JD (34.4) million / Net Profits before tax
JD (1.59) billion / Total Assets
JD (1.36) billion / Total Deposits
JD (1.93) billion / Total of Balance Sheet and Managed Accounts
JD (922.5) million / Total Financing and Investment
JD (133.5) million / Shareholders' Equities
The General Assembly held its ordinary session on Wednesday 30/04/2008, chaired by H.E. Mr. Adnan Ahmad Yousif, Chairman of the Board. The companies' controller announced that quorum was (80.65%) of the shareholders. After minutes of the last ordinary meeting and the report of Sharia' Supervisory Board, the Bank's external auditors, as well as the Board's report on the Bank's operations for the financial year ended 31/12/2007 and the Bank's future plan; the Assembly approved the financial statements for 2007 and agreed to distribute 12% as cash dividends on the shareholders. The General Assembly assigned Dr. Abdul Sattar Abu Ghoddeh, Abdel Aziz Al-Khayat, and Dr. Ibrahim Zaid Al-Kilani as the members of Sharia' Board as well as Ibrahim Al-Abbassi & partners and Ernst & Young as external auditors. The Board members have been acquitted for the previous financial year, maintaining Mr. Haidar Murad, Global Investment House Company, and Mr. Ayman Abdel Karim Hatahet as board members.
The General Assembly held its extraordinary meeting in which it approved to raise the Bank's capital by JD sixteen million and two hundred thousand/share as 25% share free and to amend the fifth article of the Bank's Articles of Association so that the Bank's capital become JD (81.25) million instead of JD (65) million, to cover the increase by JD (15) million of the issuance premium and JD (1.25) million of the retained earnings.
The figures of the Balance Sheet as of 31/12/2007 showed its continuous and significant growth in all of its financial indexes. In 2007, the Bank has achieved an increase in the profits reaching before tax to about JD (34.4) million against about JD (23.4) million in 2006 with a growth of about (47%). The net profits after tax reached about JD (22.99) million with a growth of (48.6%) for 2006. The profits of the joint investment before distributing reached about (10.8%). At the beginning of 2008, the Bank has totally applied the accrual basis on all Murabaha transactions granted by the Bank, within its commitment to transform to the accrual basis in recording Murabaha profits from the joint investment JD funds.
At the end of 2007, the total assets amounted to JD (1.59) billion compared to JD (1.46) billion at the end of 2006 with a growth of (9.2%). The return on assets ratio before tax reached (2.15%) against (1.6%) at the end of 2006, while the return on assets after tax reached (1.44%). These ratios resulted from the increase in financing and investment that witnessed a growth in the amount of about JD (164.5) million with a growth of (21.7%). The total financing and investment amounted to JD (922.5) million compared to JD (757.9) million at the end of 2006, which reflects the growth of the Bank's activities in the various investments including real estates, investment portfolios, joint investment, Musharaka Financing and other financial papers that are complied with Islamic Sharia'.
The growth in deposits reached about JD (96.8) million with a ratio of (7.6%). The total balance of deposits reached JD (1.36) billion against JD (1.27) billion at the end of 2006. The deposits of investment portfolios/Muqarada Bonds amounted to JD (218.5) million at the end of 2007 compared to JD (166.7) million in the previous year increased by about JD (51.8) million with a growth of (31.1%). The specified/restricted investment deposits reached JD (101.2) million compared to JD (87.2) million at the end of 2006 with an increase of about JD (14) million with a growth of (16%).
The Bank has continued serving its clients in the investment by agency account whose balance as of 31/12/2007 reached about JD (9.5) million.
The Bank's total balance including restricted/specified investment accounts, investment portfolios, and investment by proxy amounted to about JD (1.93) billion compared to JD (1.73) billion at the end of 2006 with a growth of (11.6%), which represents the clients' trust in the Bank's various activities.
During a press declaration, Mr. Adnan Ahmad Yousif, Chairman of the Board, indicated that the realized results enhance the position of our Bank through promoting the Islamic values, enhancing the clients' trust and contentment and its conforming to every new technology in the banking industry. Accomplishing these results refers to the favor of Allah, then the constant support from the believers of the Bank's methodology, as well as the special and continuous efforts by the Bank's executive management and staff.
He also assured on the Bank's interest to present its services very easily to the different residential and economical groups. In 2007, two new branches have been opened in Thunayia/Al-Karak and Khreibt Essouq/Amman to be 56 branches and 9 banking offices.
With regard to the Bank's social role, he highlighted the Bank's contribution to create career opportunities through its programs and investments focusing on the program of financing craftsmen by which the number of the finalized projects as the end of 2007 reached (71) projects. The total financing presented to these projects reached JD (1.6) million. In addition, the Bank offers donations, Mutual Insurance Fund and Al-Qard Al-Hassan. The total number of citizens benefited from the free-interest loans “Al-Qard Al-Hassan” reached about (19112), with a total amount of about JD (8.7) million compared to JD (8.1) million from which (15506) citizens in 2006.
As for the Mutual Insurance Fund which was established in 1994, (114) cases have been compensated in 2007, whereas the compensations paid by the Fund reached about JD (385) thousand and the Fund's balance at the end of the year reached about JD (17.86) million. The Fund's participants reached about (81371) and the total balance of their debtness reached about JD (240) million.
It has been mentioned in the Board's Report that by the end of 2007, the current number of beneficiaries from the Bank's financing that cover people needs including houses, grounds, building materials, transport means, construction vehicles, and furniture reached (72,892), while the financing balance reached about JD (441.8) million.
The Bank has also continued to invest in the capitals of national companies whose main activities comply with the rules of Islamic Sharia' and which produce goods and services of public interest for the national community and economy. The number of companies that the Bank invested in their capitals (39) companies whereas the investment reached about JD (46.7) million.
On another hand, Mr. Musa Shihadeh, Vice Chairman & General Manager, has said that the Bank maintained its market share in Jordan banking market. The balance showed that the total balance of savings accounts from the total clients' deposits in the performing banks in Jordan reached about (10.6%), while the total balance of financing and investment of the direct insurance facilities for the performing banks in Jordan reached (10.6%), and the total Bank's assets to the total assets of the banks in Jordan reached (7.2%).
At the end of 2007, the shareholders equities have increased by the amount of JD (18.2) million to reach JD (133.5) million compared to JD (115.3) million in 2006 with a growth of (15.8%), after raising the Bank's capital to be JD (65) million during the first quarter of 2007 in order to enhance the capital base.
The earning per share after tax for 2007 reached about (35.4%) against (27.9%) for 2006 with a growth of (26.9%), whereas the return on equities after tax reached (18.48%).
The capital adequacy ratio reached (15.7%), which exceeds the specific limit according to the regulations of the Central Bank which is (12%), while the ratio reached (27.8%) in accordance with the regulations of the Accounting and Auditing Organization for Islamic Financial Institutions.
Mr. Shihadeh added that the Bank has achieved during 2007 more development activities such as the expansion in presenting the SMS service to include informing the client of any transactions made on the account.
The Bank has Installed and operated new seven ATMs to be (64) ATMs which are all linked with the clients accounts, the National Network (JONET), through which are linked with the International Visa Network outside Jordan, in addition to moving from Money Gram to Western Union system. The Controlling system of the Bank's branches and ATMs has been completed by using video cameras and applying the Electronic Clearing System instead of the Machine System. He added that the Bank is preparing to install the new banking system to adhere to the developments in the Bank's operations to be more consistent with the technological developments. The Bank has also Applied the (VBV) Service that enables the golden or silver card holder to shop through the internet by using a password created from the Bank's website.
With respect to the Bank's plan for 2008, Shihadeh said that the Bank will totally start applying to record Murabaha profits on the accrual basis as well as presenting various banking services and improving them. Also, the Bank will expand the issuance of Muqarada Bonds, promoting clients to deal with, and expanding in the financing of Lease ending-in-ownership and craftsmen and small industries to help them find new career opportunities. The Bank's network plan includes opening two branches in Khalda/Amman and Al-Shoonah Al-Shamaliya/Irbid, in addition to opening three cash offices in Al-Muqabalein/Amman, Dhahyet Al-Yassmeen/Amman, and the Bank has already opened Al-Istiklal Mall office the in middle of April.
New ATMs have been installed and operated consistent with updating and developing the communication systems and networks to convoy to the new technologies and development in the Bank's operations by completing the remaining steps to replace the current banking system with a new one to be more able to meet the Bank's accelerating operations and to conform with banking technological developments, adopting new banking technologies and deepening and developing the Corporate Governance Principles in the Bank, as well as applying Basel II requirements.
