JIB posts profits before tax of US$ 125 million for 2019 with a growth rate 17.4%
10 March 2020
Jordan Islamic Bank, a subsidiary banking unit of Al Baraka Banking Group B.S.C (ABG), has achieved upward growth with its various financial indicators at the end of the year 2019, as the net profits before tax achieved by Jordan Islamic Bank (JIB) at the end of 2019 increased to about JD 88.6 million (US$124.9 million), compared to JD 75.4 million (US$ 106.3 million) at the end of 2018, with a growth rate 17.4%, while profits reached after tax reached about JD 54.3 million (US$76.6 million), compared to about JD 49.8 million (US$ 70.2 million) for the year 2018, with a growth rate 9.1%.
Mr. Musa Shihadeh, Chairman of the Board of Directors of JIB expressed his pride in the progressive growth rates achieved by the Bank in its various financial results and the continuity of its effective contribution in the service of the national economy that matches the aspirations of the Bank's customers and shareholders, and emphasizes on the success of the Bank's strategic plan in facing the various challenges that are still surrounding the region and the ability to deal with them with the utmost efficiency to more achievements, praising the efforts of the executive management and all employees of the bank to implement the strategic plan with a high professionalism to maintain a solid financial and credit position, expressing his thanks and appreciation to the Central Bank of Jordan (CBJ) and to governmental institutions and bodies that consider and support the privacy of Islamic banking.
Noting that the Board of Directors of Jordan Islamic Bank has approved the final financial statements of the bank for the year 2019 and decided in its meeting held on 6/2/2020 to recommend to the ordinary General Assembly which will hold its meeting on 20/4/2020 distributing cash profits to shareholders for the year 2019, In percentage 15% of the par value of the share.
On his part, Mr. Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group, said, "We congratulate our banking unit in Jordan for these distinguished results, an achievement that is fully consistent with the track record of outstanding performance and great successes achieved by the Bank in all fields, being one of the largest and the oldest bank in Jordan, which provides all Shari'a-compliant banking services and products, as well as its major contribution to sustainable development programs in Jordan.
Dr. Hussein Said, Chief Executive Officer & General Manager of Jordan Islamic Bank stated about the Bank's financial results for 2019 - that achieving growth in the various bank's financial indicators with commitment and compliance with the principles of governance in facing risks, as clearly reflected on all the results of the Bank, strengthened the bank's position in the Jordanian banking sector, where the growth rate in the bank's assets, including (specified investment accounts and Wakala investment accounts (investment portfolios), reached about 7.6% to about JD 4.970 billion (US$ 7 billion), compared to about JD 4.617 billion (US$ 6.5 billion) at the end of 2018, with an increase amounted to about JD 353 million (US$ 498 million).
The facilities granted for customers including (specified investment accounts and investment Wakala accounts (Investment portfolios) grew by around 7.5% amounting to about JD 3.817 billion (US$ 5.4 billion) compared to about JD 3.551 billion (5 billion) at the end of 2018 with an increase of about JD 266 million (US$ 375 million). This is to confirm the Bank's interest in the importance of investing funds through diversifying its investments and financings, developing and distributing them geographically among different sectors, including individuals, companies, and small and medium enterprises (SMEs), and within a clear and specific policy.
The Bank also continues to provide banking products and services that keep pace with the latest technological developments and are compatible with the provisions and principles of Islamic Sharia which enhance the confidence of the Bank's, clients as their deposits and accounts including (specified investment accounts and investment Wakala accounts (Investment portfolios)) reached about 7.6% amounting to about JD 4.395 billion (US$ 6.2 billion) compared to about JD 4.086 billion (US$ 5.8 billion) at the end of 2018, with an increase to about JD 309 million (US$ 436 million).
Dr. Hussein Said further added that Shareholders' equity grew by 7.2 % to reach about JD 412.6 million (US$587 million) compared to about JD 393.4 million (US$ 555 million) at the end of 2018. The Return on Average Equity (ROAE) after tax was about 13.34% with the bank's capital increasing to JD 200 million (US$ 282 million) during the year of 2019. Capital Adequacy Ratio (CAR) reached about 22.60% at the end of 2019, which exceeds the limit of 12% of the capital adequacy for Islamic banks issued by the Central Bank of Jordan, confirming on the strength of the Bank's capital base. The return on average assets (ROAA) after tax was 1.26%; where the coverage ratio of Non- Performing Finance (NPF) reached 122.4% and this is in continuation of the bank's of efforts to keep the quality of its assets.
About Al Baraka
Al Baraka Banking Group B.S.C. (ABG) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain and is listed on Bahrain Bourse and NasdaqDubai. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion.
The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in 17 countries, which in turn provide their services through over 700 branches. Al Baraka Banking Group has operations in Jordan, Egypt, Tunis, Bahrain, Sudan, Turkey, South Africa, Algeria, Pakistan, Lebanon, Saudi Arabia, Syria, Morocco and Germany, in addition two branches in Iraq and two representative offices in Indonesia and Libya.
ABG and its Units offer retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of ABG is US$ 2.5 billion.
ABG is rated BB (long term) / B (short term) by Standard & Poor's and BBB+ (long term) / A3 (short term) by Islamic International Rating Agency (IIRA). IIRA has also rated ABG on the national scale at A+ (bh) / A2 (bh) with a fiduciary score of 81-85, the highest level amongst Islamic Financial Institutions in the region.