Ordinary & Extraordinary General Assembly of JIB for the year 2018

Distribute 15 % cash dividends and 11.11% bonus shares. Increase the capital of the bank to JD 200 million. Election of a new BoD for the session 2019-2023. Mr. Musa Abdelaziz Shihadeh, Chairman Dr. Hussein Said, General Manager During its 40th ordinary meeting held on Monday April 29th, 2019, presided over by Mr. Adnan Ahmad Yousif, Chairman of the Board of Directors , in the presence  of the representative of companies’ controller  Mr. Mohammad Abu Zeyad and the representative of the Central Bank of Jordan (CBJ) Mr. Husam Al Uwaisi and after the satisfaction of the legal quorum through the attendance of shareholders by about (77.5%), the General Assembly of Jordan Islamic Bank (JIB) has approved distribution of 15% of the paid up capital as cash dividends after approving the Board of Directors’ report, the annual balance sheet and the profit and loss accounts for the year ended on December 31-2018, as well as the Bank’s future plan, Board of Directors’ discharge of the previous fiscal year and listening to the minutes of the General Assembly’s previous ordinary meeting and Sharia Supervisory Board and auditors’ reports. In the meantime, a Shari'a Supervisory Board has been appointed for a period of four years (2019-2023) comprising Dr. Mahmoud AlSartawi, Dr. AbdelSattar Abu Ghuda, Dr. “Mohammad Khair” Mohammad Salem Al-Eisa and Dr Abdelrahman Alkilani. Messrs. Ernest & Young Jordan, were appointed as auditors  The General Assembly of JIB decided to elect a new Board of Directors for the next four years 2023-2019, which consists of : H.E Mr. Musa Abdel-Aziz Shihadeh AL Baraka Banking Group, represented by: H.E. Mr. Hamad Abdallah Al-Eqab. H.E. Mr. Houd Hashem Ahmad Hashem. H.E Mr. Adnan Abdalla AlBassam. H.E Mr. Nour “Mohammad Shaher “  Mahaini. H.E Mr. Salem Ahmed Jameel AlKhazaleh. H.E Mr. Ayman Abdel-Karim Bashir Hatahat . H.E. Mr. Issa Haidar Issa  Murad. H.E Dr Nabeeh Ahmed Mahmoud Salameh Alzinat. H.E Miss Malak Fawzi Ghanem. H.E Mr. Saleh Jacob Mohammad Hussein . The Board of Directors decided to elect His Excellency Mr. Musa Abdelaziz Shihadeh as Chairman of the Board of Directors and to elect His Excellency Mr. Hamad Abdallah AlEqab as Vice Chairman of the Board, a representative of Al Baraka Banking Group. In view of the election of His Excellency Mr. Musa Abdelaziz Shihadeh, General Manager of Jordan Islamic Bank, as a member in the Board of Directors and in accordance with the provisions of the Corporate Governance which prevent the joining between the membership of the Board of Directors of the Bank and the position of General Manager, it has been decided to accept the resignation of Mr. Musa Shihadeh from the post of CEO / General Manager as of Tuesday 30/4/2019 and appoint Dr. Hussain Said Saifan, Chief Executive Officer / General Manager of the Bank as of Wednesday morning, 1/5/2019. Then, General Assembly held its extraordinary meeting and agreed to increase the Bank’s capital by JD 20 million/ share for 11.11% as free shares, amend the fifth item in the Article of Association. Thus, the Bank’s capital has become JD 200 million/ share instead of JD   180 million/ share and the increase will be covered from retained profits and voluntary reserves. Mr. Adnan Ahmed Yousif expressed his thanks and appreciation to Mr. Musa Shihadeh for his outstanding efforts in the management of the Bank throughout his career for nearly forty years., during which the Bank achieved good results and occupied a prominent position in the Islamic Jordanian and international banking arena in support of the national economy and the local community, wishing success to the new board of directors and executive management to continue the success journey of JIB. He indicated that during the year 2018, Jordan Islamic Bank continued to deepen the experience of Islamic banking, maintaining its position in the Jordanian-banking arena, despite the difficulties and challenges facing the local economy and the rapid changes.in the regional and international environments. It worked on Enhancing the confidence and satisfaction of its clients and keeping pace with all new developments in the banking industry and its technologies. Thus, the bank was able to achieve more accomplishments by winning international awards for several years in a row, such as Word Finance, Banker, Global Finance, Emea Finance, Islamic Finance News and others, as well as credit and sharia ratings from global rating agencies such as Fitch, Capital Intelligence, Standard & Poor's and IIRA. He commended the efforts exerted by the executive management, employees and sharia supervision board at the bank and all the supporters of the bank's business. He also thanked the Central Bank of Jordan (CBJ) and the official and supervisory bodies for their active role and their understanding of the particularity and nature of the work of Islamic banks in issuing laws and regulations that contribute to the business of Islamic banks, the Jordanian banking system and the national economy. For his part, Mr. Shihadeh commended the efforts of Mr. Adnan Ahmed Yousif during his tenure as Chairman of the Board of Directors for more than ten years. Thus, the Bank achieves outstanding results at various levels and emphasizes the complete harmony between the Board of Directors and the Executive Management to achieve the Bank's strategy to meet various challenges and achieve the best accomplishments.  As for the bank's annual balance figures as of 31/12/2018, Mr. Musa Shihadeh, said despite all the surrounding circumstances, the Bank has succeeded in achieving good growth in most of its economic and social activities and maintaining its share of the Jordanian banking market for 2018. The total balances of financing and investment at the Bank/ total direct credit facilities of other working banks in Jordan reached about 13.7%. Total Balances of savings schemes at the Bank/ total client deposits at other working banks in Jordan reached about 12%. Total Assets at the Bank/ total Assets of other working banks in Jordan reached about 9.1%. During 2018, the bank achieved profits before tax that amounted to about JD   75.4 million, while profits after tax amounted to about JD 49.8 million. The profits of the joint investment before distribution amounted to about JD 192 million and the bank's revenues amounted to about US$ 218 million. Growth in shareholders’ equity reached about 4.9%, amounting to about JD   393 million compared to about JD 375 million at end of 2017 .The Return on Average Equity (ROAE) before tax was about 19.6% after tax reached about 13%. Capital Adequacy Ratio (CAR) at the end of 2018 amounted to about 22.8. % according to the Islamic banks CAR standard approved by the Central Bank of Jordan (CBJ) and it is more than the levels required by the CBJ which reaches 12%, as a confirmation of the strength of the Bank's capital base. The bank also maintained the integrity of its credit portfolio and its assets quality where the Non- Performing Finance Ratio (NPF) reached 4.2% and their coverage ratio 124%. The total assets in 2018 including (restricted investment accounts and investment by Al wakala  bi Istithmar (investment portfolio))  amounted to about JD  4.618 billion . The total balances of saving schemes (including restricted investment accounts and investment by Al wakala  bi Istithmar (investment portfolio)) amounted to around JD 4.086 billion, distributed to about (942) thousand active accounts . The total balances in 2018 of financing and investments (including restricted investment accounts and investment by Al wakala  bi Istithmar (investment portfolio)) amounted to about JD   3.570 billion, distributed to 223 thousand transactions compared to around JD   3.363 billion at end of 2017 distributed to 225 thousand transactions. Shihadeh affirmed that the bank is interested in delivering its distinguished services to various economic and housing complex easily by opening new branches and cash offices or converting offices to branches or moving branches to new locations. Thus, the Bank’s network of branches and offices totaled (76) branches and (29) cash offices at the end of 2018 and (77) branches and (30) offices during the first quarter of 2019. As well as continuing to provide services during the official holidays, on Fridays and Saturdays and in the evening in some branches and offices of the bank. The Bank pays attention to human resources through rehabilitation them and holding continuous training courses to improve the performance of all employees that amounted to 2405 employees. The Bank continued to provide incentives to its clients through distributing awards to holders of Savings Accounts with a total value of around JD   (150) thousand and distributing prizes to users of bank cards, which amounted to JD   235000 during 2018. The Bank has issued its seventh report on social responsibility and sustainability for 2018 which is considered an integral part of the Bank’s programs and initiatives which serve society continually through providing monetary support for many activities and initiatives in various fields such as donations, AlQard AlHasan, sponsor conferences , scientific research , professional training, finance professionals and craftsmen, Mutual Insurance Fund, energy and environment and interaction with local community in addition to other activities. During 2018, Shihadeh indicated that the Bank accomplished further developments and updating in the field of banking techniques, most notably: the launch of more services provided through the application of (Mobile Banking), such as inquiries about the client's financing and financial transfer between accounts within Jordan. Renewing the certificate of accreditation for the protection and security of Payment Card Industry, Data Security Standard (PCI-DSS).Implementing business policies and procedures to meet the requirements of Governance and Management of Information and Related Technologies (IT Governance) according to the standards (COBIT 5). Issuing and printing cards immediately in branches (issuing the card to the customer for the first time).Apply systems to upgrade the protection against cyber-attacks and malware. Completion of the data center project in all its components, including the transfer and operation of all network equipment, main servers and central storage units to work simultaneously with the primary data center. Development, innovation, and accomplishment of a number of systems and products, installing and operating new Automated Teller Machines (ATMs) in 2018, by this the Bank’s network of ATMs reached (232) machines, with a share of (13.6%) of all ATMs operating in the Kingdom, all connected to client accounts, the Middle East Payment Services (MEPS), and the Jordanian Automated Teller Machines Network (JONET), which comprises nearly (1,700) ATMs. In addition, the Bank’s network of ATMs is linked through JONET to the International Visa Network outside Jordan. Concerning the future plan of the Bank for the year 2019, Shihadeh said that it includes: continue the introduction and development of new banking electronic services, expand individuals’ financing grants on Murabaha or Ijara Muntahia Bittamleek or Istisna’a' basis, expand SMEs projects financing grants, issue/ participate in Islamic instruments tradable in the Exchange, while continue the financing of the government needs by using this instrument and through the direct finance by Murabaha, provide new financing products meeting the banking market demands and needs after obtaining the Sharia (legal) approval, keeping current with the developments in banking technologies, increasing the capacity of automated systems used in order to improve efficiency of services and banking transactions provided to clients, continue to implement the Digitalization Plan and develop staff competencies and skills. Shihadeh indicated that the branching plan has implemented this year by opening a new branch and new office, another office will be opened and three offices will be converted to branches., installing and operating new ATMs and replace the old ones, develop and improve their operating management system., enhancing corporate governance practices, continue the application of Basel II and Basel III requirements, keeping on the continuous endeavor to improving the quality of assets, risk management, and compliance control, continuing to undertake social responsibility in different areas ,enhancing the financial inclusion by expanding the umbrella of beneficiaries of the financial services with high quality, in order to contribute to the sustainable development along with the financial and social stability and increasing the number of the working force and reducing poverty rates and women empowerment, continuing to make available alternative energy in the sites of the Bank, by generating electrical power using solar cells , making available to our clients the products and services provided by Al Baraka Banking Group (ABG), and ensuring that services and products provided by our Bank are available to the Group's Banks' clients, all with coordination and cooperation with ABG management.