Bank of Jordan's financial results showed that net income attributable to shareholders rose by 1.4% to JD41.4 million in 2016 compared to the year before.
Commenting on the results, Chairman of the Board Shaker Fakhouri noted that the Bank continued to perform well despite persistent economic and political challenges. "Capitalizing on its huge capabilities and a solid reputation locally and regionally, the Bank managed to realize outstanding results", he noted. Efforts were also largely focused on applying best practices in fund management guided by market variables and developments, added Fakhouri.
Total income reached JD127.4 million, up 1.8% when compared to 2015. Net interest and commission income, in the meantime, rose by 4.4% to JD116.2 million, constituting 91.2% of total income in 2016. This compares with a share of 88.9% of total income in 2015.
Fakhouri noted that key financial ratios for 2016 reflected the Bank's financial strength. The capital adequacy ratio stood at 20.82% in 2016 - higher than the 8.625% minimum set by Basel III and the 12% minimum set by the Central Bank of Jordan (CBJ), he explained.
Thanks to a prudent credit risk management policy, non-performing facilities to total facilities (net of suspended interest) dropped from 5.94% in 2015 to 4.59% in 2016, said the Chairman. The coverage ratio of provisions for non-performing loans (net of interest in suspense and cash margins), which rose to 112.2% from 101.2% in 2015 is among the highest in the local banking sector, stated Fakhouri. In light of the unfavorable political and economic conditions in the Syrian market, the coverage ratio for Bank of Jordan-Syria was around 100%. The legal liquidity ratio for Bank of Jordan Group exceeded the minimum set by regulatory authorities, settling at 127.25%, as of 31/12/2016, the Chairman clarified.
Most components of the balance sheet came in positive in 2016, he said. Customer deposits saw a rise of 2.7% year-on-year, settling at JD1,606.9 million, while the net credit portfolio grew by 7.3%, reaching JD1,226 million. Assets, in the meantime, were higher by 6%, clocking in at JD2,338.8 million, and shareholder equity grew by 11.9% to JD405.4 million as of 31/12/2016, added Fakhouri.
During the meeting, the Chairman announced that the board recommended to the General Assembly to pay cash dividends of 18% of capital, (equal to JD36 million), and to retain the remaining earnings.
At the conclusion, Fakhouri stressed the Bank continues to look for lucrative investment opportunities in the various markets - despite persistent regional challenges. The Bank also continues to execute projects and action plans in its quest for improving the level of customer service. With his term in office coming to an end, Mr. Fakhouri thanked the Board for their sustained efforts and support for the management. He also commended the extensive efforts and contribution of the various official institutions, chiefly the CBJ - under the directives of His Majesty King Abdulla II.