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.