JIB posts profits before tax of JD 83.7 million for 2016

By the end of 2016, Jordan Islamic Bank (JIB) achieved profits before tax in an amount of JD 83.7 million, compared with JD 74.7 million in 2015; with a growth of nearly 12.1%. Net profits after tax reached JD 54 million compared to JD 48.7 million during 2015; with a growth of nearly 11%. Mr. Adnan Ahmed Yousif, Chairman of JIB ,President & Chief Executive of Al Baraka Banking Group (ABG) / Bahrain expressed how much pleased he is with the good results the bank achieved during 2016, commending the efforts exerted by the executive management, Board of Directors and employees of the bank to keep on applying the strategic plan , achieve further growth and reap many global prizes and ratings including the awards of strongest Islamic retail bank in Jordan , the best banking group and best Islamic bank in Jordan for 2016 in addition to reaffirming the Sharia Quality Rating AA(SQR) for the eighth consecutive year by the Islamic International Rating Agency (IIRA) for the bank’s high degree of adherence to Sharia principles and provisions through the Sharia governance infrastructure instituted at the bank that is largely in accordance with the guidelines provided by the Central Bank of Jordan (CBJ) in the Code of Corporate Governance (CCG) for Islamic banks in affirmation of JIB’s ability to maintain a distinguished position among Jordanian and Islamic banks , commending the efforts of the CBJ , official institutions and organizations supporting the Jordanian banking sector and Islamic banking.. With regard to the key financial indicators the bank achieved by the end of 2016, Mr. Musa Shihadeh, CEO – General Manager of JIB  said that the growth rates achieved assert the safety of approach, efficiency, commitment to the bank’s mission , sustainability , continuation of growth in compliance with principles of governance and confront risks to reflect clearly on the most financial indicators of the bank. However, the growth in total assets including ( restricted investment accounts, Muqarada bonds and investment  by proxy ) reached around 8 % amounting to about  JD 4.50  billion compared to about JD 4.17 billion at the end of 2015 with an increase of  JD 333 million. The growth in facilities granted for customers including ( restricted investment accounts, Muqarada bonds and investment  by proxy ) reached around 3% amounting to about JD 3.24 billion compared to about JD 3.15 billion at the end of 2015 with an increase of about JD 90 million in a confirmation of the bank’s interest in the development of its investments and financings and distribute them geographically for different sectors including individuals, corporates or SMEs and diversify their investments within a clear and specific policy to achieve good results which reflect on the investments. Shihadeh indicated that the bank’s excellence in providing developed banking services in compliance with the provisions and principles of Islamic Sharia reinforced the clients’ trust of the bank. The growth inclients' deposits and accounts ( including restricted investment accounts, Muqarada bonds and investment by proxy accounts) reachedaround 8% amounting to about JD 4.04 billion compared to JD 3.75 billion at the end of 2015 with an increase of about JD 292 million. The growth achieved in the volume of balance sheet is a reflection on the growth of  the revenues which reached 10.8%, amounting to about JD 221.9 million compared to about JD 200.3 million at the end of 2015 with an increase of about JD 21.6 million.  Growth in joint investment profits before distribution reached about 11.6% at the end of 2016 amounting to  JD 201 million compared to JD 180 million at the end of 2015 with an increase  of around JD 21 million. Shihadeh added that the Shareholders’ equity grew by 10.1% amounting to about JD 343 million compared to about JD 311 million at end of 2015 .The Return on Average Equity (ROAE) after tax reached about 16.52%. Capital Adequacy Ratio (CAR) reached about 22.02 % at end of 2016,Return on Assets Average (ROAA) reached 1.37 % ,the efficiency ratio reached 37.93%, the Non- Performing Finance(NPF) reached 3.70% and their coverage ratio 121.6%. Shihadeh asserted on the continuation to lead the same approach to keep JIB’s distinguished position in Islamic banking business, the supporter for national economy, through the geographic expansion by opening more branches and offices which reached (97) at the end of 2016 and hiring qualified employees reaching 2236 by the end of 2016, in addition to the continuation to assume its social responsibilities towards the individuals of the local community by providing donations , aids and contribution to achieve sustainable development, support SMEs which benefit community and reduce poverty and unemployment. Furthermore, The Board of Directors has decided in its meeting convened on  8/2/2017 to recommend to the Ordinary General Assembly that will hold its meeting on 26/4/2017 to distribute cash dividends to shareholders for the year 2015 at 15% of the nominal value of shares, increase the bank’s capital from JD150 million /share to JD180 million / share and distribute bonus shares at 20% from the bank’s capital  that covered from the retained earnings after obtaining the prerequisite approvals .” Noting that these results are preliminary and subject to the approval of the Central Bank of Jordan.”