Arab Bank Group reports net profits of $195.3 million for 2020 12% cash dividends – Venture Magazine

Arab Bank Group reports net profits of $195.3 million for 2020 12% cash dividends – Venture Magazine

Arab Bank Group closed 2020 reporting net income after tax of $195.3 million as compared to $846.5 million in 2019, recording a drop of 77%. Group equity grew to reach $9.4 billion.

The Board of Directors has recommended to the shareholders the distribution of 12% cash dividends for the financial year 2020.

The year 2020 was challenging for the global and regional banking sectors due to economic contraction, higher cost of risk, and lower interest rates in addition to the plunge in oil prices since the outbreak of the pandemic. The Bank entered the crisis from a position of strength, with stable credit quality coupled with sound liquidity and capital ratios. The drop in profits is attributable to the build up of higher provisions, driven by the deterioration of the macro-economic environment regionally and globally, and to lower revenues from interest and fee income due to the Covid-19 pandemic and to lower market interest rates and weakening oil prices.

Group net operating income is at $ 1,007 million, 25% lower than the prior period as a result of a decrease in net interest and commission income, and the drop in the contribution of the bank's associates in the Gulf.  Customer deposits grew by