Arab Bank extended its support to the Nephrology Center at An-Najah National University Hospital, which was established recently as the first and only specialized center in Nablus for kidney disease treatment, including transplant, dialysis and follow-up care.

This support comes as part of Arab Bank’s social responsibility program “Together”, and in response to the patients’ urgent and persistent need for kidney dialysis. The bank’s support entails fully equipping the center’s treatment hall, including all medical supplies and machines, as well as 20 beds that house an average of 40 patients a day.

An-Najah National University Hospital’s management expressed gratitude for the bank’s support, which will contribute to the completion of this significant national project that is set to alleviate the suffering of over 470 patients through receiving the necessary treatment on time.

For his part, Country Manager at Arab Bank – Palestine, Mr. Jamal Hurani, reaffirmed that Arab Bank, through its continued support for the infrastructure and vital facilities of the health sector in Palestine, aims to contribute in upgrading the level of health and medical services provided to citizens. This initiative is in line with the bank’s social responsibility and its keenness to support national efforts to achieve sustainable development and provide basic healthcare services for a large segment of the society.

It is worth noting that “Together”, Arab Bank’s corporate social responsibility program, is a multi-faceted program that works on improving and developing different aspects of the community. Through a variety of initiatives and activities, the program aims to serve the community in health, poverty alleviation, environmental protection, education and orphan support.

Arab Bank has recently supported the Women’s Economic Empowerment project in collaboration with the Palestinian National Economic Empowerment Institution “Tamkeen” and “Fa’ed Ma Ladaykom” organization. The initiative aims at enabling women financially, being primary and active contributors to their household income, by providing them with decent livelihood opportunities. The bank’s support of this project comes as part of its social responsibility efforts directed towards poverty alleviation, achieving sustainable development, as well as enhancing social and economic stability across the community by enabling women and promoting their economic, social and cultural participation.

Through the project, 21 sewing machines were distributed to support 18 women-headed households in generating sustainable income that contributes to providing a decent life for them by being self-contained not dependents on financial aid.

The beneficiaries were selected through the Ministry of Social Development’s database for women-headed households with limited income, following a prudent assessment conducted by “Fa’ed Ma Ladaykom”, to evaluate the status and need of each family as well as its ability to implement and sustain the project.

On the empowerment and skills development front, “Tamkeen” will offer the needed training to all women beneficiaries aiming at developing their capabilities and labor market skills including project management, marketing, business development and more.

It is worth mentioning that Arab Bank has taken an active role in the community by adopting a comprehensive strategic approach and collaborating with several NGOs to achieve economic, social and environmental sustainable development. “Together”, Arab Bank’s corporate social responsibility program, is a multi-faceted program that works on improving and developing different aspects of the community. Through a variety of initiatives and activities, the program aims to serve the community in orphan support, health, poverty alleviation, environmental protection, and education.

As part of its social responsibility program “Together”, Arab Bank has recently provided sponsorship to one of SOS Children’s Villages’ homes, which helps orphaned children and provides them with the necessary familial support.

This initiative comes as part of Arab Bank’s constant efforts to support community initiatives aimed at providing a decent living for orphans and those who lost parental care. Through the agreement, Arab Bank will cover the children’s annual needs at SOS Villages, including education, clothing, food, as well as their daily and medical expenses.

Commenting on this initiative, Country Manager at Arab Bank – Palestine, Mr. Jamal Hurani said: “This support is in line with Arab Bank’s sustainability strategy, and part of the bank’s social responsibility program “Together” that supports various community initiatives aimed at  fostering  social solidarity and providing support to those in need.” Hurani added; “We value the humanitarian role that the association undertakes in providing holistic care and a decent life for orphans and those who lack parental care.”

For his part, National Director of SOS Children’s Villages, Mr. Mohammed Shalaldeh said: “We are proud to have Arab Bank as our strategic sponsor and we are pleased to see the impact of its support on the lives of our children.”

It is worth mentioning that Arab Bank adopts a comprehensive strategic approach in serving the community as part of its social responsibility to contribute to achieving sustainable economic and social development through a variety of activities and initiatives that positively impact vital areas including orphan support, health, poverty alleviation and environmental protection.

The SOS Children’s Villages – Palestine is a non-profit organization registered in Palestine as part of the global SOS Children’s Villages, which operates in over 136 countries and territories around the world to provide alternative care for children who lost their family or are at risk of losing it. This mission is carried out by providing children with nurturing homes within SOS Villages where they live with a loving Mother, brothers and sisters in a family atmosphere that enables them to develop their individual relationships and abilities, helps them lead independent lives and face the challenges of life in the future.

Arab Bank Group reported net income after tax of $271.7 million as compared to $215.2 million for the same period last year, recording a growth of 26%. Arab Bank consolidated the financial statements of Oman Arab Bank under its Group accounts increasing total assets by $8.4 billion to reach $63.7 billion compared to $52.5 billion for the same period last year.

Customer deposits grew by 24% to reach $46.6 billion, while loans grew by 28%, to reach $34.1 billion. The consolidation of Oman Arab Bank has materially increased customer deposits and loans by $7 billion and $7.5 billion, respectively.

Mr. Sabih Masri, Chairman of the Board of Directors remarked that the solid results demonstrate the bank’s strategic directive to maintain sustainable growth despite the challenging environment and highlighted that the bank continued focus on its digital transformation strategy.

Mr. Nemeh Sabbagh, Chief Executive Officer, commented that the Bank robust performance confirms its effectiveness in operating in a challenging economic environment with net operating income increasing by 6% to reach $856.9 Million. He added that the Group enjoys high liquidity and a strong capital base with a loan to deposit ratio of 73.1%, equity of $10.4 billion, and a capital adequacy ratio of 16.8%. The Group continues to hold credit provisions against non-performing loans in excess of 100%.

Mr. Sabbagh also noted that the bank has launched Reflect, the first Neobank in Jordan, which provides a branchless experience to millennials and facilitates their daily lifestyle activities from one banking app.

Mr. Masri highlighted Arab Bank's capacity to successfully overcome challenges and achieve strong results and stressed Arab Bank's commitment to its customers and shareholders.

As part of Arab Bank’s continuous efforts to support the education sector and the underprivileged students in particular, the bank continued its support to the “School Bags” initiative for the fourth consecutive year, in collaboration with the Ministry of Social Development.

Through the Ministry of Social Development and its directorates, 2,000 school bags including stationary were distributed across 7 governorates: Jerusalem, Yatta, Qalqilya, Tubas, Jenin, Jericho and Ramallah.

This initiative comes as part of Arab Bank’s social responsibility program, “Together”, a multi-faceted program that works on developing different aspect of the community in areas related to education, health, poverty alleviation, environmental protection and orphan support. The bank accordingly places great importance on supporting the education sector and underprivileged students by providing their basic school needs.

In addition to the “School Bags” initiative, Arab Bank’s cooperation with the Ministry of Social Development also entails a series of annual initiatives through which food parcels, winter blankets and other necessities are distributed to families in need

For the seventh consecutive year, Arab Bank and INJAZ Palestine renew the “Schools’ Renovation” agreement to renovate six public schools in the West Bank governorates.

The agreement was signed at INJAZ headquarters in Ramallah by Country Manager at Arab Bank – Palestine Mr. Jamal Hurani and Chairman of INJAZ Mr. Emad Hindi, in the presence of INJAZ Palestine General Manager Ms. Rania Kutteneh.

The “Schools’ Renovation” initiative is one of many educational initiatives that Arab Bank is implementing, in cooperation with INJAZ Palestine and the Ministry of Education, as part of Arab Bank’s social responsibility program “Together”. Over the past six years hundreds of students benefited from this initiative at 29 public schools.

The agreement entails providing infrastructure support and development for six additional schools, selected in five different governorates (Hebron, Qalqilya, Ramallah, Nablus and Salfit), through the maintenance and renovation of vital facilities. This is in addition to providing training workshops for students and faculty by Arab Bank employees, as well as entertainment activities relevant to the schools’ environment.

Commenting on this initiative, Mr. Jamal Hurani said: “Supporting this initiative for the seventh consecutive year comes as part of Arab Bank’s efforts to achieve sustainable development through its social responsibility program “Together”, considering the positive impact it made on a large number of students and teachers, as well as the quality of education and environment within the renovated schools.”

In turn, Mr. Emad Hindi praised the strategic cooperation with the Ministry of Education and Arab Bank in implementing this initiative which contributes in developing the education sector for the benefit of the local community, thus providing a healthy learning environment for students, and improve their overall academic performance.

He also noted that the “Schools’ Renovation” initiative is in line with the mission and vision of INJAZ to enhance future opportunities for the youth and prepare them to enter the labor market by acquiring the necessary entrepreneurial and leadership skills.

For her Part, Ms. Rania Kutteneh stressed on the importance of this initiative that is in line with the foundation’s vision to build and strengthen the youth’s capacity for economic development and provide a healthy environment for students that promotes a positive spirit, which will ultimately reflect on the learning process. Kutteneh also praised Arab Bank’s role in supporting the implementation of mutual and impactful initiatives and programs.

It is worth noting that the agreement is part of Arab Bank’s social responsibility program “Together” that aims to serve the community in areas related to health, poverty alleviation, environmental protection, education, and orphan support.

Arab Bank and The Ministry of Social Development have signed a cooperation agreement to distribute food parcels to 60 needy families as part of the bank’s corporate social responsibility and its continued efforts in supporting national initiatives aimed at helping the less fortunate in the society, especially in light of the COVID-19 crisis.

Through the agreement, the families will receive food parcels containing 19 food items that include all the basic nutritional elements which fulfill their monthly needs for an entire year as well as sanitizers. The parcels will be distributed in coordination with The Ministry of Social Development directorates in Tubas, Qalqilya and Yatta.

The Ministry of Social Development welcomed the cooperation with Arab Bank and praised the bank’s ongoing contributions to the community in order to alleviate the economic burdens on underprivileged families and assist them in providing their basic needs, especially in light of the COVID-19 pandemic and its economic repercussions on those in need.

The agreement comes as part of Arab Bank’s corporate social responsibility program “Together”, which is a multi-faceted program that works on improving and developing different aspects of the community through a variety of initiatives in health, poverty alleviation, environmental protection, education and orphan support.

Arab Bank Group closed 2020 reporting net income after tax of $195.3 million as compared to $846.5 million in 2019, recording a drop of 77%.  Group equity grew to reach $9.4 billion.

The Board of Directors has recommended to the shareholders the distribution of 12% cash dividends for the financial year 2020.

The year 2020 was challenging for the global and regional banking sectors due to economic contraction, higher cost of risk, and lower interest rates in addition to the plunge in oil prices since the outbreak of the pandemic.

The Bank entered the crisis from a position of strength, with stable credit quality coupled with sound liquidity and capital ratios. The drop in profits is attributable to the build up of higher provisions, driven by the deterioration of the macro-economic environment regionally and globally, and to lower revenues from interest and fee income due to the Covid-19 pandemic and to lower market interest rates and weakening oil prices.

Group net operating income is at $ 1,007 million, 25% lower than the prior period as a result of a decrease in net interest and commission income, and the drop in the contribution of the bank’s associates in the Gulf.  Customer deposits grew by 7% to reach $ 38.7 billion as compared to $ 36.2 billion, while loans grew by 1% to reach $26.5 billion as compared $ 26.1 billion. The Group maintained its strong and robust capital base with equity of $9.4 billion and a capital adequacy ratio of 16.8% calculated in accordance with Basel III regulations. The Group enjoys high liquidity with a loan-to-deposit ratio of 68.4%, while credit provisions held against non-performing loans continue to exceed 100%.

Mr. Sabih Masri, Chairman of the Board of Directors remarked that the Covid-19 pandemic has had a material impact on businesses around the world and the economic environments in which they operate. In an effort on safeguard their economies, governments and regulatory authorities launched various programs to mitigate the impact of the crisis. He added that the bank dealt with these challenges while maintaining its strong liquidity and capital positions.

Mr. Nemeh Sabbagh, Chief Executive Officer, stated that the Group took several strategic initiatives to help mitigate these unprecedented economic and market conditions, safeguarding its healthy liquidity and capital ratios, maintaining resilient asset quality metrics, and scaling up digital banking initiatives and channels across the Group.

Mr. Sabbagh also highlighted that the increased provisions taken across the Group are in accordance with the guidelines of International Financial Reporting Standard # 9, and as per the bank’s internal expected credit loss model, and include general provisions built due to the current economic situation in Lebanon.

Arab Bank was careful to support both its corporate and consumer customers who were impacted by the pandemic. Arab bank was also actively involved in community programs inline with initiatives by governments and regulators to alleviate the burden on customers by restructuring, deferring or reducing instalments and by lowering interest rates for the most exposed sectors, especially small and medium-sized companies.

Arab Bank Group has also donated $25 million as part of its social responsibility in support of national efforts to combat the COVID-19 crisis and to mitigate its health, economic and social repercussions on citizens.

Mr. Masri concluded by stating that while the negative impact of the pandemic is unprecedented, its effect on the Group is well cushioned by the bank’s resilience, the strength of its franchise, and the success of its diversified business model.

The 2020 financial statements are subject to the approval of the Central Bank of Jordan.