Bank of Jordan’s financial results for 2017, approved by the Central Bank of Jordan, reveal that net profit attributable to shareholders rose by 13% to JD46.8 million from a year earlier.
Board Chairman Shaker Fakhouri said the strong financial results demonstrate that the Bank’s sound credit and investment policy is delivering high value and high return for investors, customers, and the society. BoJ financial statements show that net interest and commission income stood at JD127.2 million, up 9.4% when compared to 2016. Return on average assets and shareholder equity remained high at 1.86% and 11.15% respectively. Capital adequacy, in the meantime, stood at 19.08% and the ratio of non-performing loans to total credit dropped from 4.59% at the end of 2016 to 4.50% at the end of 2017. The coverage ratio of provisions for non-performing loans came in at 125.36% against 112.21% in 2016.
He added that Bank of Jordan Group remained vigilant and alert to economic developments in the various markets where it operates, but continued to lend to targeted economic sectors and activities.
The 2017 figures unveil that direct credit facilities surged by 18% year-on-year, resting at JD1,447.2 million by the end of 2017. Customer deposits, meanwhile, grew by 15% to JD1,845.8 million. Assets clocked in at JD2,565.1 million and shareholder equity stood at JD433.7 million.
In light of these results, the Board recommended to the General Assembly the distribution of 18% of capital in cash dividends.
“We realize the scale of market challenges brought about by protracted conflicts in the region. We will press ahead with our march towards excellence taking into account these persistent conditions, said Fakhouri, pledging that “the Bank will continue to improve the level of services delivered through conventional and e-distribution channels, and to undertake its role as a leading financer of businesses”. This, he explained will be fulfilled through meeting evolving market and client needs while ensuring highest returns.
Mr. Fakhouri thanked the board, management, and competent staff which have largely contributed to achieving these outstanding results. He also thanked shareholders and customers for their trust and unwavering commitment. The chairman also thanked national institutions, chiefly the Central Bank of Jordan, for supporting the banking sector and the economy at large under the guidance of His Majesty King Abdullah II.