DUBAI, UNITED ARAB EMIRATES: Arab Bank Group reported net income after tax for the first quarter of 2022 of $166 million as compared to $128.3 million for the prior period, recording an increase of 29.4%.
The Group loan portfolio grew by 5% to reach $35.2 billion as of March 31, 2022 compared to $33.5 billion for the same period last year, while customer deposits grew by 3% to reach $47.3 billion compared to $45.8 billion for the same period last year. The increase in loans and deposits in most areas of operations are in line with the Bank's sustainable growth strategy to expand and diversify its clients and deposit base. The Group maintained its strong capital base with a total equity of $10.2 billion.
Mr. Sabih Masri, Chairman of the Board of Directors, stated that the results achieved by the Bank in the first quarter of this year, reflect the Bank's strong financial position and its ability to deliver sustainable performance, while prudently managing the regional and global developments.
Miss Randa Sadik, Chief Executive Officer, stated that the underlying performance of the Group continues on its growth path with first quarter results driven by an increase in core banking income and a lower cost of risk, highlighting that the Bank's net interest and commission income increased by 6.3% compared to prior period, despite ongoing market volatilities.
Miss Sadik commented that Arab Bank Group enjoys strong liquidity in the form of a granular deposit base and strong capitalization where loan-to-deposit ratio stood at 74.3%, and the capital adequacy ratio is at 16.5% in accordance with Basel III regulations. Miss Sadik also added that the asset quality of the Group remains high, with credit provisions held against non-performing loans continue to exceed 100%.
Mr. Masri concluded by expressing his confidence in the Group's ability to maintain its leading position and to capture new business opportunities to deliver sustainable profitable growth.