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DatabankOctober 28 2021

Diverging paths of NPLs at Jordanian banks

Arab Bank, the country’s largest lender, saw bad loans increase to 6.8% of its total loan book in 2020, while Jordan Islamic Bank, the fourth-largest bank by assets, saw its NPL ratio drop to 2.6%.
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Non-performing loans (NPLs) at Jordan’s four largest banks by assets have taken divergent paths over the past few years, during a period marked by continuing civil unrest in the eastern Mediterranean country as well as, more recently, the fallout from the Covid-19 pandemic.

Arab Bank, the largest bank in the country by assets and Tier 1 capital, saw its NPL ratio rise to 6.8% in 2020 from 5.1% in 2018, according to The Banker Database.

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