Arab Bank’s General Assembly Meeting. 25% Distribution of Dividends for 2011
29 Mar, 2012
Arab Bank held its ordinary and extraordinary general assembly meetings on March 28, 2012. The meetings were chaired by the Chairman, Mr. Abdel Hamid Shoman and were attended by the Bank’s board members and shareholders (shareholders in attendance and by proxy) which make up 72.352 % of the capital base. A representative was in attendance from the Companies Control Department and officially declared the meeting in session.
Mr. Abdel Hamid Shoman, Chairman of Arab Bank commenced the session by stating that the repercussions of the global financial crisis deepened and its effects dramatically unfolded in 2011. Mr. Shoman also added that the effects of the global downturn and its consequences threatened most of the world’s economies. This crisis also had an impact on the Arab world, and still does to this day, foreshadowing further challenges to come.
Mr. Shoman further elaborated that Arab Bank’s sound strategy which is based on the fundamentals of proper banking practices coupled with its conservative policies in lending, investments, funds deployment in addition to maintaining high liquidity and the Bank’s flexibility in dealing with these challenges were amongst the strength points that allowed the Bank to continue its distinguished performance and reinforced its financial results.
Mr. Shoman added that the Bank also continued to improve its processes and procedures for managing and measuring risk, developing its lending and investment policies, improving its credit assessment methods and maintaining a quality portfolio by continuing to set aside provisions at rates exceeding the Central Bank of Jordan’s requirements and other regulatory authorities. The Bank has also increased the provisions coverage ratio of non performing loans to reach more than 100%, excluding the value of collaterals, in case of unfavorable future economic developments.
Arab Bank Group’s net profit after tax amounted to USD 305.9 million at the end of 2011 as compared to USD 270.8 million at the end of 2010 recording a growth of 13%. On the other hand, the Group grew its deposits by more than USD 1 billion to reach USD 31.7 billion, thereby boosting liquidity, which has always been a top priority for Arab Bank’s strategic goals. The growth in deposits during these turbulent times reflects the high level of confidence from customers who view the Bank as a safe haven for their deposits and investments.
The Bank’s financial results reflected the strength of its capital base, which has reached USD 7.7 billion at the end of 2011. The capital adequacy ratio has reached 15.1%, far exceeding and almost double the 8% minimum required by the Basel Committee and higher than the minimum required by the Central Bank of Jordan of 12%.