Distribution of Profits by 35%
JOD 162.1 Million Pre-Tax Profits in 2014
During 2014, the Housing Bank achieved "pre-tax profits" of JOD 162.1 million, the highest since establishment, compared with JOD 150.1 million last year. "Post-tax" net profits amounted to JOD 123.9 million, compared with JOD 106.9 million achieved in last year with an increase of 16%.
Commenting on these results, Michel Marto, Chairman of the Board of Directors explained the Bank's financial position and capital base strength. The Bank achieved numerous achievements in items of the balance sheet. Total assets amounted to JOD 7.6 billion, with an increase of 5%, and customer deposit balances amounted to JOD 5.5 billion, with an increase of 7%. Moreover, the net balance of credit facilities portfolio amounted to JOD 2.7 billion, with an increase of 2%, and equity rights amounted to JOD 1038 million.
These results were positively reflected on the key financial solvency of the Bank, where the adequacy capital ratio was 18.2%, which is higher than the rate required by the Central Bank of Jordan and Basel Committee. Liquidity ratio was 170%, which is also higher than the required rate, return on assets ratio was 1.7%, and return on equity was 11.8%. These indicators confirm the Bank's solvency and financial position strength.
In respect of the external branch and subordinate banks activity of the Bank, the external branches of the Bank in Bahrain and Palestine have achieved good results. Results of the subordinate banks in Algeria and Britain had also achieved good levels of profits and other different activities. "The International Bank for Trade and Finance/ Syria" kept consistency and balance in sources and uses of funds, as the financial position of this bank remained fit and it is keeping proper solvency and liquidity ratio.
In respect of internal expansion in Jordan, five new branches were opened; thus operating branches in Jordan reached 124 branches, supported by (208) ATMs in providing a range of banking services to customers. With this situation, the Bank remains the leader of the banking sector in Jordan through the number of branches and number of ATMs. It is worth noted in this respect that the Housing Bank has local and international branch network of 175 branches, in addition to representation offices in Iraq, UAE and Libya.
On this occasion, Marto emphasized that these positive results were as a result of the prudent and balanced policies adopted by the Bank, advanced level in service provision to customers of the Bank "quantitatively and qualitatively", and the outstanding efforts of the employees of the bank at all levels, which led to expansion in business size under a prudent risk management policy.
Based on these good results, the board of directors in its meeting held on 29/1/2015 recommended to the shareholders general meeting to be held on 26/3/2015 to distribute profits on shareholders for 2014 at 35% of the nominal value of the share.
Finally, Marto praised the Bank and its confidence in the ability to continue to improve performance, strengthen solvency, and improve quality of credit and investment portfolios. He took the opportunity to express special thanks to the Bank's clients for their confidence that the Bank is always seeking to strengthen through providing more services promoted to level of their ambition, to the board of directors for continuing efforts in the support of the Bank. He also thanked and praised all employees "senior management and staff" who show loyalty, high efficiency and distinguished efforts in client service.
"Noting that these results, financial indicators and the recommended distribution of profits rate are preliminary and subject to the approval by the Central Bank".