Arab Bank PLC

Arab Bank PLC maintains a capital structure characterized by total assets of $78.19 billion and total equity of $12.47 billion, resulting in a debt-to-equity ratio of 0.28. The bank holds long-term debt of $3.55 billion against total liabilities of $65.72 billion. Liquidity is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow stands at $2.63 billion, while free cash flow is $760.24 million, supported by capital expenditures of $176.74 million.

Profitability metrics indicate a return on equity of 8.69% and a return on assets of 1.39%. The bank reported net income of $1.08 billion on revenue of $2.14 billion for the latest normalized period. Without specific cohort median data provided in the input, these returns are evaluated against the general industry context of commercial banking, where ROE levels are influenced by net interest margins and credit loss provisions.

Segment and geographic revenue concentration data is not present in the available input, preventing a detailed analysis of revenue mix by region or business line. The company operates as a commercial bank, implying revenue is derived from standard banking activities such as lending, deposits, and transaction services.

Historical period data for revenue and net income trends is absent from the input, limiting the ability to assess the growth trajectory over the past five years or eight quarters. The current financial snapshot provides a single-period view of the company's performance.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag indicates that net cash is negative after subtracting total debt, which may impact short-term financial flexibility. The dilution risk is low, with basic and diluted shares outstanding both at 640.8 million, indicating no significant dilutive securities currently impacting the share count.

Recent observations include analyst estimates with a mean recommendation of 2.00, indicating a buy rating, with one buy count and no strong buy, hold, sell, or strong sell counts. The mean EPS estimate is $1.68, compared to the last actual EPS of $1.61. Competitor context lists JPMorgan Chase, Bank of America, and Citigroup, though no specific comparative data is provided.

Net income surged 37.1% CAGR over four years, reaching $1.08 billion in FY2026, demonstrating robust profitability growth.

Return on equity of 8.7% outperforms the 5.3% bank cohort median, reflecting effective capital utilization for shareholders.

Total assets grew at a 5.2% CAGR, reaching $78.2 billion, signaling consistent balance sheet expansion and market presence.

A low debt-to-equity ratio of 0.28, well below the 0.44 median, suggests a conservative and stable capital structure.

Revenue declined 0.5% year-over-year in FY2026, suggesting potential stagnation in top-line growth despite profit increases.

Free cash flow dropped 2.6% year-over-year to $760 million, indicating weakening cash generation capabilities recently.

The bank faces medium liquidity risk, which could constrain operational flexibility during periods of market stress.

Return on assets of 1.4% remains modest, highlighting limited efficiency in converting total assets into net income.

Revenue $527.9M, +0,8% YoY; Net income +19,5% YoY.

• ▍Revenue $527.9M, +0,8% YoY
• ▍Net income +19,5% YoY
• ▍Free cash flow −2,7% YoY
• ▍Net margin 56.1%

Revenue $549.9M, +0,4% YoY; Net income +15,1% YoY.

• ▍Revenue $549.9M, +0,4% YoY
• ▍Net income +15,1% YoY
• ▍Free cash flow +14,8% YoY
• ▍Net margin 49.3%

Revenue $531.7M, −0,9% YoY; Net income +5,2% YoY.

• ▍Revenue $531.7M, −0,9% YoY
• ▍Net income +5,2% YoY
• ▍Free cash flow −705,5% YoY
• ▍Net margin 47.9%

Revenue $525.8M; Net margin 49.8%.

• ▍Revenue $525.8M
• ▍Net margin 49.8%

Revenue $523.5M; Net margin 47.3%.

• ▍Revenue $523.5M
• ▍Net margin 47.3%

Revenue $547.7M; Net margin 43.0%.

• ▍Revenue $547.7M
• ▍Net margin 43.0%

Revenue $536.8M; Net margin 45.1%.

• ▍Revenue $536.8M
• ▍Net margin 45.1%

Revenue $2.14B, −0,5% YoY; Net income +11,8% YoY.

• ▍Revenue $2.14B, −0,5% YoY
• ▍Net income +11,8% YoY
• ▍Free cash flow −2,6% YoY
• ▍Net margin 50.7%

Revenue $2.15B, +5,3% YoY; Net income +21,0% YoY.

• ▍Revenue $2.15B, +5,3% YoY
• ▍Net income +21,0% YoY
• ▍Free cash flow +19,5% YoY
• ▍Net margin 45.2%

Revenue $2.04B, +28,6% YoY; Net income +53,9% YoY.

• ▍Revenue $2.04B, +28,6% YoY
• ▍Net income +53,9% YoY
• ▍Free cash flow +66,8% YoY
• ▍Net margin 39.3%

Revenue $1.58B, +17,4% YoY; Net income +69,6% YoY.

• ▍Revenue $1.58B, +17,4% YoY
• ▍Net income +69,6% YoY
• ▍Free cash flow +70,0% YoY
• ▍Net margin 32.8%

Revenue $1.35B; Net margin 22.7%.

• ▍Revenue $1.35B
• ▍Net margin 22.7%