Mr. Shaker Fakhouri, the Chairman and CEO of Bank of Jordan, annonced the Business Results for the Year 2014 which were endorsed from the Central Bank of Jordan. The results show that net profit attributable to shareholders increased to JD 47.1 million, up from JD 40.7 million in the prior year. As such, the net profit grew by 15.7% for the year.
As a result, the Bank continued to diversify its sources of revenue and implement the latest financial systems related to asset and liability management. Further, on the sources of funds side, customer deposits rose to JD 1,628.5 million, growing by JD 84.3 million or 5.5%. Similarly, the credit portfolio grew by JD 60.3 million or 5.8%, compared to the prior year, to reach JD 1,100.6 million. Finally, assets grew to JD 2,190.2 million, increasing by 5.5%, and shareholder equity grew by 5.9% year-over-year to reach JD 335.7 million.
Bank of Jordan worked diligently to earn the trust of its customers by delivering on customer requirements and needs and working together as partners to deliver banking solutions of the highest standard.
As for key financial indicators relating to quality and efficiency of asset management and financial stability, the capital adequacy ratio for the Bank was 16.98%, well above the Central Bank of Jordan mandate of 12% and the Basel II requirement of 8%. The ratio of nonperforming loans (NPLs), after deducting suspended interest, to total loans dropped to 7.21% from 8.72% in the prior year, while the ratio of NPLs to total assets dropped to 3.9% in the year 2014 from 4.8% in the prior year, both ratios indicating the improving quality of the Bank of Jordan credit portfolio. Additionally, the Bank has fully provisioned for nonperforming loans, with the ratio of such provisions rising to 101.9% from 95.4% a year earlier. Such achievements enhance the ability of the bank to expand its credit offerings to its customers.
More significantly, operating efficiency improved as well, with net interest income revenue on assets rising to 4.2%, up from 4.1% in 2013. Further, the net profit attributable to bank shareholders total income rose to 37.8% in 2014, up from 35.6% a year earlier.
Adding to that, return on assets rose to 2.2% this year from approximately 2% in 2013, hence marking one of the best ratios in the banking industry. As a result, return on shareholder equity rose to 14.4%, compared to 13.7% in the previous year. This was achieved while the Bank maintained higher liquidity ratios than what is required by the regulators, with the banking group achieving a ratio of 140.12% for 2014, compared to 138.17% in 2013.
Mr. Fakhouri further added: Building on these significant achievements in performance, quality, capital adequacy, liquidity and efficiency, the Bank of Jordan Group is diligently working on feasibility studies for regional expansion. Regarding Palestine branches, they achieved positive results compared to the previous year.
Mr. Fakhouri announced that the Board of Directors, based on the financial results for the year 2014, is recommending that the General Assembly approves the distribution of cash dividends at the rate of 20% of the share face value, for a total of JD 31.02 million, as Bank of Jordan adopted the continuity of the cash dividends policy to its shareholders.
At the end, Mr. Fakhouri asserted that Bank of Jordan is keen on achieving market leadership and continued growth and preserving high rankings in the market. Also, he extended his gratitude to Bank of Jordan clients and shareholders for their continued trust and support, and to Bank of Jordan team for their continued efforts to achieve the Bank's goals.