Jordan Kuwait Bank (JKB) announced its financial results for the year 2007.
17/2/2008
Jordan Kuwait Bank (JKB) announced its financial results for the year 2007. Mr. Abdel Karim Kabariti, chairman of JKB confirmed that the 2007 achievements were very impressive and are inline with the growth trend maintained by the bank during the past ten years.
Total assets grew by 22.24% to USD2.85 billion, with an increase of USD517.6 million over 2006, Credit facilities (net) amounted to USD1.59 billion at the end of 2007, a 17.55% growth over last year’s figure. In the meantime, NPL ratio was further improved to a new record low of 0.2% down from 0.3% in 2006. The credit portfolio’s diversified base, sound collaterals and clear objectives helped in securing consistent growth rates as will as recording the lowest NPL ratio at both local and international banking sectors. Customers’ deposits and cash margins increased by 15.73% and reached USD1.73 billion as at December 31, 2007.
Total income for the year amounted to USD136.5 million, an increase of 21.4% over 2006; this is attributed to the growth in various bank activities including credit, treasury, trade finance and the private banking. Net interest and commission realized a 20.8% growth and reached USD 112.7 million.
Income for the year (after tax) pertaining to bank shareholders amounted to USD62.6 million, a growth of 13.4% over 2006, Owners’ equity-bank shareholders’- grew by 15.6% and reached USD306 million compared to USD 264.7million in 2006.
Financial indicators and efficiency ratios maintained their high levels among the best local and international standards. Return on equity recorded 30.2%, and the Return on average assets 3.47%. The ratio of general and administrative expenses to average assets recorded a clear improvement as it dropped to 1.1.47% from 1.53% in 2006. A similar improvement was witnessed by the ratio of general and administrative expenses to gross income as it declined to 16.42% from 18.66% in the past year.
Kabariti announced that in view of the 2007 financial results, the Board of Directors had decided to recommend to the Bank’s General Assembly the disbursement of JD15 million (USD21.15m) of profit as cash dividends to the shareholders at the rate of JD0.200 (USD0.28) per share, in addition to capitalizing the sum of JD25 million (USD35.3m) from the share premium reserve to be distributed to the shareholders as bonus shares at the rate of one share for every three shares held. The distribution of these shares will bring the bank’s paid up capital to JD100 million (USD141 million).
