MANAMA, 23 August 2007 -- Jordan Islamic Bank (JIB), one of the major overseas banking units of Bahrain-based Al-Baraka Banking Group, reported a net profit of JD15 million for the first half of 2007, with total assets rising to JD1.9 billion in the first six months of this year, the bank in a statement said yesterday.

Musa Shihadeh, vice chairman and general manager of JIB, said the bank has achieved a growth of 65.5 percent in its total profits in the first half of 2007 that reached about JD22.1 million before tax compared to JD13.4 million for the same period of the previous year. The total profits after tax reached JD15 million compared to JD9.7 million for the same period of the previous year, recording a growth of 55.4 percent.

He added that the bank's budget for the first half of 2007 reflect the bank's development and continuous progress enhancing its position in the banking sector in Jordan, noting that the total assets reached JD1.6 billion, recording a growth of 7.1 percent compared to end-2006.

The deposits recorded a growth of JD75 million, an increase of 6.1 percent, to JD1.3 billion compared to JD1.2 billion as of the end of the previous year. The increase in investment portfolios recorded a growth of 25.7 percent, reaching JD 209.6 million as of June 30 compared to JD166.7 million during the same period last year.

Accordingly, the total balance sheet of the bank (including specified investment, investment portfolios and investment by proxy accounts) reached about JD1.9 billion compared to JD1.7 billion as of end-2006, recording a growth of 9.2 percent, which reflects the bank's growth in various fields of investment.

Moreover, shareholders' equities increased by JD10.2 million to reach JD125.5 million as of June this year, compared to JD115.3 million as of the end of 2006, or a growth of 8.9 percent. Shihadeh said that JIB had signed an agreement with Western Union for money transfer services in a very secured and easy way to any destination in the world.

Established in 1978 as the first Islamic bank in Jordan, JIB is listed on Amman Stock Exchange and presently has a network of 65 branches and offices, in addition to the Bonded Service Center Office at the border. The bank also has an ATM network comprising of 59 ATMs linked to the Jordanian National Payment Network (JONET) and to Visa International network. The bank is one of the most important Islamic banks in Jordan and ranks as the 3rd biggest bank in the country in terms of total assets and deposits.

Albaraka Banking Group (ABG) is a Bahraini joint stock company listed on the Bahrain and Dubai stock exchanges and one of the well-known international Islamic banks. It has been rated by Standard & Poor's as BBB- with a short-term rating of A-3.

By Mehmood Rafique

© Arab News 2007