Al-Hekma for Financial Services
Tel +962 6 5654046/47/48
Fax: +962 6 5654049
Brief Update
Date: Aug 2010
Basic Information:
Company's Name:
Company's Code:
ARBK Mid-Year 2010 Brief

Arab Bank Group
ARBK
Main Investors:
Local:
Companies:

68.5%
Individuals:
Foreign:
Companies:
Individuals:
13.8%
17.6%
0.1%

Liquidity:
Closely Held Shares
Free Float
Average daily transactions in no. of shares
(last 3 months)
Average daily trading in JD (last 3 months)
55.0%
45.0%
225,078
2,422,937
Lower mid-year net income of 11.8%. Net income stood at $303
million against $344 million in mid-year 2009. The drop is mainly
attributed to additional credit provisions of $124 million bringing total
provisions to $864 million, 44.4% of non-performing loans, compared to
43.4% at year end.
Main balance sheet figures continue to tighten. Total assets
declined to $48.9 billion , compared to $50.6 billion at the end of 2009.
Net credit facilities also shrank from year end by 1% to reach a level of $
21.8 billion as a result of low global demand for credit facilities. While
customer deposits dropped from year end by 2.4% to reach a level of
$30.7 billion. Noting that 38.3% of customer deposits at Arab bank is in
NIB deposits ($11.8 billion).
Net income in 2010 expected not to exceed 2009 level of $576
million. Pressure to further grow credit provisions by $150-$250 to
improve coverage ratio, the narrowing interest margins at 3% mid-year
2010 and the dim prospects of a quick real estate recovery in the Gulf
,may result in net income in 2010 lower and at best similar to 2009
levels.
Price Value:
Profits & Dividends
2008
2009
Q2-2010
Price on Aug 1, 2010
10.04
Profit (‘000)
839,814
575,542
303,261
Price @ Year-end (2009)
12.15
Amount distributed (‘000)
58,323
58,323
NA
Price @ Year-end(2008)
14.95
EPS
3.74
1.58
0.39
Average Price during 2009
12.91
Cash distribution ( as% of capital)
70%
70%
NA
Financial Indicators: (USD million)
Historical Ratios
2007
2008
2009
Book Value
4.67
7.71
7.71
P/E (prices at year end)
19.4
9.4
22.9
P/B
7.47
4.56
4.6
Dividend Yield
1.0%
2.0%
1.9%
Capital
Shareholders' Equity
Total Assets
Total Liabilities
Liabilities/Shareholders' Equity
Revenue
2008
776
7,508
45,630
38,121
2.99
1,867
2009
776
8,096
50,601
42,503
2.72
1,774
Q2-2010
776
8,083
48,927
40,844
5.05
905