Total income of the Bank increased by 7% to reach JD348.8 million in 2018
Net profit amounted to JD95 million and liquidity ratio reached 124%
Amman, 11 February, 2019
The Housing Bank for Trade and Finance, the most widespread bank in the kingdom, reported an increase in total income by 7% to reach JD348.8 million for the year 2018, compared to JD326 million reported in 2017.
The Bank Pretax Profits for the year 2018 amounted to JD132 million, compared to JD180 million for the previous year. Meanwhile, Net profit (after tax) amounted to JD95 million compared to JD125 million in 2017. This decline is attributable to the implementation of the International Financial Reporting Standard 9 (IFRS9), in which provisions amounting to JD63 million were booked, which will strengthen the Bank's financial position and reinforce its creditworthiness.
The Bank persisted over the year on realizing good growth rates in various financial indicators. Where net interest income and commission income increased by 5.2% to reach JD306.9 million, compared to JD291.7 million in 2017. Furthermore, total direct credit facilities grew by 3.5% to reach JD4.6 billion in 2018.
Commenting on these results, Mr.Abdel Elah Al-Khatib, chairman of the board of directors, said that the Bank continued to perform good results despite the challenging economic distress, explaining that these results are a testament of the Bank's well balanced performance and its ability to sustain solid financial position, with a total equity of the Bank amounting to JD1.1 billion as at end of 2018.
Al-Khatib further explained that the Board of Directors, in its meeting held on 24/1/2019, has discussed and approved the Bank's financial results for the year 2018, and recommended to the General Assembly, a cash dividend of 15% of the share nominal value.
Al-Khatib also stated that the Bank is committed to its continuous positive contribution to the national economy and focus on achieving better financial results in the upcoming years, as well as fulfilling its shareholders' and clients' vision through enlarging its operating profits. He also expressed his confidence in the Bank's ability to develop and improve performance quality which will support the Bank's position in both local and regional banking industry.
Mr Ammar Al-Safadi, Chief Executive Officer, stated that the results achieved in 2018 reflect the strength of the Bank's financial position and the Bank's solid capital base, with a capital adequacy ratio of 16.2% and liquidity ratio of 124%, both are well above the minimum requirements of the Central Bank of Jordan and the Basel Committee.
It is noteworthy to mention that the Bank has been awarded five different awards during 2018 from regional and international institutions, in recognition of the quality of the Bank's products and distinguished banking services offered in the Jordanian Banking Sector.
"These results are preliminary, pending the approval of the Central Bank of Jordan".