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   2016
   
 

Net Profits of Jordan Islamic Bank Rise by 19% in first nine months of 2016

 31  October 2016


Jordan Islamic Bank, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that it had achieved a large improvements in its results for the first nine months of 2016, where net profits increased by 19% compared to the same period of 2015. It also increased its total assets (including restricted investment accounts, muqarada bonds and investment by proxy accounts) by 6.1%, financing and investments (including restricted investment accounts, Muqarada bonds, investment by proxy) by 2.5%, deposits (including restricted investment accounts, muqarada bonds and investment by proxy accounts) by 6.4% and shareholders equity by 6.3% at the end of  September 2016 comparing to the end of December 2015.

The financial results of the Bank showed an increase in total operating income by 14% to JOD 127.5 million for the first nine months of 2016 compared to the same period in 2015. After deducting operating expenses of JOD 48 million, the Bank achieved a noticeable improvement in net operating income by 18.4% from JOD 54 million to JOD 64 million during the first nine months of 2016. This improvement reflects the growth in income from all financing and investment operations in addition to the Banks success in controlling the operating expenses, where its percentage from total operating income decreased from 40% during the first nine months of 2015 to 37.7% during the first nine months of 2016. As a result, the net profits recorded a large increase of 19% to reach JOD 42 million for first nine months of 2016 compared to same period in 2015.

As at the end of September 2016, the assets (including restricted investment accounts, muqarada bonds and investment by proxy accounts) of the Bank increased by 6.1% to JOD 4.42 billion  compared with JOD 4.17 billion in December 2015. This increase was invested to finance the growth in financing and investments (including restricted investment accounts, muqarada bonds and investment by proxy accounts) which increased by 2.5% to JOD 3.2 billion at the end of September 2016 compared to JOD 3.1 billion at the end of December 2015. This growth, in turn, was financed by increasing the Bank's customer deposits accounts (including restricted investment accounts, muqarada bonds and investment by proxy accounts), which increased by 6.4% to  reach JOD 4 billion at the end of September 2016 compared to JOD 3.7 billion as the end of 2015 and funded 90% of the total assets of the Bank, and also through the shareholders equity which  strengthened by 6.3% to JOD 331 million as at the end of September 2016 compared to December 2015.

On this occasion, Chairman of the Board of Directors of Jordan Islamic Bank and President & Chief Executive of Al Baraka Banking Group Mr. Adnan Ahmed Yousif said:  the achievements of the Bank highlighted it obvious role in the consolidation of the Islamic banking experience,  being the first and largest Islamic bank in the Jordanian banking market, and now occupies a prominent position because of the high-quality  Islamic banking services and products offered to the various customer segments of individuals and institutions to meet the needs of Jordanian society and market.

Mr. Adnan added: The Bank has continued during the first nine months of 2016 to expand its branch network, adding three new branches to bring the total to 95 branch employs 2180 employees and scattered all over the country;  it is going at a steady pace in the implementation of its long  term plan to increase  the number of branches to 117 in five years.

For his part, CEO & General Manager of Jordan Islamic Bank Mr. Musa Abdul Aziz Shihadeh said that the Bank's financial results for the first nine months of 2016 were good and distinct thankfully, and the  clear growth in profits, assets and deposits and investment confirms the success of the managements policy in the implementation of strategic plans and continue to diversify banking services in conjunction with enhancement of the status and role of the Bank's  in the Jordanian economy.

He added: As a prominent sign of Jordan Islamic Bank's position in the Jordanian market, the Bank won for the eighth consecutive year the " Best Islamic financial institution in Jordan for the year 2016 ", award as a part of the annual awards that the Global Finance magazine, which is specialized in banking and finance, awards to international banks and financial institutions. The winning of this  award was announced in a final result statement by the magazine's Award Committee, which included in its membership, a number of economists and editors of Global Finance, international financial advisors and a number of bank managers and experts in the field of banking. The Bank received this awards for its  prominent role in the Islamic banking sector, its ability to achieve consistent growth in the future and meeting professional standards in terms of the quality of products and services offered to clients, as well as for its  originality and innovation in services and customer service, continued development and innovation in banking operations and other important criteria such as strategic relationships, geographic reach, profitability and robustness of financial position.

The last period also  saw a remarkable activity of the Bank in the framework of social responsibility, including the platinum sponsorship of the Forum for Financial Inclusion, organized by the Union of Arab Banks in cooperation with the Central Bank of Jordan and the Association of Banks in Jordan, as well as provides the sponsorship and support for the Third Economic Forum " Institutional and Legal Requirements to Combat Money Laundering and Challenges they Face" and the signing of a cooperation agreement with the Jordanian medical Association to continue providing Islamic finance and  banking services to members, retirees and employees of the Association  for the purposes of home ownership or buying a car or furnishing clinics and offices of physicians and their  business needs and other purposes at competitive prices and comfortable conditions in accordance with the Sharia, as a renewal of the agreement that has been signed since 2007.

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.

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