Jordanian’s Amman based largest lending financial institution and an active trading institution Arab Bank has crashed on a humongous advantage of around 35 percent for the year-end reports in the year 2018. As quoted in the Bank report “It was the first instance in the region when a financial lender has grossed such huge net profit and breached a whopping $820.5 million operating total Net Income for the whole financial year 2018. This bettered the previous total net operating income of $533 million posted by the bank in 2017.”
It’s quite amazing that when other financial institutions are bracing up the heat of economic slowdown, the Arab Bank has bettered its previous performance by a considerable margin. Pondering the critical performance factors that have driven such enormous profits for the bank in the year 2018 are: –
• Surging and systematic growth in the business.
• Drop down and great control in overall business expenses as well the business consumption.
• A massive surge in the global equity market share which has touched $8.7 Billion for the year as well return on equity share market has surged to 9.5 percent.
• It also saw a whopping surge in customer deposits which stood at $34.3 billion amidst rising oil and natural gas crisis, insolvency issues amongst other financial institutions, surging bank debts, etc.
• Overall loan facility has also surged by 3 percent every year to be at $25.8 billion, a rare feat to be achieved in a decade.
• It has also surged ahead in various other key performance markers like loan-to-deposit ratio and capital adequacy ratio which have seen a tremendous rise and touched 75 percent and 15.6 percent for the latter in 2018.
• The Bank has also capitalized on its high Asset quality rate bolstered in turn by 100 percentage credit-based provisions against non-performing instruments. It, however, excludes collaterals on property-based transactions.
• As per the words quoted by an elated Sabih Masri, Arab Bank Group chairman “This ongoing successful performance attributes to their progressive operating policies, strategically customer satisfaction designed instruments, proven systematic driven past performances, etc to support the institution to overcome most dynamic and hard economic environment.
With this achievement, the Board of directors at the Bank have announced a cash dividend of 45 percent although it’s still kept in the loop, it will soon be officiated. The bank also successfully solved two of its most troublesome issues and thereby converted a whopping $325 million of provisional instruments into a source of income. It also saw a massive surge in customer deposits which stood at $34.3 billion.
However, amongst all this productive status, the overall GDP growth of the region is in declining phase and suffers highly from rising crude oil, depleting natural resources, heavy loan and other financial instruments rates, rising debts, unemployment etc as quoted from key sources of Moody Investor service firm who are also financial board of advisors to Government of Jordan.
Hence UAE, Saudi Arab, Muscat, Kuwait have chipped in to pledge $2.5 billion to bail out Jordanian economy of the impending economic crisis and fallout.
Thus Amman based Arab Bank, and few other profitable financial lenders have now to chip in quickly to revive the otherwise weak Jordanian economy.
