Jordan Islamic Bank net profit up 26pc
Manama, March 28, 2014
Jordan Islamic Bank (JIB), a subsidiary banking unit of Bahrain-based Al Baraka Banking Group, registered a growth of 26.3 per cent in profit before tax for last year at $91.26 million, compared to $72.21 million the previous year.
The net profit after tax saw a growth of 23.8 per cent to $63.61 million when compared to $51.48 million as at the end of 2012, reported the Gulf Daily News, our sister publication.
Al Baraka Banking Group president and chief executive and JIB chairman Adnan Ahmed Yousif said the board of directors recommended the distribution of cash dividends at 15 per cent of the capital and an increase in the bank's capital from $176.5 million to $211.5 million by distributing bonus shares by 20 per cent.
Yousif said the financial results achieved assure the safety of the bank's strategy.
In spite of the instability which surrounded the region, the bank was able to achieve good results, maintain a notable position in Islamic banking and obtain many global prizes and credit ratings.
It included IIRA affirming the credit ratings of JIB on the national scale at A+/A-1 (jo) and on the international scale with the foreign currency rating at BB+/A-3 and the local currency rating at BBB-/A-3 and the outlook on the ratings is stable.
IIRA also affirmed the Sharia Quality Rating of AA (SQR) assigned to JIB for the fourth year.
JIB vice-chairman and general manager Musa Shihadeh said the growth achieved resulted from growth in different financial indicators.
The total assets (including restricted investment accounts and Muqarada bonds) reached about $4.96 billion at the end of last year from $4.58 billion at the end of 2012 with a growth of 8.2 per cent.
Clients' deposits (including restricted investment accounts and Muqarada bonds) reached about $4.50 billion compared with the same period in 2012 where it hit $4.16 billion with a growth of 8.1 per cent.
Financing and investment activities of the bank (including restricted investment accounts and Muqarada bonds) amounted to $3.53 billion at the end of last year, compared with $3.48 billion in 2012.
Shihadeh added joint investment profits before distribution were $234.27m compared with $203.95m at end of 2012, which helps in reinforcing the continuous profitability, improving the bank's operational performance strength and developing its financing and investment activities.
Shareholders' equity was $360.37 million compared with $322.71 million at the end of 2012 with a growth of 11.7 per cent.
Return on average equity before tax was 26.7 per cent and after tax about 18.6 per cent. Capital Adequacy Ratio (CAR) at the end of last year was 18.50 per cent according to the Islamic banks CAR standard approved by Central Bank of Jordan based on the standard issued by Islamic Financial Services Board.
The return on average assets was 1.43 per cent, efficiency ratio was 38.76 per cent and non performing finance was 4.35 per cent, the report added.-TradeArabia News Service