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PRESS RELEASE
Jordan Islamic Bank Posts US$ 39.49 Million Profits in
2009 and Declares Cash Dividend of 12%
Manama, 13 March 2010: Jordan Islamic Bank, a subsidiary banking unit of the
Bahrain-based Al Baraka Banking Group B.S.C. (ABG), achieved a net profit
before tax of US$ 55.01 million on its operations in financial year 2009. After
accounting for tax, net profit amounted to US$ 39.49 million in 2009.
The Board of Directors of Jordan Islamic Bank headed by Mr. Adnan Ahmed
Yousif, President & Chief Executive of Al Baraka Banking Group approved the
financial statements and recommended referring them to the Ordinary General
Meeting planned to be held on 27 April 2010, together with the
recommendation to pay cash dividends to shareholders of 12% of the bank's
capital. The Central Bank of Jordan had already approved the financial
statements of the Bank and the recommendation of the Board of Directors.
The Bank's financial statements of 2009 showed that joint investment profits
before distribution amounted to about US$ 140.76 million. The general rate of
profit on Jordanian Dinar accounts amounted to 5.69% and 1.25% on foreign
currencies, which is one of the highest rates of return paid to depositors.
Total assets at the end of 2009 amounted to about US$ 3.079 billion, compared
to US$ 2.606 billion at the end of 2008, an increase of about US$ 472.5 million
or 18.1%.
The overall footing of the bank's balance sheet including managed accounts
(investment accounts, Muqarada bonds and Wakala investment accounts) at the
end of 2009 amounted to about US$ 3.484 billion, compared to US$ 3.061
billion, a growth of 13.9% compared to the year end of 2008.
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Finance and investments at the end of 2009 increased by US$ 214.53 million to
reach about US$ 1.846 billion, compared to US$ 1.632 billion at the end of
2008, a growth of 13.1%, which confirms that the bank's financing and
investment activities were growing.
The bank was also able to strengthen its position in the bank deposits market.
Customer deposits together with managed accounts (investment accounts,
Muqarada bonds and Wakala investment accounts) at the end of 2009 amounted
to about US$ 3.1 billion in as many as 736.3 thousand active accounts,
compared to about US$ 2.68 billion in 702.3 thousand active accounts as at the
end year 2008, reflecting a growth of 16.2%.
Total customer deposits at the end of 2009 amounted to about US$ 2.72 billion,
compared to US$ 2.24 billion for the same period of 2008, an increase of US$
478.14 million or 21.3%. This reflects the confidence of customers in the bank's
Islamic dealings which it undertakes strictly in accordance with the provisions
and principles of Islamic Shari’a. The bank also manages restricted investment
accounts, investment portfolios and Wakala investments in an amount of about
US$ 406.21 million.
Jordan Islamic Bank has also strengthened its capital base by increasing the
bank's capital in 2009 to US$ 141.04 million, following which shareholders
equity stood at about US$ 249.37 million, compared to about US$ 227.08
million at the end of 2008, an increase of 10%.
The rate of return on average equity before tax amounted to about 23.04% and
about 16.51% after tax, while return on paid-up capital (Earning Per Share)
amounted to US$ 0.4. On the other hand, the capital adequacy ratio at the end
of 2009 stood at about 14.47%, calculated in accordance with the measurement
criteria of the Central Bank of Jordan, and about 33% according to the
standards of Islamic Financial Services Board (IFSB).
On this occasion, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors
of Jordan Islamic Bank praised the results of the bank, as it continued its
outstanding achievements despite the global financial crisis and its negative
impact on the national economy and the economies of the region as a whole.
He stressed that this was a clear indication of the success of Islamic banking
despite the challenges facing the world in the aftermath of the global
economic crisis. He went on to praise the performance and support of all
concerned government agencies and regulatory bodies, especially the Central
Bank of Jordan.
As for the future, Mr. Adnan Yousif said that Jordan Islamic Bank would
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continue to maintain its rate of growth and seek to deliver balanced returns for
its shareholders, depositors and employees and that it would work towards
increasing its market share through offering a full range of competitive
products and expanding its branch network.
On his part, Vice Chairman of the Board of Directors and General Manager of
Jordan Islamic Bank Mr. Musa Abdul Aziz Shihadeh said that the results
achieved by Jordan Islamic Bank were a clear indication of the success of
Islamic banking and its ability to withstand all challenges and difficulties.
Mr. Shehadeh also expressed pride in the results, which he said confirmed the
soundness of the bank's approach in implementing Islamic banking policies and
solutions in keeping pace with the rapid developments taking place in the
Islamic banking industry during the last thirty years. The many banking awards
won by the bank and good credit ratings received from an international rating
agency during 2009 were a proof of the success of this approach, stressing that
the bank would continue to exert more efforts to strengthen the confidence of
our customers and shareholders in the bank and achieve the best results in line
with the bank's strategy and mission which conform to the principles of Sharia.
Jordan Islamic Bank is one the subsidiary banking units of Al Baraka Banking
Group. Al Baraka Banking Group is a Bahrain Joint Stock Company listed on
Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic
bank with Standard & Poor’s long and short-term credit ratings of BBB- and A-3
respectively. Al Baraka Banking Group offers retail, corporate and investment
banking and treasury services strictly in accordance with the principles of the
Islamic Shari'a. The authorised capital of Al Baraka Banking Group is US$1.5
billion, while total equity amounts to about US$ 1.7 billion. The Group has a
wide geographical presence in the form of subsidiary banking Units and
representative offices in twelve countries, which in turn provide their services
through more than 300 branches. These banking Units are Jordan Islamic Bank,
Jordan; Al Baraka Islamic Bank, Bahrain; Al Baraka Islamic Bank, Pakistan;
Banque Al Baraka D'Algerie, Algeria; Al Baraka Bank Sudan, Sudan; Al Baraka
Bank Limited, South Africa; Al Baraka Bank Lebanon, Lebanon; Al Baraka Bank
Tunisia, Tunisia; Al Baraka Bank Egypt, Egypt; Al Baraka Turk Participation
Bank, Turkey; AlBaraka Bank Syria, Syria and a representative office in
Indonesia.
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For further information, please contact:
Corporate Communications Department
Al Baraka Banking Group B.S.C
Tel: +973-17-541122 – Ext: 227
Fax: +973-17-536533
Website: www.albaraka.com
Email: info@albaraka.com
maljowesir@albaraka.com
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