Bank of Jordan Announces its Financial Results for 2018, Expands its Regional Expansion and Recommends Cash Dividend Distribution of 18%
Amman – Jordan
Bank of Jordan announced its financial results for the year 2018, which are approved by the Central Bank of Jordan. The net profit attributable to shareholders of the bank reached JOD 41.5 million. The bank has maintained high performance levels regarding its return on average assets, which reaching 1.6%, and its return on average equity reaching 9.82%, which is one of the best in the Jordanian banking sector.
The bank’s net operating income (net interest and commission income) stood at JOD 135.3 million, a growth of 6.4% over the year 2018 compared to the previous year 2017, representing 95% of total income for 2018.
In his comments on the results, Mr. Shaker Fakhoury, Chairman of Bank of Jordan, said, “We have been working to sustain the bank’s positive outcome, which resulted from hard work and the implementation of best management and technical practices over the past years”.
By the end of 2018, most of the bank’s financial position items achieved positive performance. Customer deposits reached JOD 1.9 billion and the bank’s legal liquidity ratio was 118.57%. Credit facilities increased to JOD 1.47 billion (net). In terms of assets, the bank recorded JOD 2.6 billion, and shareholders’ equity of JOD 411.9 million. The capital adequacy ratio was 16.81%, higher than the 14.125% set for 2018 according to the requirements of Basel III and the regulatory authorities. The coverage ratio of provisions for non-performing loans was 109%, one of the highest in the Jordanian banking sector. Based on these results, Board of Directors of Bank of Jordan recommended to the General Assembly the distribution of cash dividends to the shareholders at 18% of the capital for 2018.
Mr. Fakhouri added that the Bank, through its vision and strategic plans to expand its regional reach, seizes the opportunities and positive changes that are expected to contribute to the economic recovery in the region, and aims at branching in the Iraqi market to expand its network and help meet the needs of its customers. The bank obtained the approval of the Central Bank of Jordan, and has applied to the Iraqi authorities for licensing. Based on these expected positive changes in the business, it is expected that the bank will record a new achievement in 2019, develop its products and services through a unique experience and a variety of channels to be a business partner, and continue to maintain advanced performance rates to enhance its competitive position in the countries in which it operates.
At the end of his speech, Mr. Fakhoury thanked the shareholders, the Board of Directors, the bank’s customers for their trust and support, and the bank’s management team and staff for their continued efforts to achieve these accomplishments. He also thanked all national institutions, especially the Central Bank of Jordan, for their role in supporting the economic sector under His Majesty King Abdullah II Bin Al Hussein.