With a growth of 11.5% Jordan Islamic Bank records profits after tax of US$ 39.5 million for first half of 2016
20 September 2016
By the end of the first half of 2016, Jordan Islamic Bank (JIB) a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG) and its investment arm in Jordan, achieved profits after tax in an amount of about US$ 39.5 million compared with about US$ 35.3 million for the first half of 2015 with a growth of nearly 11.5%, where profits before tax amounted to about US$ 59.8 million compared to about US$ 52.5 million of the same period of the last year with a growth of nearly 14%.
Mr. Adnan Ahmed Yousif, Chairman of Jordan Islamic Bank / President & Chief Executive of Al Baraka Banking Group in Bahrain, expressed how much pleased he is with the efforts exerted by the executive management and the banks staff to implement the strategic plan and sustain growth to achieve good results which confirm the banks solid financial strength and maintain a distinguished position in Jordanian banking sector, in addition to the interest of the great worldwide institutions and magazines in observing the success of our bank to reap numerous awards whose last was the best Islamic bank in Jordan for 2016 from The Banker Magazine, for the fourth consecutive year, which pushes us to keep what we have accomplished and seek to achieve further successes.
Concerning the financial statements that Jordan Islamic Bank (JIB) achieved during the first half of 2016 and approved upon by the Board of Directors of JIB in its meeting held on 27/7/2016, Mr. Musa Shihadeh, CEO / General Manager of JIB said we are pleased to announce that our bank has achieved good growth ratios in its all financial statements during the first half of the current year, asserting its clear role in boosting the national economy and its development. The banks assets including (restricted investment accounts, muqarada bonds and investment by proxy accounts) grew by 3.9 % during H1 2016 amounting to about US$ 6.11 billion compared to about US$ 5.88 billion by the end of 2015.
The bank achieved a growth of 3.3 % in the financing and investment activities and in various productive sectors including corporate, retail and Small & Medium enterprises. Facilities granted for customers including (restricted investment accounts, Muqarada bonds, investment by proxy) amounted to about US$ 4.60 billion during the first half of 2016 compared to about US$ 4.44 billion by the end of 2015.
Clients' deposits (including restricted investment accounts, Muqarada bonds and investment by proxy accounts) achieved a growth of 4.2 % , amounting to about US$ 5.50 billion by the end of H1 2016 compared to about US$ 5.29 billion by the end of 2015, in confirmation of the banks excellent developed banking services that are in compliance with the provisions and principles of Islamic Sharia.
Mr. Musa Shihadeh indicated that after the distribution of the cash dividends at 15 % for the previous year 2015 during April month of the current year, the growth of owners equity reached about 1.7 % at the end of the first half of 2016 amounting to about US$ 446.5 million compared to about US$ 438.9 million by the end of 2015. profit per share increased for the six months period ending June, 30th to US$ 0.262 compared to US$ 0.236 at the end of June of the last year.
These results reflected positively on the performance indicators of the bank. Capital Adequacy Ratio (CAR) stood at about 20.11% as of 30/6/2016, non-performing assets reached 3.83% with coverage ratio 114.1%.
Mr. Musa Shihadeh assured the continuation to work with enthusiasm as one team so that JIB will be always in the lead to achieve the aspirations of its customers and shareholders whose support and confidence of the bank for a duration of 37 years and keeping pace with the banks development and growth is highly appreciated.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term).
Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2.1 billion. The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in fifteen countries, which in turn provide their services through over 700 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.