A Fundamental Assignment
Arab Bank must constantly adapt to change and meet challenges
in order to best fulfill the needs of its customers. The Bank's
survival and steady performance over time is evidence of its ability
to position itself strategically without loosing the focus of
its original vision.
Arab Bank's financial objectives are best met by concentrating
on targeted markets, recognizing their requirements, and satisfying
them effectively. The Bank's clients have underscored the need
for three new product lines in the areas of Islamic banking, funds
and investment products and hedging and risk management. Arab
Bank's response has been timely and effective.
The Islamic International Arab Bank Plc has just started operations.
Furthermore, a new and wide range of funds and investment opportunities
are being made available to Arab Bank customers...
Financial strength along with solid earning power which out-performed
competitors are evident in the results of 1997. The Bank has continued
improving its profitability while maintaining its asset quality
and strong financial position. Arab Bank Group's net income after
tax to average equity ratio was 14.8%. Return on average assets
was augmented to 1.35% from 1.31%. On the other hand, the liquidity
ratio is at 48.0% compared to 51.1%. Capital adequacy for credit
risk is 16.28%...
The founders' mission continues to direct the efforts of the
institution by meeting the needs of clients with innovative and
effective financial services and products. Efficiency is achieved
by the superior productivity of Arab Bank's loyal and motivated
The unique position of Arab Bank is strengthened by a significant
and meaningful global presence. It is considered the only Bank
in the region that has successfully achieved a fitting and useful
Looking to the future, Arab Bank will continue to assess its
successful multinational presence as a vital participation in
international markets. The energizing base will always be its
strategic regional position. The Bank will work to coordinate
four basic strategic elements. First and foremost is the satisfaction
of customers and the realization of their needs. Products and
the continuous development of human resources will always be the
tools to achieve pre-set targets. Innovation and improvement in
management Information systems is another important element that
will participate in measuring performance and in assigning responsibilities
at an extremely detailed level.
Financially, Arab Bank will work to be among the highest capitalised
institutions in the region by continuously retaining its growing
income. Anticipated average growth rate of net income after tax
is expected to exceed the growth rate of the past three years.
The development in asset size will be correlated with the growth
in equity, leaving always a comfortable margin for the enhancements
of earning power. The structure of assets may be changed slightly
towards higher productivity. Again, the liquidity ratios will
remain substantially better than the accepted norms in the region
and in international markets.
Board of Directors