The net profits of Arab Bank, the largest of Jordan's banks, decreased by 66% to reach $ 152.1 million during the first half of the year, while allocating more money to meet the repercussions of the Corona pandemic. .
According to Reuters, Naama Sabbagh, the bank's chief executive, did not mention a number for these allocations, but said that the bank decided to allocate a greater amount of money to cover the deterioration in the overall economic environment at the regional level. And the world.
He said that these provisions will also cover the bank’s operations in Lebanon, where the economy is facing a crisis.
The bank, which is among the major financial institutions in the Middle East, also said on Saturday that total loans rose two percent to $ 26.7 billion at the end of June, while Deposits increased five percent to $ 35.9 billion.
He added that lowering interest rates and falling oil prices had an impact on revenues.
Although the consequences of the pandemic are unprecedented, the bank helped diversify its presence in many markets.
The Arab Bank operates in 30 countries on five continents and owns 40 percent of the Arab National Bank in Saudi Arabia.
Bankers say that about seventy percent of the bank's revenues come from its global operations, including its share in the Arab National Bank in Saudi Arabia.
Sabbagh said that liquidity remained high with the ratio of loans to deposits recording 74.4 percent by the end of June. The bank's non-performing loan coverage rate continued to exceed over 100 percent.
The Arab Bank is based in Amman, but most of its assets and deposits are outside Jordan and has built a reputation for stability amid political turmoil in the region.
Sabbagh said that the bank's revenues were also affected by the decline in profits in the Arab National Bank, which was affected by the decline in oil prices since the start of the pandemic.
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