- Al-Salem: Group assets grew to JD6.5 billion by the end of June and shareholder assets rose to approximately JD600 million
- Al-Salem: A vision of economic modernization is essential to achieving sustainable growth
Amman, Jordan: Capital Bank Group has announced half-year net profits for 2022, the highest since its establishment that are equal to the total profits of 2021, with profits surging by 40% compared to the same period of 2021. According to the initial financial results, the group’s net profits totaled JD60.2 million by the end of June 2022, compared with JD43 million for the same period of last year.
Assets showed an increase, registering 50% or JD2.2 billion, buoyed by the acquisition of Société Générale Bank-Jordan, reaching JD6.5 billion compared with JD4.3 billion at the end of 2021. Net credit facilities rose to JD3.2 billion by the end of June 2022, compared with JD2.1 billion at the end of 2021, a growth of 49%. Client deposits showed an increase by the end of June 2022, reaching 57.6% or JD4.4 billion, compared with JD2.8 billion at the end of 2021. Initial statements also showed an increase in shareholder net assets by 62.4%, reaching JD589 million, compared with JD363 million for the same period in 2021.
Chairman of Capital Bank Group Bassem Khalil Al-Salem spoke of his pleasure about the financial results and achievements of the group in the first half of 2022, conveying his appreciation for the efforts of the group’s entire team, which has been the driver of change and continued advancement.
Al-Salem went on to add that, over the past few months, Capital Bank Group had initiated a number of measures to further its expansion both locally and regionally. The group recently finalized a deal with the Saudi Public Investments Fund, one of the largest and most influential sovereignty funds in the world, which saw the fund subscribe to 23.97% of the Capital Bank’s shares, valued at JD131.2 million, a move that will have a positive effect on the group’s performance and will allow it to enter new markets and expand its future business. It will also provide the group with a network of corresponding banks on a regional and global level, as well as allow it to continue providing the newest and most innovative banking services and products in Jordan and Iraq.
Al-Salem went on to add that the Saudi Public Investments Fund’s contribution to Capital Bank has been received in full, and the fund is expected to announce the names of the two people who will serve as its representatives on the group’s board of directors, after acquiring the necessary approvals from regulatory authorities.
Al-Salem also said that Capital Bank has finalized its acquisition of Société Générale Bank-Jordan, the second such action taken by Capital Bank in less than 12 months, following its acquisition of Bank Audi in Jordan and Iraq in 2021.
Speaking about Jordan’s economic situation, Al-Salem said the structural reforms initiated over the past years make up the foundation that will allow the country to fulfill the economic modernization vision set out by His Majesty King Abdullah in June 2022. According to Al-Salem, they will also be the catalyst for the achievement of comprehensive economic development, putting Jordan on the path to sustainable development according to international organizations, and reducing public debt.
Capital Bank CEO Dawod Al Ghoul said that the financial results for the first half of 2022 are in line with the group’s ambitious strategy. Net operating profits increased by 45% compared with the same period of 2021, positively affecting return on equity, which rose to 20.6%, after excluding non-recurring items. He added that the bank also improved revenues and proficiently restructured its capital, especially with the issuance of $100 million of perpetual bonds at the beginning of this year in a listing at NASDAQ Dubai, making Capital Bank the first Jordanian bank to make such a listing at the region’s international stock market.
National Bank of Iraq’s financial results also showed growth in net profits after tax of JD7.9 million at the end of June 2022, compared with JD4.2 million in the same period of 2021.
Commenting on the results achieved by Capital Investments, Al Ghoul said that net profits in the first half of 2022 grew to JD2.8 million, an increase of 38%, which was supported by the increase of managed assets that reached $526.6 million, as well as the rise in financial brokerage accounts by 20% compared to 2021.
According to Al-Ghoul, Capital Bank continues to implement its digital transformation strategy by offering the most innovative online services according to international best banking practices. In 2022, Blink digital bank was launched in record time, a clear reflection of Capital Bank’s commitment to keeping pace with the latest technological developments in the world of banking.