Jordan Islamic Bank (JIB) had achieved distinguished financial results during 2012 with net profits before tax reached $72.21 million at end of 2012, an increase of $16.22 million.
The bank said its net profits after tax reached $51.48 million compared to $39.92 million at the end 2011 and with an increase of $11.57 million and with a growth of 28.7%.
The Bank’s Board of Directors recommended the Ordinary General Assembly to distribute cash dividends to shareholders at 15% of the Bank’s capital.
The Bank reinforced its position in Jordan banking sector where the Bank has advanced its capital base by upgrading its capital to USD/share 176.30 million during 2012 and distributing bonus shares to shareholders at 25%. Shareholders’ equity at end 2012 reached about USD 322.28 million compared to about $291.82 million at end 2011 with a growth of 10.5 %.
The rate of return on average shareholders’ equity before tax reached about 23.5 % and after tax about 16.74 %. Capital Adequacy Ratio (CAR) reached at the end of 2012 about 19.56% according to capital adequacy standard of Islamic banks issued by Central Bank of Jordan (CBJ) based on the standard issued by Islamic Financial Services Board (IFSB).
Joint investment profits before distribution reached about $ 204.51 million compared to $155.15 million distributed at end of 2011 which helps in reinforcing the continuous profitability, improving the Bank’s operational performance and developing its financing and investment activities.
Adnan Ahmad Yousif, Chairman of the Board of Directors of JIB, President and Chief Executive of Al Baraka Banking Group (ABG) expressed how much pleased he is with the efforts made by the Bank’s executive management and its staff. He asserted that the Bank has benefited from Jordan economic performance, financing many economic sectors, expansion in finance and investment portfolio which reflects on the operational results and profitability of the Bank.
Yousif indicated that the Bank works on developing and implementing many internal procedures such as operational risks systems, anti money laundering, new systems of credit rating, finalizing banking operations systems. It has finalized as well the procedures demanded to render platinum card for the most prominent clients at the Bank and Al Baraka Banking Group’s units.
“The Bank intends to continue inaugurating branches and cash offices during 2013, so their total number will be 84. The Bank increased as well the number of ATMs in the kingdom to reach 160. JIB intends as well to keep average of expansion in branches during the coming four years where the Bank will have 78 branches and 22 cash offices, or what is totaled to 100 at the end of 2017.”
Musa Shihadeh , Vice Chairman and General Manager of JIB, said the results the Bank achieved make us proud of the Bank’s financial solvency , the strength of its capital base, the safety of its credit and investment portfolio and the increase in its customer’s expansive base.
Shihadeh added that the achievements the Bank obtained assert its pioneering position and the success of its strategy which is an extension of long years placed it in a notable stage in the field of Islamic banking business through ensuring and developing Islamic banking services which meet clients’ needs based on Islamic sharia principles.