Adoption of the Final Financial Statements for 2014 and
Distribution of Dividends by 35%
Marto: Pretax Profits were JD 162 million in 2014 and performance indicators confirm the solvency of
The general assembly of the Housing Bank's shareholders approved in its ordinary meeting on 23/4/2015 on the report of the board of directors and adopted the financial statements for 2014 and the future plan for 2015. The general assembly approved the Board's recommendation to distribute dividends to shareholders by 35% of the share nominal value.
Michel Marto, the Bank's Chairman gave a speech to the shareholders at the meeting that the Bank Group achieved during 2014 profits exceeded those achieved during the last year despite the continued difficult challenges that accompanied political and economic conditions that took place in most of the countries in the region. Pretax profits were JD 162.1 million (highest since establishment) compared to JD 150.1 million in 2013 with increase of 8% and net post-tax profits were JD 123.9 million compared to JD 106.9 million in the last year with increase of 16%. With these results, equity rights reached JD 1038 million.
Marto added that the Bank Group achieved growth in most items of the balance sheet, where the assets' balance increased to reach JD 7.6 billion. Customer deposit balances increased to reach JD 5.5 billion and total credit facilities portfolio balance was JD 3 billion.
These results were positively reflected on the key financial solvency indicators of the Group, where the percentage of capital adequacy was 18.1%, significantly in excess of the percentage determined by the Basel Committee amounting to 8% and the percentage required by the Central Bank of Jordan amounting to 12%. Liquidity ratio amounted to 170%, which also exceeded the minimum required by the Central Bank (100%). The loans-to-deposit ratio was 49.8%, and the return on assets amounted to 1.7% and return on equity rights was 11.8%.
Marto gave a speech before the general assembly saying that with prudent policies that are applied, the Bank continued to maintain advanced positions in the Jordanian banking sector, with the first rank in volume of saving deposits in local currency. The Bank acquired good share of total assets with a percentage of 15%, and a share of 15.3% of customer deposits, and 11.3% of direct credit facilities. Market capitalization of the Bank's shares amounted JD 2.3 billion by the end of 2014 constituting 12.7% of total market capitalization of companies shares listed in Amman Stock Exchange.
Similarly, the Bank succeeded in making many quality achievements. In 2014, channels for customer care in the local market were enhanced and expanded, where new five branches were opened. Operating branches of the Bank in Jordan reached 124 branches thus maintaining a lead in this field. Nine new ATMs were added to reach in total 208 ATMs, which is the largest network in the local market. In this regard, Marto noted that 2014 witnessed the application of the New Core Banking System, where the process of transition from the old to the new system was made with awareness required for the transition requirements and with high degree of accuracy and professionalism, which enabled the completion of this process successfully and rapidly.
In the area of foreign bank activity, the Bank's external branches in Palestine and Bahrain, and subsidiary banks in Algeria and Britain showed good performance. Representation offices in Iraq, UAE and Libya continued to play a distinct role in the marketing of the Bank's services through the promotion of relations with customers "individuals and companies" in these countries. In this context, the Bank enhanced in 2014 investment in the capital of the Housing Bank/Algeria to reach a shareholding of 85% of the capital of this Bank, and the solvency of the International Jordan Bank/London, in which the Housing Bank has a 75% share, was enhanced
On the other hand, Marto appreciated that the Bank continues its social responsibilities and leading role in this area. The Bank during 2014 provided many of the sponsorships and initiatives to support various activities and institutions that target service and development of CSOs in various health, educational, cultural, technical, social, humanitarian, sport, and environmental activities and objectives. As a result of the Bank's attention in its role in social responsibility, the Bank issued a special report on social responsibility.
At the end of the speech, Marto directed thanks and appreciation to the Central Bank of Jordan for its continued support to the banking sector in Jordan. He also thanked the Securities Commission for its eagerness to manage capital market carefully, and made special thanks to the Bank's shareholders and customers for their precious trust. He made thanks and appreciation to the directors for their continued role and support and thanked the executive management for its permanent perseverance and sincere efforts in the service of Bank. Marto stressed the keenness of the board of directors and the executive management in exerting more efforts to serve Jordan and work on contributing to the promotion of progress and prosperity of the national economy under the leadership of His Majesty King Abdullah II Ibn Al-Hussein, patron of construction and modernization process, may Allah protect and bliss him.