Net Profits of Jordan Islamic Bank Rise By 53% and Assets By 16% In 2008

Manama, 9 March 2009:

Jordan Islamic Bank, a subsidiary banking unit of Al Baraka Banking Group B.S.C., announced that it achieved a significant increase of 52.8% in its net profits in 2008and increased its assets by15.7%, customer deposits by 14.2%, financing operations by 21.4% and share holders equity by 20.6%, according to a press release issued by the Bank yesterday. The statement also mentioned that the bank's operations were not affected by the consequences of the global financial crises and stressed the bank's ability to with stand any probable adverse developments that may arise from the crises.

The statement indicated that the Bank achieved a net profit (before tax) amounting to JD50.06million (US$70.6 million) in financial year 2008 compared to JD34.4 million (US$48.5 million) for 2007, representing an increase of45.5%. Profits after tax amounted to JD35.14 million (US$49.6 million) compared to JD 23million (US$32.4  million) for 2007, representing an increase of 52.8%.

The rate of return on assets before tax was 2.7% compared to 2.15% as at the end of 2007, while return on assets after tax was 1.9% and earning per share after tax in 2008was about43.3% compared to 28.3% in 2007, which represents an increase of 52.8%. The return on average equity after tax was 23.87%, as a result of the growth in financing and investment operations during the year.
The balance sheet of Jordan Islamic Bank showed that the bank achieved noticeable improvements on all financial indicators during 2008 including profits, deposits, assets and investments. This contributed to an increase of 15.7% in assets to reach JD1.84 billion (US$2.6 billion) as at the endof2008compared to JD1.59 billion (US$2.2 billion) as at the endof2007.

The total balance sheet footing of the bank including restricted investment accounts, investment account and wakala investment accounts amountedtoaboutJD2.17billion (US$3.1billion)compared to JD1.93 billion (US$2.7 billion) as at the end of 2007, representing an increase of 12.4%.

This increase was invested in investment and financing operations, as such operations increased by 21.4% to reach JD1.11 billion (US$1.6 billion) compared to JD917.9 million (US$1.3 billion)as at the end of 2007,which showed that the bank's activities were growing in the different financing and investment areas.

Total customer deposits as at the end of2008 amounted to about JD1.548billion (US$2.2 billion) compared to JD 1.355(US$1.9 billion) for the same period of last year, representing an increase of14.2%. Customer deposits plus managed accounts (restricted investment accounts, Mukaradah bonds and investment accounts managed on behalf of clients)amountedtoaboutJD1.84billion (US$2.6billion)as at the endof2008compared to JD1.65 (US$2.3 billion) for the same period of last year, representing an increase of11.4%.This reflects the customers' confidence in all banking operations of Jordan Islamic Bank.

Shareholders equity increased by 20.6% from JD133.5 million (US$188.1 million) in 2007 to JD161 million (US$227.1 million) in 2008,whichconfirms the soundness of the bank's capital base.
On this occasion, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Jordan Islamic Bank and President and Chief Executive of Al Baraka Banking Group, said that Board of Directors approved the balance sheet and closing accounts of 2008 and proposed that they be submitted to the Ordinary General Meeting which is scheduled to be convened on 29.4.2009 and to distribute dividends of15% of the Bank's capital to the shareholders. Mr. Adnan Yousif added that he Bank continued to implement its corporate governance plans to improve its results and operations to the best interest of the shareholders and customers.

Mr. Adnan Yousif said that despite of the adverse implications of the global financial crises that impacted many of the banks in the region, increased competition in the Jordanian market and the rapid steps taken towards achieving financial and economic openness, Jordan Islamic Bank was able to achieve excellent results. This excellent performance was the result of the hard work of the executive management and all employees of the Bank and the strong support that he parent companies, Al Baraka Banking Group, which contributed to enhancing the bank's status and increase its market share. The bank continues to enjoy the confidence of both of its corporate and individual customers alike. We are very proud of the these results and the market position that the bank holds.
As for the future, Mr. Adnan Yousif said that Jordan Islamic Bank would continue to maintain its rate of growth and seek to deliver balanced returns for its share holders, depositors and employees and that it would work towards increasing its market share through offering a complete range of competitive products and expanding its branch network.

On his part, Vice Chairman of the Board of Directors and General Manager of Jordan Islamic Bank Mr. Musa Shihadeh said that the results achieved by Jordan Islamic Bank were a clear indication of the success of Islamic banking and that Islamic banks can withstand all challenges and difficulties.
Mr. Shihadeh added that the Bank was implementing plans and strategies to expand its Ijarah Muntahia Bittamleek financing operations and as well as its programs for professionals, craftsmen and small enterprises. The Bank also continued to modernize and upgrade its systems so as to meet the growing needs of the Bank for modern banking systems and technologies. It is through these efforts that the Bank were able to hold a leading position in the local market by expanding its services and financing activities. He further stressed that the Bank's strategy was based on a number of principles including the need to maintain the financial position of the Bank, increasing its market share and implementing a package of banking policies to enable the Bank keep abreast of the developments that the Islamic banking industry is currently witnessing.

Item Amount Growth Rate
Net Profit US$49.6 million
Financingand investments US$1.6 billion
Deposits US$2.2 billion
Shareholders' Equity US$227.1 million
Total Assets US$2.6 billion

Jordan Islamic is a subsidiary unit of Al Baraka Banking Group. Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain Stock Exchange and Nasdaq Dubai stock exchange. It is a leading international Islamic bank with Standard and Poors long and short term credit ratings ofA-3 and BBB-respectively. Al Baraka Group offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shari'a. The authorized capital of Al Baraka Group is US$1.5 billion, while the total equity amounts to about US$1.55 billion. The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in twelve countries, which in turn provide their services through more than 283 branches. These banking Units are Jordan Islamic Bank/Jordan, Al Baraka Islamic Bank/Bahrain, Al Baraka Islamic Bank/Pakistan, Banque Al Baraka D'Algerie/Algeria, Al Baraka Bank Sudan/Sudan, Al Baraka Bank/South Africa, Al Baraka Bank Lebanon/Lebanon, Bank Et-Tamweel Al-Tunisi AlSaudi/Tunisia, The Egyptian Saudi Finance Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Al Baraka Bank Syria (under formation), and an Al Baraka Group representative office in Indonesia.

For further information, please contact:

Al Baraka Banking Group
Corporate Communications Department
Tel: +973-17-541122
Fax: +973-17-536533
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