Housing Bank Holds the Annual Shareholder Meeting
Adoption of Final Statements and Distribution of 30% on Shareholders
Marto: Profits were JD 150 million in 2013 and performance indicators confirm the financial strength of the Bank
The general assembly of the Housing Bank's shareholders approved in its ordinary meeting on 24/4/2014 on the report of the board of directors and adopted the financial statements for 2013 and the future plan for 2014. The general assembly approved the Board's recommendation to distribute dividends to shareholders by 30% of the nominal value of shares.
Michel Marto, the Bank's Chairman addressed a speech to the shareholders at the meeting that the Bank Group achieved during 2013 profits exceeded those achieved during the last year despite difficult political and economic conditions that took place in most of the countries in region, especially neighboring countries. Pretax profits were JD 150.1 million compared to JD 142.2 million in 2012 with increase of 5.6% and net post-tax profits were JD 106.9 million compared to JD 104.5 million in the last year. With these results, equity rights reached JD 1.1 billion.
Marto added that the Bank Group achieved growth in most items of the balance sheet, where the assets' balance increased to reach JD 7.2 billion. Customer deposit balances increased to reach JD 5.1 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 18.8%, 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 159%, which also exceeded the minimum required by the Central Bank (100%). The loans-to-deposit ratio was 52.3% which is appropriate in such conditions. The return on assets amounted to 1.5% and return on equity rights was 10.2%. Efficiency index, i.e. "expenses to total income ratio" was about 37%, which is one of the best levels achieved in local and regional banks.
These positive results were realized despite the low exchange rate of the Syrian lira, and the impact on the consolidated balance sheet of the Bank as a result of integration of budget items of the International Bank for Trade and Finance/Syria (subsidiary bank) with corresponding items in the consolidated balance sheet of the Bank.
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 14.8%, and a share of 15.8% of customer deposits, and 11.6% of direct credit facilities. It is worth noting in this area that market capitalization of the Bank's shares amounted JD 2.2 billion by the end of 2013 constituting 12% of total market capitalization of companies shares listed in Amman Stock Exchange.
Similarly, the Bank succeeded in making many quality achievements. In 2013, channels for customer care in the local market were enhanced and expanded, where new three branches were opened. Operating branches of the Bank in Jordan reached 119 branches thus maintaining a lead in this field. Five new ATMs were added to reach in total 199 ATMs, which is the largest network in the local market.
In the area of foreign bank activity, Marto explained that the Bank's external branches in Palestine and Bahrain, and subsidiary banks in Algeria and Britain showed good performance. The subsidiary bank in Syria was able to maintain good financial position and strong financial solvency and liquidity despite of difficult conditions in Syria. 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.
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, including "senior management and staff" for their permanent perseverance and sincere efforts in the service of Bank to ensure the continued growth and development, the improvement of services provided to customers and the development of products. Marto noted the keenness of the board of directors and senior 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.