Arab Bank, Jordan's biggest lender, reported a 20 per cent year-on-year jump in its first-half net profit amid a rise in operating income, as its chief executive announced his retirement by the end of this year.
Net profit after tax rose to $182.4 million in the first six months of the year, up from $152.1m during the same period in 2020, Arab Bank said in a statement on Saturday.
Despite the “negative economic consequences of the pandemic”, the bank's financial performance during the first half underscores its ability to operate in a challenging economic environment, with net operating income increasing 6 per cent to $579.8m, Nemeh Sabbagh, Arab Bank's chief executive, said.
Banks across the world have faced a tougher operating environment amid pandemic-driven headwinds that tipped the global economy into its worst recession since the 1930s. Historically low interest rates have also made it difficult to boost profits. However, the global economy has bounced back this year, easing pressure on lenders' profitability.
The half-yearly financial result underscores the “the strength of the bank’s diversified business model and the bank’s resilient performance in this challenging economic environment”, Sabih Masri, chairman of Arab Bank's board, said.
Arab Bank, which has more than 600 branches across five continents, grew its loan book by 27 per cent to $33.8 billion in the first half of the year, while its customer deposits rose 28 per cent to reach $46bn.
It attributed the growth in part to the consolidation of the financial statements of Oman Arab Bank under its accounts in the first quarter of 2021. The move “materially increased” customer deposits and loans by $7bn and $7.2bn respectively, it said.
The consolidation also increased total assets by $8.2bn to reach $63bn, compared with $51.6bn a year earlier. Oman Arab Bank has also recently finalised the acquisition of Al Izz Islamic Bank, an Islamic lender in Oman, to strengthen its presence in the sultanate.
Arab Bank said its loans-to-deposit ratio reached 73.5 per cent with equity of $10.3bn and a capital adequacy ratio of 16.7 per cent. Its credit provisions against non-performing loans remained in excess of 100 per cent.
Mr Sabbagh, who has led the bank as chief executive for the past 12 years, informed the board on July 29 about his intention to retire at the end of this year, the lender said.
He has recommended Arab Bank's deputy chief executive Randa Sadik, a position she has held since 2010, to be become his successor, according to the statement.
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A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
Miss Granny
Director: Joyce Bernal
Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa
3/5
(Tagalog with Eng/Ar subtitles)
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
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Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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