AMMAN -- Net operational earnings dropped by 21.1 per cent at Jordan Ahli Bank last year, reaching JD75.99 million from JD96.29 million in 2005.
According to the bank's 51st annual report, net income from interest fell by 19.7 per cent to JD47.29 million (JD58.92 million in 2005), net commission edged down by 6.5 per cent to JD14.74 million (JD15.77 million) and total earnings from sources other than the two mentioned plunged by 35.3 per cent to JD13.97 million (JD21.61 million).
Net income from interest accounted for 62.2 per cent of net operational earnings whereas the share of net commissions was 19.4 per cent leaving 18.4 per cent for the remaining income.
Although operational expenditures were down by 26.5 per cent to JD45.59 million (JD61.99 million) as a result of a sharp reduction in the diminution provision for direct credit facilities, net pretax profit came at JD30.41 million compared to JD34.30 million net pretax profit in 2005.
Notwithstanding a decline in net after-tax profit from JD25.43 million in 2005 to JD20.23 million at the end of last year, the bank's general assembly approved the recommendation of the board of directors to distribute JD16.50 million in cash dividends to shareholders at a rate of 15 per cent.
The balance sheet as of December 31, 2006 showed a 4 per cent or JD66.19 million increase in total assets to JD1.74 billion from JD1.67 billion at the end of 2005.
Of the total, net direct credit facilities amounted to JD621.67 million, an 11 per cent rise over the JD560.15 million figure in 2005. Of the total, JD151.99 million were classified as nonperforming loans, or 20.57 per cent of the overall facilities at the end of 2006.
The investment and securities' portfolio was also higher by 19.1 per cent from JD201.84 million to JD240.47 million at the end of last year.
The net credit facilities and the investment portfolio accounted for 49.5 per cent of total assets. Cash on hand and deposits at banks totalled JD751.88 million accounting for 43.2 per cent of total assets.
On the liabilities side of the balance sheet, deposits of clients, banks and financial institutions, as well as cash collaterals amounted to JD1.46 billion accounting for 95.7 per cent of total liabilities. Noninterest bearing deposits were put at JD263.93 million or 24.21 per cent of total deposits whereas frozen deposits were given at JD34.13 million.
The bank employs 1,265 workers at headquarters and 43 branches in Jordan and 300 employees at main offices and 14 branches in Lebanon and Cyprus.
The bank listed its competitive position as 4th in terms of capital, 3rd in terms of shareholders' equity and also assets.
Main shareholders' owning 5 per cent equity or more were listed as: Abraaj Capital/Dubai, (10.71 per cent), Kuwait Investment Authority (6.32 per cent), Jordan Investor Centre (6.12 per cent), Jordan Worsted Mills Company (6.06 per cent) and the Social Security Corporation (5.31 per cent).
By Samir Ghawi
© Jordan Times 2007
