Arab Bank Group Financial Summary
Loan quality
Highlights
1.50
1.38
•
Arab Bank classifies the loan portfolio in compliance with
IFRS requirements and the Bank's stringent guidelines,
whichever is stricter.
NPLs include old loans which are fully provided. The Bank
is very cautious in writing off loans to safeguard its legal
position for collection.
The credit portfolio's quality remains strong despite regional
conditions.
As of December, 2016, the NPL coverage ratio stood at
116%, in line with the Bank's prudent provisioning policy.
73% of the Bank's loan book is composed of corporate
clients, which is well-diversified across economic sectors
and regions.
Consumer loans represent 22% of the loan portfolio, and
the amount of 90 days overdue represents only 1.6% of the
consumer loan portfolio.
2012
Gov.
5%
Consumer
22%
1.31
1.30
1.28
1.28
1.21
1.21
1.13
1.12
116%
109%
106%
102%
92%
Provision
(USD Billions)
2013
2014
2015
2016
NPL-Excluding Int. in Suspense
(USD Billions)
Banks & Fl
0%
Coverage Ratio
GCC
31%
Jordan
27%
Far East
and
Other
Corporate
73%
North
MENA
10%
6%
Africa Europe
16%
10%
•
Loans as of December 31, 2016
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