Net profits of Jordan Islamic Bank rise by 53% and assets by 16% in 2008
Press Release Content
Jordan Islamic Bank, a subsidiary banking unit of Albaraka Banking Group B.S.C. (ABG), announced that it achieved a significant increase of 52.8% in its net profits in 2008 and increased its assets by 15.7%, customer deposits by 14.2%, financing operations by 21.4% and shareholders equity by 20.6%, according to a press release issued by the Bank yesterday.
The statement also mentioned that the bank's operations were not affected by the consequences of the global financial crises and stressed the bank's ability to withstand any probable adverse developments that may arise from the crises.
The statement indicated that the Bank achieved a net profit (before tax) amounting to JD50.06 million (US$70.6 million) in financial year 2008 compared to JD34.4 million (US$48.5 million) for 2007, representing an increase of 45.5%. Profits after tax amounted to JD35.14 million (US$49.6 million) compared to JD23 million (US$32.4 million) for 2007, representing an increase of 52.8%.
The rate of return on assets before tax was 2.7% compared to 2.15% as at the end of 2007, while return on assets after tax was 1.9% and earning per share after tax in 2008 was about 43.3% compared to 28.3% in 2007, which represents an increase of 52.8%. The return on average equity after tax was 23.87%, as a result of the growth in financing and investment operations during the year.
The balance sheet of Jordan Islamic Bank showed that the bank achieved noticeable improvements on all financial indicators during 2008 including profits, deposits, assets and investments. This contributed to an increase of 15.7% in assets to reach JD1.84 billion (US$2.6 billion) as at the end of 2008 compared to JD1.59 billion (US$2.2 billion) as at the end of 2007.
The total balance sheet footing of the bank including restricted investment accounts, investment account and wakala investment accounts amounted to about JD2.17 billion (US$3.1 billion) compared to JD1.93 billion (US$2.7 billion) as at the end of 2007, representing an increase of 12.4%.
This increase was invested in investment and financing operations, as such operations increased by 21.4% to reach JD1.11 billion (US$1.6 billion) compared to JD917.9 million (US$1.3 billion) as at the end of 2007, which showed that the bank's activities were growing in the different financing and investment areas.
Total customer deposits as at the end of 2008 amounted to about JD1.548 billion (US$2.2 billion) compared to JD1.355 (US$1.9 billion) for the same period of last year, representing an increase of 14.2%. Customer deposits plus managed accounts (restricted investment accounts, Mukaradah bonds and investment accounts managed on behalf of clients) amounted to about JD1.84 billion (US$2.6 billion) as at the end of 2008 compared to JD1.65 (US$2.3 billion) for the same period of last year, representing an increase of 11.4%. This reflects the customers' confidence in all banking operations of Jordan Islamic Bank.
Shareholders equity increased by 20.6% from JD133.5 million (US$188.1 million) in 2007 to JD161 million (US$227.1 million) in 2008, which confirms the soundness of the bank's capital base.
On this occasion, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Jordan Islamic Bank and President and Chief Executive of Albaraka Banking Group, said that Board of Directors approved the balance sheet and closing accounts of 2008 and proposed that they be submitted to the Ordinary General Meeting which is scheduled to be convened on 29.4.2009 and to distribute dividends of 15% of the Bank's capital to the shareholders. Mr. Adnan Yousif added that the Bank continued to implement its corporate governance plans to improve its results and operations to the best interest of the shareholders and customers.
Mr. Adnan Yousif said that despite of the adverse implications of the global financial crises that impacted many of the banks in the region, increased competition in the Jordanian market and the rapid steps taken towards achieving financial and economic openness, Jordan Islamic Bank was able to achieve excellent results.
This excellent performance was the result of the hard work of the executive management and all employees of the Bank and the strong support that the parent companies, Albaraka Banking Group, which contributed to enhancing the bank's status and increase its market share. The bank continues to enjoy the confidence of both of its corporate and individual customers alike. We are very proud of the these results and the market position that the bank holds.
As for the future, Mr. Adnan Yousif said that Jordan Islamic Bank would continue to maintain its rate of growth and seek to deliver balanced returns for its shareholders, depositors and employees and that it would work towards increasing its market share through offering a complete range of competitive products and expanding its branch network.
On his part, Vice Chairman of the Board of Directors and General Manager of Jordan Islamic Bank Mr. Musa Shihadeh said that the results achieved by Jordan Islamic Bank were a clear indication of the success of Islamic banking and that Islamic banks can withstand all challenges and difficulties.
Mr. Shihadeh added that the Bank was implementing plans and strategies to expand its Ijarah Muntahia Bittamleek financing operations and as well as its programs for professionals, craftsmen and small enterprises. The Bank also continued to modernize and upgrade its systems so as to meet the growing needs of the Bank for modern banking systems and technologies. It is through these efforts that the Bank were able to hold a leading position in the local market by expanding its services and financing activities.
He further stressed that the Bank's strategy was based on a number of principles including the need to maintain the financial position of the Bank, increasing its market share and implementing a package of banking policies to enable the Bank keep abreast of the developments that the Islamic banking industry is currently witnessing.
LATEST PRESS RELEASES
Healthcare: read more »
Real Estate: read more »
Travel and Tourism: read more »