The Bank’s net profits before tax reached $72,21m at end of financial year 2012 with an increase of $16,22m and with a growth of 28.9% compared to $55,99m at the end 2011, whereas its net profits after tax reached $51,48m compared to $39,92m at the end 2011 and with an increase of $11,57m and with a growth of 28.7%.
The Bank’s Board of Directors recommended the Ordinary General Assembly to distribute cash dividends to shareholders at 15 % of the Bank’s capital. It is decided to hold the meeting on Wednesday 24/4/2013.
The Bank reinforced its position in Jordan banking sector where the Bank has advanced its capital base by upgrading its capital to share $176,30m during 2012 and distributing bonus shares to shareholders at 25%. Shareholders’ equity at end 2012 reached about $322,28m compared to about $291,82m at end 2011 with a growth of 10.5%.
The rate of return on average shareholders’ equity before tax reached about 23.5 % and after tax about 16.74%. Capital Adequacy Ratio (CAR) reached at the end of 2012 about 19.56% according to capital adequacy standard of Islamic banks issued by Central Bank of Jordan(CBJ) based on the standard issued by Islamic Financial Services Board (IFSB).
Joint investment profits before distribution reached about $204,51m compared to $155,15m distributed at end of 2011 which helps in reinforcing the continuous profitability, improving the Bank’s operational performance and developing its financing and investment activities.
The increase in finance and investment at end 2012 reached about $970,38m to become $3bn and 174,89m compared to $2bn and 204,51m at end of 2011 and with a growth of 44%. Thus, the Bank’s share to the total balance of finance and investments in other working banks in Jordan reached 13.8 % at the end of 2012 compared to 11.2% at end 2011 which reflects the increase in its good market share.
The total assets at the end of 2012 reached around $4bn and 259,52m compared to $4bn and 87,45m at the end of 2011 with an increase of about $172,07m and with a growth of 4.2%. The Bank’s share to the total assets of other banks working in Jordan reached 8.3% at end of 2012 and it is the same ratio at end 2011 which asserts the Bank’s advancement and development to enhance its position in Jordan banking sector.
The total clients’ deposits at end 2012 reached about $3bn and 844,85m compared to $3bn and 716,50m in the same period of 2011 with an increase of $128,35m, by a growth of 3.4%. Thus, this indicates the extent to which clients are confident of Jordan Islamic bank’ financial position.
The Bank runs money in restricted investment accounts and investment portfolios that reach around $359,66m. The Bank’s share to the total of other banks’ saving schemes reached 11.8%. at end 2012 compared to 11.6% at end 2011.
H.E. Mr. Adnan Ahmad Yousif, Chairman of the Board of Directors of JIB, CEO of AlBaraka Banking Group(ABG) expressed how much pleased he is with the efforts made by the Bank’s executive management and its staff.
He asserted that the Bank has benefited from Jordan economic performance, financing many economic sectors, expansion in finance and investment portfolio which reflects on the operational results and profitability of the Bank.
Yousif indicated that the Bank works on developing and implementing many internal procedures such as operational risks systems, anti money laundering, new systems of credit rating, finalizing banking operations systems. It has finalized as well the procedures demanded to render platinum card for the most prominent clients at the Bank and AlBaraka Banking Group’s units.
The Bank intends to continue inaugurating branches and cash offices during 2013, so their total number will be 84. The Bank increased as well the number of ATMs in the kingdom to reach 160. JIB intends as well to keep average of expansion in branches during the coming four years where the Bank will have 78 branches and 22 cash offices, or what is totaled to 100 at the end of 2017.
For his part, Mr. Musa Shihadeh , Vice Chairman & General Manager of JIB, said, “The results the Bank achieved make us proud of the Bank’s financial solvency, the strength of its capital base, the safety of its credit and investment portfolio and the increase in its customer’s expansive base.”
While we continue to enhance its products and services series, the Bank has expanded its branches networks and increased the number of ATMs which have reached 123 ATM at the end of the year. The Bank commenced to present Contact Centre Services to communicate with clients and answer their inquiries.
In the field of banking techniques, the Bank has accomplished many developments and updating most notably, finalizing the implementation of the new banking systems in all branches and offices during 2012, expand in ATMs network, I- Banking, SMS. It will render as well new financing and investment products compliant with provisions and principles of islamic sharia including products to finance tuitions of schools, colleges and universities, finance costs of Hall or Umrah, medical treatment and surgical operations.
Shihadeh added, “The achievements the Bank obtained assert its pioneering position and the success of its strategy which is an extension of long years placed it in a notable stage in the field of islamic banking business through ensuring and developing islamic banking services which meet clients’ needs based on islamic sharia principles.”
It is worth mentioning that Al Baraka Banking Group is a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poors investment grade long term counterparty credit rating of BBB- / A-3 (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 $1.5bn, while total equity amounts to about $2bn.
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 more than 400 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.
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