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Jordan Kuwait Bank announces its financial results for the year 2010

Jordan: Wednesday, February 02 - 2011 @ 10:52

Mr. Kabariti announced that JKB’s income in 2010, after taxes and provisions, reached $73.26m, recording a growth of 18.5% from the previous year and recorded $2.94bn in total assets, reflecting a slight decline of 2.6% from 2009.

Net direct credit facilities recorded a growth of 7.5% from 2009 and reached $1.65bn while customers’ deposits and cash margins grew to $2.01bn as at 31 December 2010 recording a 5% growth. JKB’s income, before taxes, reached $104.19m at the end 2010 compared to $85.25m at the end of 2009, recording a 22.2% growth noting that profits in 2009 had included a $14.7m from the sale of the Bank’s Arab Orient Insurance Co. shares, and with the exclusion of this exceptional and non-recurring revenue, the Bank’s would have had recorded up to 48% growth compared to last year. The bank’s total equity recorded a growth of 13% and reached $446.5m.

Financial performance indicators and efficiency ratios recorded good levels in 2010 clearly reflecting the bank’s strong capital base with capital adequacy ratio and financial leverage ratio recording 20.32% and 15.87% respectively (compared to 12% and 6% according to the Central Bank of Jordan guidelines). Return on average owners’ equity recorded 23.7% and the return on average assets recorded 3.5%. Non-performing loans/ Gross credit facilities recorded 3.2%, one of best recorded rates in the local banking sector.

Mr. Kabartiti pointed out that although the repercussions of the financial and economic crisis continue, the Jordanian economy managed to hold off the decline and showed signs of improvement and positive growth in several sectors despite the overall economy not fully recovering. In light of these circumstances, the bank took some strategic measures to raise the productivity and efficiency levels while reducing cost of fund and remaining apprised of the current economic situation.

Throughout the year, JKB arranged loans and financing agreements with a number of local investors and companies in addition to offering a number of initiatives that included new products and services geared towards individuals in the hope to mitigate the effects of the prevailing weak demand for credit and to maintain the diversity and performance of the credit portfolio.

Mr. Kabariti affirmed that JKB will continue its efforts according to the guidelines and policies adopted during the past period and will deal with future developments openly, positively and with the usual prudence as well as continue to support the local and foreign investment and production sectors that contribute in stimulating the national economy and strengthen its capacity to cope with the current situation and continue to recover from the crisis.

The bank will work on seizing investment and financing opportunities while working on developing products and services tailored towards the corporate, business and retail sectors concentrating on the small and medium enterprises (SMEs) which contribute to increasing their business activities thus creating new job opportunities.

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Wednesday, February 2- 2011 @ 10:52 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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