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Banking industry

Jordan Islamic Bank Reports 15.1% Net Profit Growth for 2021

Strategic Insights

— 2 min read

Jordan Islamic Bank announced a significant growth in its net profits, achieving JD 96.5 million in 2021, a 15.1% increase from the previous year. Despite the challenges posed by the COVID-19 pandemic, the bank maintained its financial stability and implemented its strategy to face various risks while maintaining its advanced position in the local banking sector. The bank's assets grew by 9.7% to reach JD 5.953 billion, with a growth rate of 10% in savings schemes, reaching JD 5.283 billion distributed over 1146 thousand active accounts.

Key Takeaways:

  • The General Assembly of Jordan Islamic Bank approved a cash dividend distribution of 25% of the bank's capital for the year 2021, totaling JD 50 million.
  • The bank maintained its share of the Jordanian banking market until 31/12/2021, with a total financing and investment balance of about 15.5% of the total assets of other working banks in Jordan.
  • The bank's total balance of savings schemes, including specified investment accounts and wakala investment accounts (investment portfolios), reached about JD 5.283 billion, achieving a growth of about 10% compared to the previous year.
  • The bank's total financing and investment balances, including specified investment accounts and wakala investment accounts (investment portfolios), reached JD 4.741 billion, distributed to 234.1 thousand transactions, with a growth rate of about 10.7% compared to the previous year.
  • The bank has strengthened its geographical presence in various parts of the Kingdom, with 110 branches and offices, and has provided its banking services compatible with the provisions and principles of Islamic Sharia.
  • The bank has continued to implement its plan to expand the provision of services through its electronic channels, including the instant transfer service to local bank accounts (CliQ) and the electronic banking account opening service.

Statistics:

  • Net profits before tax: JD 96.5 million (2021), JD 83.8 million (2020), growth rate of 15.1%.
  • Profits after tax: JD 59.1 million (2021), JD 52.1 million (2020), growth rate of 13.3%.
  • Joint investment revenues: JD 214 million (2021), JD 200 million (2020), growth rate of 7.1%.
  • Shareholders' equity: JD 510 million (2021), JD 474 million (2020), growth rate of 7.4%.
  • Capital Adequacy Ratio (CAR): 23.01% (2021).
  • Non-Performing Finances (NPFs) ratio: 2.57% (2021).
  • Savings schemes balance: JD 5.283 billion (2021), JD 4.803 billion (2020), growth rate of 10%.
  • Total financing and investment balances: JD 4.741 billion (2021), JD 4.282 billion (2020), growth rate of 10.7%.

Sources:

  • Jordan Islamic Bank news release (April 27, 2022)
  • Defense Order No. 5 of 2020 issued under the Law Defense No. 13 of 1992
  • Jordan Ministry of Industry, Trade and Supply procedures (April 9, 2020)
  • Companies Controller approval dated April 9, 2020

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