew by 2% to reach $26.7 billion as compared $ 26.1 billion. The Group maintained its strong and robust capital base with equity of $9.3 billion and with a capital adequacy ratio of 16.7% calculated in accordance with Basel III regulations. The Group enjoys high liquidity with a loan-to-deposit ratio of 71.1%, while credit provisions held against non-performing loans continue to exceed 100%. 
 
Mr. Sabih Masri, Chairman of the Board of Directors remarked that the pandemic has had, and continues to have, a significant impact on businesses around the world. 
 
Mr. Sabbagh, Chief Executive Officer, stated that the global and regional banking sectors will continue to face challenges because of the economic contraction, the higher cost of risk, and lower interest rates. He added that growth in the GCC countries has also declined sharply due to the plunge in oil prices.  
 
Mr. Sabbagh highlighted that the increased provisions booked across the Group are in accordance with the guidelines of International Financial Reporting Standard # 9, and as per the bank’s internal expected credit loss model, and include general provisions built due to the current economic situation in Lebanon.  
 
Mr. Masri concluded by stating that the pandemic has negatively affected the performance of banks throughout the region and globally and affirmed that Arab Bank Group will continue to maintain its strong and resilient financial position. 

 


Posted by : Dubai PR Network Editorial Team
Viewed 8058 times
PR Category : Banking & Investments
Posted on : Tuesday, October 27, 2020  10:04:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : AED 1,000,000 in cash and more prizes with Al Ansari Exchang...
Next Story : Tightening Supply Keeps Grain Sector Supported
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Pandora Introduces New Limited-Edition Charm in Support of Unicef [9196-Views]
Wash Day Essentials: The Only Collection You'll Need for Perfect Curls [6847-Views]
New Program for Saudi Arabia Healthcare Professionals Targets Healthcare Management in Qat... [5371-Views]
TCS Saudi Arabia Wins World Leadership Congress Award [4781-Views]
Ixora Organic Beauty Continues Its Fight for Health With Its Latest Breast Cancer Awarenes... [4494-Views]
Malabar Gold & Diamonds Signs Up Superstar Karthi as Brand Ambassador in Tamil Nadu [4125-Views]
Oblique Creations Showcases the A/W 21 Collection in Dubai [3973-Views]
KENZO Sport Collection [3477-Views]
Toric Hemispheres Retrograde Steel Blue The Distinguished Traveler [3477-Views]
Ministry of Health to Showcase State-of-the-Art Digital Health Services at GITEX Technolog... [3460-Views]
Expo 2020 Opens a New Era for Dubai's Tourism Industry [3428-Views]
International Protein (UAE), Anda Burada (Turkey) & Shadana Yoga and SunBox from Palestine... [3378-Views]
Rashed Clinches Third World F2 Crown With Victory in Portugal [3264-Views]
Story of Hope: UAE Resident Shares the Importance of Early Detection this Breast Cancer Aw... [3259-Views]
QNET Supports Community Activity to Raise Funds for Indus Hospital in Pakistan [3247-Views]
Award-Winning Director Joe Wright Partners with Samsung to Unveil a New Film Captured on G... [3194-Views]
Dubai Municipality Celebrates World Food Day [3075-Views]
Tribal Thumka Is Back With a New Flair! [3067-Views]
du Set to Showcase Solutions that will Empower UAE Government Entities at GITEX Technology... [3001-Views]
Gift of Gold - Get Guaranteed Gold Coins with Malabar Gold & Diamonds [2919-Views]
QS Arab Region Rankings 2022: Abu Dhabi University Ranks Among the Top 21% of Educational ... [2882-Views]
Food Waste takes the stage to mark World Food Day at EXPO 2020 [2829-Views]
Union Coop ‘Humanitarian Support Program': Employees Contribute AED 1,344,000 since 2018 [2788-Views]
Dubai Culture and Letswork Collaborate to Provide Creative Spaces in Dubai [2743-Views]
UAE Government Leaders, African Ministers and MIT Expert Share Insights on Day 1 of GITEX ... [2690-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories