Jordan's Arab Bank says 2015 net profit falls due to U.S. lawsuits

 30 Jan 2016 - 15:17

Jordan's Arab Bank says 2015 net profit falls due to U.S. lawsuits
File photo of the main offices of Arab Bank in Amman. AFP

 

Amman: Jordan's largest lender, Arab Bank Group, said on Saturday it's 2015 net profits fell to $442 million, from $577 million a year earlier, after putting aside hundreds of millions to cover a legal settlement in the United States.

Arab Bank agreed last August to settle lawsuits filed by about 500 U.S. citizens who sued the lender under the U.S. Anti-Terrorism Act. The act permits U.S. citizens to pursue claims arising from international terrorism.

Chairman Sabih al-Masri said the bank had set aside $349 million in legal provisions in 2015 that were part of $1 billion in provisions the bank had accumulated over the last few years to cover the "expected obligations" under the settlement.

The bank, one of the biggest financial institutions in the Middle East, has not given a figure for how much it had agreed to pay.

REUTERS