Abdel Hamid Shoman: We focused on managing our balance sheet and maintaining our high and comfortable levels of liquidity

Arab Bank Group’s net pretax and after provisions income amounted to $782.8 million during the year 2009, while operational revenues amounted to $1,774.2 million compared with $1,866.6 million for the year ended 31 December 2008. Arab Bank Group 2009 balance sheet showed increase in deposits, equity and liquidity.

According to Arab Bank Group's financial statements for the year ended 31/12/2009, assets grew by 11% to reach $50.6 billion, compared with $45.6 billion at the end of 2008. Meanwhile, customer deposits remained the key funding source, rising by 11% to reach $34.9 billion, compared with $31.4 billion at the end of last year and accounting for 69% of the Bank’s total assets. Total bank deposits increased by 19% to $6.3 billion compared with $5.3 billion at the end of last year, reflecting the increasing confidence in Arab Bank and its Group entities in the different countries where it operates. Cash and due from banks grew by 28%, from $12.7 billion at the end of 2008 to $16.2 billion at the end of this year, resulting in further increasing the liquidity ratio which includes cash and quasi cash, reaching 49% of total assets, with loans to deposits standing at a very comfortable ratio of 63%.

Mr. Abdel Hamid Shoman, Executive Chairman of Arab Bank, commented that the shareholders’ equity rose by 8% to $8.1 billion, compared with $7.5 billion at the end of 2008, constituting 16% of total assets, underlining further the bank's strong capital base and strengthening further the capital adequacy ratio to reach 17.9%, thus exceeding the requirements of both Basel II of 8% and the Central Bank of Jordan of 12%.

Shoman stated that the bank's profits were generated from the core income streams of the bank, locally and overseas, highlighting that the drop in net profit compared to last year is primarily due to the Bank’s prudent policies based on which, the group has booked additional provisions of $204 million against non-performing and watch list credits. He also noted the booking of a non-recurring gain of $37 million in 2008 as a result of selling the bank's branches in Cyprus.

Shoman added that in recognition of the bank's conservative risk policies, asset quality, franchise value, strong capitalization and liquidity, Moody's has reaffirmed the bank’s A3 rating and “stable outlook”, whilst Standard & Poor's reaffirmed the bank’s A- rating.

Meanwhile, the Board of Directors of Arab Bank recommended to the General Assembly, which will meet on Friday 26 March 2010, to endorse the distribution of cash dividends to shareholders at (20%) of the share's nominal value, equivalent to (JD 106.8 million).