The Board also advised the Extraordinary General Assembly to increase the Bank's capital from JD 65 to 81.25 million/share by distributing 25% of a share for free, after modifying the articles of incorporation and the articles of association, as well as obtaining the needed regulatory approvals. He also added that Central Bank of Jordan agreed on the Board's recommendations.
H.E added that the great success that the Bank achieved during the last year reflects the success of the management by implementing a set of banking policies & Islamic solutions complying with the developments of Islamic banking industry and presenting packages of services and banking products. He emphasized on the Bank's strategy that relies on a set of firm principles such as maintaining the Bank's financial position and raising its share market in accordance with the rules of Sharia'.
Mr. Musa Shihadeh, Vice Chairman & General Manager, said that JIB budget as of 31/12/2007 showed a clear growth in all the financial indexes in profits, assets, deposits, and investments, in order to enhance its position in the banking sector in Jordan. The total assets at the end of 2007 reached JD 1.59 billion, compared to JD 1.46 billion with a growth of 9.2%. The return on assets before tax reached 2.15% compared to 1.6% at the end of 2006, while reached after tax 1.44%. The earning per share after tax for the year 2007 reached about 35.4% compared to 27.9% for 2006 with a growth of 26.9%, whereas the return on properties after tax reached 18.48%.
These ratios resulted from the increase of finance & investment operations which reached about JD 164.5 million with a growth of 21.7%. The total finance & investment reached JD 922.5 million compared to JD 757.9 million at the end of 2006, that shows the growth in the Bank's operations in
different investments such as real-estates, investment portfolios, joint investment, Musharaka financing, and the financial papers that complies with Sharia' rules.
Mr. Shihadeh assured the Bank's commitment of its transforming plan to applying the accrual basis principle in realizing Murabaha profits in JD of the joint investment accounts. The Bank reached a complete application of the maturity principle for all Murabaha transactions that are granted by the Bank at the beginning of 2008. The growth in deposits reached about JD 121.4 million with a growth of 9.8%, whereas the total deposits reached JD 1.36 billion against JD 1.24% billion at the end of 2006.
The deposits of the investment portfolios/Muqarada Bonds increased by about JD 41.7 million to reach JD 184.9 million at the end of 2007 against JD 143.2 million in 2006 with a growth of 29.1% . The deposits of the specified investment increased to reach about JD 13.9 million with a growth of 16% and amounted to JD 101.2 million compared to JD 87.3 million at the end of the previous year. The Bank continued serving the clients of investment by proxy which its account reached JD 9.5 million as of 31/12/2007.
The Bank's total budget including restricted investment accounts, investment portfolios, investment by proxy amounted to JD 1.93 billion against JD 1.73 billion at the end of 2006 with a growth of 11.6%. This represents the clients' trust in our Bank in its various activities which enhance the Bank's position in Jordan market and maintain a developed position in the local market through hiking its financing activities to attract more clients in the financial and investment instruments according to the Islamic Sharia' rules.
He also said that the shareholders' equities as of 31/3/2007 increased by JD 18.2 million to reach JD 133.5 million against 115.3 JD million at the end of 2006 with a growth of 15.8%.
he capital adequacy ratio reached 15.69% which exceeds the decided ratio according to the Standards of Central Bank of Jordan that is 12%. This index amounted 27.83% in accordance with Islamic Banks (AAOIFI) Standards exceeding the set ratio that is 8%.
