Huge Gap, Clear Leader.. The Battle for the Top Spot in Jordan’s Banking Sector

The recent trajectories of Arab Bank and Bank al Etihad reflect two distinct growth models within Jordan’s banking sector. While Arab Bank has maintained its position as the country's largest banking institution in terms of size and financial strength, Bank al Etihad has achieved remarkable expansion, strengthening its competitive position through a combination of organic growth and an expansion strategy supported by acquisitions. These acquisitions have accelerated the development of its business base and broadened its banking footprint.

An analysis of the financial indicators as of March 2026 shows that Arab Bank continues to dominate the sector in terms of scale, while Bank al Etihad has posted comparatively higher growth rates over recent years. This highlights the contrasting strategies pursued by the two institutions: one built on historical scale and financial resilience, and the other on accelerated growth and increasing market share.

According to March 2026 financial data, Arab Bank remains the largest bank in Jordan by total assets, with US$78.97 billion, while Bank al Etihad ranks second with US$18.75 billion, underscoring the significant gap between the two institutions.

The disparity is equally evident in customer deposits. Arab Bank's deposit portfolio reached approximately US$55.16 billion by the end of 2025, compared toUS$14.22billion for Bank al Etihad, reflecting the difference in customer base size and the breadth of each bank's business network.

The gap also extends to lending activity. Arab Bank's net loan portfolio totaled approximately US$38.18 billion as of March 2026, compared to US$9.65 billion for Bank al Etihad, reaffirming Arab Bank's superior financing capacity.

However, a closer look at growth dynamics over the past three years (from the end of 2022 to March 2026) presents a different picture. During this period, Bank al Etihad expanded its total assets by 98.6%, significantly outpacing Arab Bank's 22.5% growth.

Despite this impressive expansion, it was not sufficient to narrow the absolute gap between the two banks. Instead, the difference in total assets widened from US$55.02billion at the end of 2022 to US$60.23 billion by March 2026 in favor of Arab Bank.

A similar trend is observed in deposits. Bank al Etihad recorded deposit growth of 94.4% over the three-year period, compared with 21.8% for Arab Bank. Consequently, the deposit gap widened to US$40.94 billion by March 2026, up from US$37.97 billion at the end of 2022.

On the lending side, Bank al Etihad also posted faster growth, expanding its loan portfolio by 71.4% over the same period, compared with 20.3% for Arab Bank. Nevertheless, the financing gap increased from US$26.10 billion at the end of 2022 to US$28.53 billion by March 2026.

Profitability indicators continue to demonstrate the strength of Arab Bank's business model. The bank reported net profit of US$276 million during the first quarter of 2026, compared with US$52 million for Bank al Etihad over the same period.

Arab Bank also delivered stronger operational efficiency in terms of Return on AverageAssets (ROAA), posting 1.40%, compared with 1.15% for Bank al Etihad during the first quarter of 2026.

Conversely, Bank al Etihad outperformed Arab Bank in Return on Equity (ROE), achieving 18.93% versus 8.38%, reflecting greater efficiency in utilizing shareholders' equity and generating higher returns for investors.

Regarding capital strength, Arab Bank maintains a clear advantage that supports its future expansion capacity. As of March 2026, its paid-up capital stood at approximately US$927 million, compared with US$459 million for Bank al Etihad, providing greater financial flexibility to support growth and absorb operational challenges.

Overall, the data confirms that Arab Bank continues to lead Jordan's banking sector in terms of size and financial strength, benefiting from a broad business base and a solid financial position. Meanwhile, Bank al Etihad represents a different growth model focused on accelerating expansion and enhancing operational efficiency.

Bank al Etihad's strong performance in recent years reflects a combination of organic growth, improved operational performance, and strategic acquisitions that have enabled it to expand its business base and strengthen its market presence, resulting in exceptionally high growth rates over a relatively short period.

Nevertheless, the substantial difference in scale continues to favor Arab Bank, remaining the decisive factor behind its market leadership and superior financing capacity.