Arab Bank Group achieves record net profit of USD 1 Billion for 2024, 40% cash dividends

Arab Bank Group achieved strong results for the financial year ending December 31, 2024, with a record net profit of USD 1 billion, reflecting a robust 21% growth in net income after tax, amounting to USD 1,007.1 million compared to USD 829.6 million in 2023. Based on this record performance, the Board of Directors has recommended to the shareholders the distribution of 40% cash dividends.

The impressive results were driven by growth across various business segments and geographic markets. Operating profit increased by 7% to reach approximately USD 2 billion. At constant currency, total assets grew by 6% to USD 71.2 billion, loans increased by 6% to USD 38.3 billion, and customer deposits rose by 5% to USD 52.2 billion.

The Group’s equity position also remained strong, standing at USD 12.1 billion at year-end, further underscoring its financial stability and resilience.

Mr. Sabih Masri, Chairman of Arab Bank, commented that the outstanding results achieved by the Group during the year 2024 reflect its successful execution of its strategy, delivered by its resilient business model. He also noted that the bank’s record net operating profit is a clear testament to its strong growth momentum across several markets, specially in the GCC region and international markets. Mr. Masri stated that the bank continued to implement its ESG strategy, embedding environmental, social and governance components within its operations across various areas.

Regarding the Group’s expansion and growth strategy, Mr. Masri mentioned that the bank was recently granted final banking license to operate in the Republic of Iraq through its subsidiary, Arab Bank Iraq; which will commence operations at the beginning of 2025. Mr. Masri also underscored the Group’s constant focus on enhancing wealth management and private banking services highlighting the expected merger between Gonet – part of Arab Bank Switzerland – with Swiss ONE Bank.

Ms. Randa Sadik, Chief Executive Officer, stated that Arab Bank delivered strong results during the year 2024, driven by well diversified growth in core banking income across several segments and markets. The Group achieved sustainable growth in net operating profit driven by both interest and non-interest income contribution as a result of revenue diversification, growth in lending and efficient management of liquidity and funding sources, benefiting from its presence in the GCC and international markets.

Ms. Sadik added that the Group’s liquidity and asset quality remain solid where loan-to-deposit ratio stood at 73% and credit provisions held against non-performing loans continue to exceed 100%. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 17.2%

Regarding the Group’s digital transformation strategy, Ms. Sadik stressed that the Group is focused on enhancing operational efficiency by deploying digital technologies and artificial intelligence tools within an institutional framework across all business units, while continuing to implement its digital strategy to provide digital banking services that meet the aspirations and financial needs of its customers. As part of Arab Bank Group’s digital transformation growth strategy, ACABES, the bank’s Financial Technology and development arm, recently launched OMNIFY, an advanced digital banking solutions platform (Banking-as-a-Service) that enables companies to provide banking services and financial solutions to their customers.

Arab Bank was named “Bank of the Year 2024 in the Middle East” by the London-based “The Banker” Magazine for the second consecutive year. The bank has also received the “Best Bank in the Middle East Award for 2024” from New York-based Global Finance publication, for the ninth consecutive year. This is in addition to receiving several significant recognitions and awards from various reputed international and regional parties.