Jordan Islamic Bank achieves $124.9mln net profit before tax

MANAMA: Jordan Islamic Bank (JIB), a subsidiary of Bahrain-based Al Baraka Banking Group (ABG), has achieved net profit before tax of about $124.9 million at the end of last year, compared with $106.3m at the end of 2018, with a growth rate of 17.4 per cent.

Profits after tax were $76.6m compared with $70.2m for 2018, with a growth rate of 9.1pc.

JIB chairman Musa Shihadeh expressed his pride in the growth rate achieved by the bank.

The bank’s board of directors has been distributing cash profits to shareholders at the rate of 15pc of the par value of the share.

ABG president and chief executive Adnan Ahmed Yousif said, “We congratulate our banking unit in Jordan for these distinguished results.”

According to JIB chief executive and general manager Dr Hussein Said, growth in various financial indicators is clearly reflected in the results of the bank.

Assets including specified investment accounts and Wakala investment accounts (investment portfolios), saw growth of 7.6pc to $7 billion, compared with $6.5bn at the end of 2018.

Facilities granted to customers, including specified investment accounts and investment Wakala accounts (investment portfolios) grew by 7.5pc to $5.4bn compared with $5bn at the end of 2018 with an increase of $375m.

This confirms the bank’s interest in diversifying its investments and financings, developing and distributing them geographically among different sectors, including individuals, companies, and small and medium enterprises, within a clear and specific policy.

The bank also continues to provide banking products and services that keep pace with the latest technological developments and are compatible with the provisions and principles of Sharia.

Deposits and accounts including specified investment accounts and investment Wakala accounts (investment portfolios)) grew by 7.6pc to $6.2bn compared with $5.8bn at the end of 2018.

Shareholders’ equity grew by 7.2pc to $587m compared with $555m at the end of 2018.

The return on average equity after tax was about 13.34pc with the bank’s capital increasing to $282m during 2019.

Capital adequacy ratio reached 22.6pc at the end of 2019, which exceeds the limit of 12pc of the capital adequacy for Islamic banks required by the Central Bank of Jordan.

The return on average assets after tax was 1.26pc; where the coverage ratio of non-performing finance reached 122.4pc in continuation of the bank’s efforts to keep the quality of its assets.

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