Arab Bank Group Financial Overview slide image

Arab Bank Group Financial Overview

Key Financial Highlights 2023: Performance was driven by underlying loans growth and higher core banking income $mm 2022 2023 YOY% 35,440 37,080 4.6% Deposits 47,749 50,624 6.0% Operating Income 2,526 3,150 24.7% Net Interest Income 1,585 2,037 28.5% Non-Interest Income 557 603 8.3% Affiliates Income 384 510 32.6% Operating Expense 1,176 1,331 13.2% Net Operating Income 1,350 1,819 34.7% ECL Provision and Impairment 499 602 20.7% Net Income Before Tax 851 1,217 43.0% Income Tax 307 388 26.2% Net Income After Tax 544 830 52.4% • For the third consecutive year, AB Group delivered double digit growth in profitability through its diligent strategy execution. In 2023, AB Group's net income after tax reached $829.6mm a 52% growth from the $544.3mm achieved in 2022. The Group's performance was driven by sustainable growth in its underlying business across various sectors and markets, with a clear focus on enhancing non-interest income contribution and revenue diversification. Net operating income improved by 35% to reach $1.82bn. This was achieved while the Bank continued to invest in transformation and maintaining a resilient balance sheet, which will position it for further growth in the future. The Bank's record net operating income is also a clear testament to its strong growth momentum across several markets, especially in the GCC region and international markets. Total Assets grew by 6% to reach $68.3bn; loans grew by 5% to reach $37.1 bn, and deposits grew by 6% to reach $50.6bn. This achievement highlights the Bank's ability to withstand adverse challenges in the operating environment while continuing to deliver on its growth strategy. Arab Bank Group maintained a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.5%. In 2023, Arab Bank successfully issued $250mm in sustainable Additional Tier 1 Capital Securities, which marks the first and largest sustainable perpetual AT1 issuance in Jordan. Loans البنك العربي ARAB BANK 26 26
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