Jordan Islamic Bank (JIB), a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), achieved profits before tax for the year 2013reached $91.26 million compared to $72.21 million at the end of 2012 with an increase of $19.05 million and with a growth of 26.3%, whereas net profits after tax reached $63.61 million compared to $51.48 million as at the end of 2012 with an increase of $12.13 million and with a growth of 23.8%.
Mr. Adnan Ahmad Yousif ,Chairman of the Board of Directors of JIB, President & Chief Executive of AlBaraka Banking Group (ABG) indicated that the Board of Directors recommended the Ordinary General Assembly to distribute cash dividends to shareholders at 15 % of the Bank’s capital and recommended the Extraordinary General Assembly to increase the bank’s capital from $176.5 million / share to $211.5 million / share by distributing bonus shares by 20% after amending the articles of association , the company’s internal system and completing the official approvals from Ministry of Industry and Trade and Financial Securities Commission However, it is decided to hold the meeting on Monday, 28th April. 2014.
Mr. Yousif said that the distinguished financial results that Jordan Islamic Bank (JIB) achieved during 2013 assure the safety of strategy and approach the Bank’s management follows to maintain an excellent position in Islamic banking with the commitment to the highest quality standards and facing several challenges and economic and political crises. In spite of the instability which surrounded the region, the bank was able to achieve good results, maintain a notable position in islamic banking and obtain many global prizes and credit ratings whose latest was affirming IIRA its credit ratings of JIB on the national scale at A+/A-1 (jo) andon the international scale with the foreign currency rating at BB+/A-3 and the local currency rating at BBB-/A-3and the outlook on the ratings is stable.IIRA also affirmed the sharia Quality Rating of AA(SQR) assigned to JIB for the fourth year respectively in an assertion of the executive management and employees’ efforts in implementing plans and administrative polices which seek to achieve best results and maintain the pioneer status in islamic banking industry appreciating the continual efforts and support of Central Bank of Jordan (CBJ)and cooperation of control and official authorities with Jordan banking sector and islamic banking.
Concerning the most prominent financial indicators of JIB,Mr. Musa Shihadeh, Vice Chairman, General Manager of the bank said the growth the bank achieved in its profits, praise be to Allah!, resulted from the continuation of growth in the different financial indicators of the bank which emphasizes the continuation of progress and development and reinforces its position in Jordan banking sector.
The total assets (including restricted investment accounts and Muqarada bonds) reached at the end of 2013 about $4.96 billion compared to $4.58 billion at the end of 2012 with an increase reached about $380.82 million with a growth of 8.2%. Thus, the bank’s share to the total assets of other working banks in Jordan reached at the end of 2013 about (8.2%).
Clients’ deposits (including restricted investment accounts and Muqarada bonds) reached at the end of 2013 about $4.50 billion compared to the same period in 2012 where it reached about $4.16 billion with an increase reached about $338.50 million with a growth of 8.1%. The bank’s share to the total saving schemes of other working banks in Jordan reached at the end of 2013 (11.5%).
Mr. Shihadeh asserted on the continuation of growth in several financing and investment activities of the bank in finance and investment (including restricted investment accounts and Muqarada bonds) which reached at the end of 2013 about $3.53 billion compared to about $3.48 billion at the end of 2012, accordingly, the bank’s share to the total balance of finance and investment of other working banks in Jordan reached at end of 2013 (13.2%).
Mr. Shihadeh added that joint investment profits before distribution reached at end of 2013 $234.27 million compared to $203.95 million at end of 2012, which helps in reinforcing the continuous profitability, improving the Bank’s operational performance strength and developing its financing and investment activities.
Mr. Shihadeh indicated that shareholders’ equity at end of 21013 reached about $360.37 million compared to $322.71 million at end of 2012 with a growth of 11.7%. The return on average equity (ROAA)before tax reached about 26.7% and after tax about 18.6%. Capital Adequacy Ratio (CAR) at the end of 2013 amounted to 18.50%according to the Islamic banks CAR standard approved by Central Bank of Jordan (CBJ) based on the standard issued by Islamic Financial Services Board (IFSB).
The return on average assets (ROAA) reached 1.43 %, efficiency ratio reached 38.76% and non performing finance (NPF) reached 4.35%.
Mr. Shihadeh expressed how much confident he is of Jordan Islamic Bank’s ability to achieve more distinguished results which consolidate its pioneer experience in islamic banking through its geographical reachin most governorates of the kingdom and its outstanding contribution to serve national economy, create new job opportunities, meet desires of people who are eager to deal with the bank , its endeavor to keep pace with the modern technologies to develop financial services offered to clients, render new islamic banking products such as Labbayk product for financing travels of Hajj and Umrah and Iqra Product for financing tuitions of schools and universities in addition to maintain a powerful financial position of the bank and increase its share in the banking market.
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 banking group providing its unique services in countries with a population totaling around one billion and is rated by Standard & Poor’s at BB+ (long term) / B (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 $1.5 billion, while total equity is at about $2 billion.
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 480 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.