Jordan Islamic Bank Posts Profit after Tax of US$ 32.7 million as at the End of September 2009
Manama, 28 October 2009: Jordan Islamic Bank, a subsidiary-banking unit of the Bahrain-based Al Baraka Banking Group B.S.C., announced its financial results for the third quarter of the current year.
Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Jordan Islamic Bank and President & Chief Executive of Al Baraka Banking Group, said that "We are proud of the successes achieved by the Bank in the thirty years since it commenced its Islamic banking operations as it enhanced its capital base by finalizing the formalities to raise its capital from US$ 114.6 million (114.6 million shares) to US$ 141 million (141 million shares) by distributing bonus shares to its shareholders. The shareholders' equity had increased to about US$ 242.6 million as at the end of the third quarter of this year compared to about US$ 227.1 million as at 31 December 2008, a growth of 7%.
Stressing the success of Jordan Islamic Bank in enriching the experiment of Islamic banking in the Jordanian, Arab and global market, Mr. Yousif said that "the excellent results achieved by the bank coincide in time with the bank receiving in this month the 2009 Award of Best Islamic Financial Institution in Jordan from the US magazine "Global Finance" for its contribution towards growing Islamic finance and meeting the needs of its customers, which made it one of the leading Islamic banks". The award giving ceremony was held in Istanbul, Turkey, at the same time as the Annual Meetings of the International Monetary Fund and World Bank which were held there.
On his part, Vice Chairman of the Board of Directors and Chief Executive Officer of Jordan Islamic Bank Mr. Musa Abdul Aziz Shihadeh said that the Bank had achieved a net profit after tax of about US$ 32.7 million during the period up to 30 September 2009.
The total assets of the bank, including the managed accounts (restricted investment accounts, Muqarada bonds and investment by proxy accounts) amounted to about US$ 3.368 billion as at 30 September 2009 up from US$ 3.061 billion as at the end of 2008, a growth of 10%, which reflects the continued progress and growth of the Bank in consolidating its position in the Jordanian banking sector.
Likewise, customer deposits increased at the end of the third quarter of this year by about US$ 358 million to reach US$ 2.543 billion dollars against US$ 2.185 billion dollars as at 31 December 2008, a growth of 16.4%.
Customer deposits, including the managed accounts (restricted investment accounts, Muqarada bonds and investment by proxy accounts) amounted to about US$ 2.917 billion as at 30 September 2009 compared to US$ 2.595 billion as at 31 December 2008, a growth of 12.4%.
Mr. Shihadeh added that the increase in facilities granted to customers as at the end of the third quarter of this year had increase by about US$ 169.8 million to reach about US$ 1.755 billion compared to US$ 1.585 billion as at the end of 2008, a growth of 10.7%. This comes in line with the directives of the Central Bank of Jordan to banks to continue extend credit facilities to customers. The financial indicators of the Bank showed that the after tax earnings per share as at 30 September 2009 were about 23.2%.
Mr. Shihadeh affirmed that the Bank would continue to enhance the experiment of Islamic banking by showing that the Sharia law was able to deal effectively with the realities of today, while at the same the Bank fully complied with the laws, legislation, rules, regulations, instructions, practices and methods of control and inspection that apply to banks in the Kingdom of Jordan. The bank also sought to develop and enshrine in its culture the principles of corporate governance, develop risk management and continue to implement the requirements of Basel II.
Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic bank with Standard & Poor's long and short-term credit ratings of BBB- and A-3 respectively. Al Baraka Banking Group offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Islamic Shari'a. The authorised capital of Al Baraka Banking Group is US$1.5 billion, while total equity amounts to about US$1.58 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 300 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 Limited, South Africa; Al Baraka Bank Lebanon, Lebanon; Bank Et-Tamweel Al-Tunisi Al-Saudi, Tunisia; the Egyptian Saudi Finance Bank, Egypt; Al Baraka Turk Participation Bank, Turkey; Al Baraka Bank Syria (under formation) and a representative office in Indonesia.
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Al Baraka Banking Group B.S.C
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