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Date : Apr 30, 2024
The General Assembly of Jordan Islamic Bank approved the recommendation of the bank’s Board of Directors to distribute cash dividends to shareholders at a rate of (22%) from the paid-up capital for the year 2023, with a total amount of JD 44 million. This came during its regular meeting, which was held via visual and electronic communication, headed by Mr. Abdullah Al-Howaish, Chairman of the Board of Directors, in the presence of members of the Board of Directors, and CEO Dr. Hussein Said, and shareholders holding shares (on behalf, by proxy and agency) at a rate of about (74.32%), and in the presence of a the Companies Controller, Dr. Wael Al-Armouti, and the representative of the Central Bank, Mrs. Heba Allah Amer and Mrs. Sawsan Al-Nasser, on Monday 29/4/ 2024. The Authority also approved the Board of Directors’ report, the bank’s work, the future plan, and the items listed on the meeting’s agenda. Messrs. PricewaterhouseCoopers/Jordan were elected as auditors of the bank.
Then the General Assembly held its extraordinary meeting immediately after the regular General Assembly meeting and agreed to amend some items of the bank’s articles of Memorandum and articles of Association with the aim of harmonizing them with the legislation in force in particular, which was sent in an invitation to the bank’s shareholders to attend the meeting in advance and published on the bank’s website.
Mr. Abdullah Al-Howaish expressed his pride in the good results the bank has achieved while maintaining the bank’s prominent position on the Jordanian banking scene in support of the national economy and the local community despite difficulties and challenges faced by all individuals, institutions and the local economy as a result of the rapid changes and recent events during the year 2023. And its negative effects on the economies of countries around the world, including Jordan, stressing his confidence in the bank’s ability, with its flexible business models and advanced capabilities and expertise in the field of innovation, to benefit from the strong positive macroeconomic indicators and invest them for the benefit of the bank and its clients, and to keep pace with everything new in the field of the digital banking industry, its technologies and its developments, stressing the move towards developing and developing the bank’s business, providing the best to its customers and keeping pace with their aspirations.
He pointed out that the bank achieved good growth in its financial performance and maintained its share of the Jordanian banking market for the year 2023. The total balances of financing and investment of the bank from direct credit facilities to banks operating in Jordan amounted to about 15.5%, the total balances of the bank's savings schemes out of the total customer deposits with banks operating in Jordan amounted to about 12.7%, and the total assets of the bank to the total assets of banks operating inside Jordan amounted to 9.5%.
Al-Huwaish thanked and appreciated the Central Bank of Jordan and the official and supervisory bodies for their role in enhancing monetary stability and providing the appropriate environment for the banking sector to keep pace with the best international standards. He also praised the distinguished efforts of the Board of Directors, the executive management, the employees, and the Sharia Supervisory Board at the bank, who contributed to the bank’s leadership and its continued successes.
For his part, Dr. Hussein Said, CEO of Jordan Islamic Bank, said, “Despite the continuation of many different geopolitical and economic events and challenges and the obstacles and uncertainty surrounding our region. However, thanks to God, our bank was able to maintain its leadership in banking and keep pace with various developments in various fields, especially in the banking work environment, and by continuously monitoring the most important developments and best practices to enhance institutional governance and be compatible with its strategic objectives of improving profitability, reducing costs, promoting digital banking, digital transformation, and innovating and developing products. New banking services, improving services provided to customers, job satisfaction, regulatory environment, asset quality, and increasing market share.
Dr. Hussein Said stated that the bank was able to achieve profits in 2023 before tax of about JD 94.6 million and after tax of about JD 62.3 million. The bank’s revenues also amounted to about JD 292 million, compared to about JD 267 million at the end of the year 2022, with a growth rate of 9.4%. Assets, including (restricted investment accounts and wakala investment accounts (investment portfolios)) amounted to about JD 6.423 billion, compared to about JD 6.191 billion at the end of 2022, an increase of about JD 232 million, with a growth rate of about 3.7%.
Dr. Hussein pointed out that in confirmation of the bank’s great confidence from its customers, the balances of savings schemes, including (restricted investment accounts and wakala investment accounts (investment portfolios)) reached about JD 5.760 billion, compared to about JD 5.533 billion, with a growth rate of about 4.1% distributed among 1,187 thousand active accounts, compared to about 1,152 thousand active accounts at the end of 2022.
The bank also sought to take into account the diversification and distribution of investments and financing provided to various sectors, including individuals and small and medium enterprises, and included various economic, health, educational and industrial activities and facilities, as the total financing and investment balances, including (restricted investment accounts and wakala investment accounts (investment portfolios))amounted to approximately JD 5.336 billion, compared to about JD 5.198 billion at the end of 2022, with a growth rate of about 2.7%.
The bank also maintained the strength of its capital base, as shareholders’ equity amounted to about JD 534 million, compared to about JD 521 million at the end of 2022, with a growth rate of about 2.5%, and the capital adequacy ratio (CAR) at the end of 2023 reached about 20.51% according to capital adequacy instructions for Islamic banks issued by the Central Bank of Jordan, it exceeds the prescribed percentage, confirming the strength of the bank’s capital base. The bank also maintained the integrity of its credit portfolio and the quality of its assets, as the percentage of Non- Performing Finance (NPF) reached about 2.81% .
Based on the great importance that the bank attaches to employing innovative technology in the services it provides to its customers, Dr. Hussein Said indicated that during the year 2023, many development and modernization operations were completed in the field of banking technologies. A third corner for digital self-services “Islami Digital” was opened, A group of new services were launched through Islami Mobile or Islami Internet banking applications, and the bank’s pages on the platforms Facebook, YouTube, Instagram, and LinkedIn were constantly updated, and new ATMs were updated, installed, and operated, and adding some services to it. While continuing to invest in developing operations and improving systems by enhancing cyber security, in addition to the bank’s continuous endeavor to improve the quality of business, products and services, and interest in green financing through many initiatives and sponsorships, providing financing offers to expatriates, and providing banking solutions to comrades in arms, stressing the bank’s continued efforts to enhance its basic goals of contributing to comprehensive societal development through social responsibility and sustainability programs that contributes to the advancement and development of society while continuing to issue the sustainability report. According to the new standards of the Global Reporting Initiative (GRI).