Net Profits, Before Tax                                                                           JD 23.4 million .

Total Assets                                                                                           JD 1.5 billion .

Total Deposits                                                                                        JD 1.24 billion .

Grand Total of the Bank’s Balance Sheet                                              JD 1.73 billion .

Total Financing and Investment                                                             JD  757.4 million .

Shareholders’ Equity                                                                              JD 115.3 million .

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The General Assembly held its ordinary session on 29/4/2006 under the chairmanship of Mr. Mahmoud Hassoubah, Chairman of the Board. The meeting commenced after the Companies’ Controller announced that quorum was attained as (78%) of the shareholders were either present or represented. After hearing the minutes of the last ordinary meeting and the reports of Sharia Supervisory Committee and the Bank’s external auditors as well as the Board’s Report on the Bank’s activity for the financial year ended 31/12/2006; the Assembly approved the statements of 2006.

 

After that, the assembly held its extraordinary meeting in which it approved to amend paragraph (1) of article (11) of the Bank’s Articles of Association to amend the number of the Board's members to be (9) instead of (7).

The Bank's figures show an increase of its profits that reached JD (23.4) million compared to JD (19.6) million in 2005 recording an increase of JD (3.7) million (a growth of 19%). The profits after tax and fees reached JD (15.5) million (a growth of 18.2%).  The profits on the Joint investment Accounts by (14.6%) along with the Bank’s commitment to the transformation plan to the accrual basis in recognizing the JD profits to achieve a complete transformation by the year 2008.

The figures of the balance sheet of the Bank as of 31/12/2006 came as follows:

• The Bank’s Assets amounted to JD (1.5) billion compared to JD (1.3) billion at the end of 2005 (a growth of 9%).

• Return on assets ratio before tax reached (1.7%) compared to (1.5%) for the previous year.

• Return on Assets after Tax  reached (1.1%). Such growth is ascribed to the increase in the financing and investment by about JD (116.4) million (a growth of 18.2%).

• The Bank's Investment and Financing activities reached about JD (757.9) million compared to JD (641.5).

• The percentage of the non-performing financing declined by 2.75% compared to 3.59% for the previous year indicating a growth of the Bank’s activities in terms of real-estates, investment portfolios, joint investment, financing through Musharaka and Sharia compliant financial securities.

• The total balance of deposits including the current accounts increased by JD (81) million (a growth of 7.01%) where the deposits total amounted to JD (1.24) billion compared to JD (1.16) billion in 2005.

• The investment portfolios deposits amounted to JD (166.7) million compared to JD (159.1) million at the end of 2005 (a growth of 4.8%).

• Restricted Investment Accounts (specified Investment) amounted to JD (87.3) million compared JD (66.9) million as of the previous year (a growth of 30.5%).

• The Bank launched a new account “Investment by Proxy ”. The balance of this account reached JD (9.5) million as of the end of 2006.

• And by adding the balance of the restricted investment, Investment by Proxy and Muqarada Bonds (Investment Portfolios), the grand total of the deposits amounted to JD (1.73) billion compared to JD (1.6) billion in 2005 recording a growth of (10%).

• Shareholders’ equities stood at JD (115.3) million compared to JD (69.4) million for the year 2005 increasing by JD 45.9 million (a growth of 66.2%).
• Te Bank’s capital adequacy ratio at the end of 2006 was (16.2%) which exceeds the (12%) ratio required by the Central Bank, whereas according to the accounting standards set by the Accounting and Auditing Organization for Islamic Financial Institutions; the Bank’s capital adequacy ratio was (27.7%)

 

In a press statement, the Chairman Mr. Mahmoud Hassoubah praised Allah the Almighty for what the Bank has achieved the continued efforts that are obviously reflected by the aforesaid results and figures which couldn’t be achieved without the shareholders' loyalty and the support and trust of the valued customers in addition to the hard work done by the Bank's management and staff. He pointed out that the Bank's network serves most of the country. The network, after upgrading the offices of Abu Nuseir and Sweifieh to branches , consists of (54) branches and (9) offices.

Highlighted the Bank's role in supporting the social activities through donations, the Mutual Insurance Fund and Al-Qardh Al-Hassan (Free Profit Loans) which the total amounted during the year 2006 reached about JD (7.3) million from which (15506) citizens benefited. The Bank contributes in creating career opportunities through its programs and investments especially the Craftsmen Financing Program run by the Bank, he added.

The Mutual Insurance Fund

The Bank invests part of its financial resources in the capitals of national companies, whose activities do not include any violation of the rules and principles of Islamic Sharia and which produce goods or provide services that benefit the society and enhance the development of the national economy. The total sum of the Bank’s participations in the capitals of such companies, the number of which reached (40), stood at about JD (42.5) million at the end of 2006.

Sanabel Al-Khair for Financial Investments, established as a limited liability company from the Bank’s special funds with a capital of JD (2.5) million, started its business at the beginning of 2006 to supplant the Bank’s Brokerage Office, which was closed at the beginning of 2006 when the company started its business.

In line with Bank's policy of upgrading the academic qualifications of its employees, the Bank granted scholarships to its employees to pursue their higher studies in addition to the Islamic Banking Studies Diploma .

In the meantime Mr. Musa Shihadeh, Vice Chairman and General Manager of the Bank, said that the Bank was able to increase its share within the local banks in Jordan in terms of the volume of deposits and financial employments as the Bank’s share in the total of deposits placed with Banks amounted to (10.3%) of these deposits and its share in direct credit lines amounted to (10.1%) while its share in the total of assets was (7.1%).

Our commitment to the Islamic principles that drives us to improve our services and develop our systems to catch up with the latest applications in the banking industry, enabled  us to obtain ISO9001:2000 in 2006 in addition to raising the Bank’s rating from (BB+ Stable) to (BBB- Stable) according to Capital Intelligence, H.E. Mr. Shihadeh Added. In this context, it is worth mentioning that Jordan Islamic Bank is the first bank on the national level that launches the "Smart Card" and "CHIP & PIN" that are Issued in-House . In addition, the Bank has launched the SMS service through mobile phones. The Bank is preparing to bring the Electronic Clearing System into effect as a part of its continued endeavors to comply with the new banking technologies. Furthermore, the Bank has operated new three ATM’s and installed monitoring cameras to control the branches and the ATM’s.

At the end of the meeting, the Assembly elected a new Board for the coming four years as follows:

1. Al-Baraka Banking Group represented by:
   • H.E. Mr. Adnan Ahmad Yousif.
   • H.E. Mr. Othman Ahmad Sulieman.
   • H.E. Mr. Abdellateef A. Al-Rajihi.
   • H.E. Mr. Hamad A.oqap.
2. H.E. Mr. Musa A. Shihadeh.
3. H.E. Prof. Kamel Isma’el Al-Shareef.
4. H.E. Eng. Ra’ef Yousef Najem.
5. H.E. Mr. Kamal Sami Asfour.
6. H.E. Mr. Salem Mohammad Masa’deh.

The Board of Directors concluded the meeting with electing Al-Baraka Banking Group as the Chairman represented by Mr. Adnan Yousif and appointing Mr. Musa A. Shihadeh as the Vice-Chairman & General Manager.