(Amman, Jordan - March 2022): Bank of Jordan recently announced the results of its consolidated financial statements for 2021, revealing that it achieved a net profit attributable to its shareholders of 36 million Jordanian dinars, compared to 35.8 million Jordanian dinars for the year of 2020, equal to a growth rate of 0.6% after taxes and provisions.
According to the financial results, approved by the Central Bank of Jordan, Bank of Jordan recorded a 4.1% growth in shareholders’ equity, which amounted to 473.4 million Jordanian dinars, with a return on equity (ROE) of 7.8%. The capital adequacy ratio reached 19.2%, indicating the strength of the Bank's financial position and its capital base.
In light of this performance, the Bank of Jordan Board of Directors decided to recommend to the General Assembly the distribution of dividends to shareholders of 18% of the Bank's capital, worth a total of 36 million Jordanian dinars.
In 2021, the Bank maintained the quality of its assets, amounting to 2.7 billion dinars, with a return on assets (ROA) until the end of the year standing at 1.3%. Achieving a growth in its net operating income by 1.5 million dinars, through interest and commissions, to reach 129.2 million dinars, in addition to a growth in the net credit facilities portfolio (at amortized cost) by 19.4 million dinars or 1.3%, to reach 1.5 billion dinars. The Bank recorded a coverage ratio for non-performing loans of more than 100%, in return for maintaining the same level in customer deposits, which amounted to 1.9 billion dinars. In accordance with the Bank’s policy of maintaining provisions in anticipation of any challenges, it allocated additional expected credit losses amounting to 16.1 million dinars during the year 2021.
Bank of Jordan completed a number of strategic projects and initiatives throughout the year. It continued to excel at customer services, earning the continued trust of clients by exceeding their expectations and meeting the banking, investment and savings requirements of their various sectors through a range of products and services via different channels, including advanced digital solutions.
In addition to the impact of its banking services, the Bank aims to stimulate sustainable social development by continuing to enhance and deepen the impact of its corporate social responsibility strategy, through various projects, activities and initiatives implemented in cooperation with civil society organizations and public sector institutions.
Commenting on the financial results, the Chairman of the Board of Directors, Shaker Tawfiq Fakhoury, stated that Bank of Jordan was able to maintain good performance levels as a result of the Bank’s comprehensive strategic approach, despite the ongoing challenges which many of the world’s economies are still facing due to the pandemic.
The Bank strives for sustainable performance at all levels, keeping pace with business developments and safeguarding the robustness of its basic banking operations, its operational efficiency, the safety and quality of its credit and investment portfolios, as well as its prudent management of risks. The Bank maintains a pivotal role in promoting economic and social development everywhere it operates and is confident in its business prospects due to the persistent efforts of its team.
Mr. Fakhoury concluded by referring to the Bank’s aspirations which continue to build on its heritage. It will implement a business model and strategy which aims to grow and expand, by exploring new markets and developing its electronic and digital services. Today, Bank of Jordan has expanded its presence to cover Palestine, Syria, and Bahrain and is in the process of opening a branch in Iraq. In this context the Bank is currently studying opportunities for growth in the Arab region, in particular in the countries whose economies are witnessing rapid growth.