JIB posts profits before tax of JD 75.4 million for 2018

Jordan Islamic Bank (JIB) has announced its financial results achieved at the end of 2018, where net profits before tax amounted to about JD 75.4 million and after tax about JD 49.8 million. However, this achievement reflects the success of JIB’s management policy in line with the strategic plans and prepared policies and managing the risks efficiently while maintaining a strong financial and credit position despite the various political and economic challenges surrounding the region. The Board of Directors decided in its meeting convened on 6/2/2019 to recommend to the Ordinary General Assembly, which will hold its meeting on 29/4/2019 to distribute cash dividends to shareholders for the financial year 2018 at 15% of the nominal value of the share and to the Extraordinary General Assembly to increase the capital of the bank by JD 20 million dinars / shares with 11.11 % as free shares. Thus, the capital of the bank has become JD 200 million instead of JD 180 million and the increase will be covered from retained earnings and voluntary reserve. Mr. Adnan Ahmed Yousif, Chairman of Jordan Islamic Bank, President & Chief Executive of Al Baraka Banking Group (ABG) Bahrain expressed how much pleased he is with the achievements of the Bank and praised all the efforts exerted by the Executive Management and all employees to achieve the best results and maintain the Bank's distinctive position among the Jordanian banking sector. He pointed out that JIB has been awarded several international prizes as the best Islamic bank in Jordan for 2018, in addition to strong credit and Sharia ratings that confirm the strength of the bank's credit and Sharia status. The two latest ratings were from Capital Intelligence (CI) and the International Islamic Rating Agency (IIRA). Thus enhancing the success of Jordanian Islamic banking experience, also affirming the success of the commendable efforts exerted by the Jordanian governmental bodies and institutions and the Central Bank of Jordan (CBJ) in enacting legislation and laws that support the Islamic banking process and take into account their particularity. Commenting on the financial results of the bank, Mr. Musa Shihadeh, General Manager of (JIB), said Our bank has been able to strengthen its position in the Jordanian banking sector, achieving more accomplishments that serve the Jordanian national economy and the local community and maintain the aspirations of its clients and shareholders to continue providing the best banking services and profitable returns. Accordingly, the bank's revenues at the end of 2018 amounted to about JD 218 million and the profits of the joint investment before distribution amounted to about JD 192 million. As a confirmation of the strength of the Bank's capital base, Shareholders' equity grew by 4.9 % to reach about JD 393 million compared to about JD 375 million at the end of 2017. The Return on Average Equity (ROAE) after tax was about 13%. Capital Adequacy Ratio (CAR) reached about 22.8% at the end of 2018, which exceeds the limit of 12% of the capital adequacy of Islamic banks issued by the Central Bank of Jordan. The return on average assets (ROAA) after tax was 1.2%. The bank also maintained its credit portfolio and asset quality where Non- Performing Finance (NPF) reached 4.2% and their coverage ratio 124%. The bank’s assets including (restricted investment accounts and investment proxy accounts (Muqarada bonds)) amounted to about JD 4.62 billion. Shihadeh said that, in line with the Bank's sectoral and geographic diversification policy to develop funds and investments for individuals, small and medium enterprises and companies while maintaining profitable returns, facilities granted for customers including (restricted investment accounts and investment proxy accounts (Muqarada bond)) grew by around 6.2% amounting to about JD 3.57 billion compared to about JD 3.36 billion at the end of 2017 with an increase of about JD 208 million. Reflecting the Bank's investment activities and its provision of sophisticated banking services that comply with the provisions and principles of Islamic Sharia, to enhance the confidence of the Bank's customers, clients' deposits and accounts including (restricted investment accounts and investment proxy accounts (Muqarada bond)) amounted to about JD 4.09 billion. “Noting that these results are preliminary and subject to the approval of the Central Bank of Jordan and concerned parties.”