Jordan Kuwait Bank announces its financial results for 2009
22/2/2010
Jordan Kuwait Bank announced its results for the year 2009. Mr. Abdel Karim Kabariti Chairman of the Board of Directors said that these results are in conformity with the Bank’s record of achievement attained during the past years, despite the unusual circumstances that prevailed in 2009. The results affirm the strength of the bank's financial position and its sound capital base.
Total assets at year-end increased to JD 2139 million, a growth of 3.7% from the previous year. Net credit facilities dropped by 12% in 2009 and recorded JD1089 million, due to reduced demand for credit by some economic sectors and individuals as well as the continued regular loans repayments by other sectors. On the other hand, customers’ deposits and cash margins grew by 3.8%.and amounted to JD 1358.5 million, thus reflecting positively on the liquidity ratio which had risen to satisfactory levels.
Net profit after tax and minority interest amounted to JD 43.85 million, while the total equity of the Bank Group increased to JD 292.75 million, of which JD 286.6 million pertains to the Bank’s shareholders.
Kabariti noted that the management of the Bank was the former in predicting the consequences of the financial and economic crisis and took all actions and measures to mitigate the impact since the onset of the crisis. Efforts were focused primarily on providing the support required to help clients address the difficult economic conditions, and at the same time, to protect and maintain the gains and achievements made by the Bank over the past years. He added that the management of the Bank was in touch, throughout the year, with various segments of customers to discuss their needs and explore means to help them face the difficult circumstances.
With regard to the Bank, Kabariti assured that there would be no leniency in preserving the gains and achievements of the past years in terms of quality and diversity of products and services, as well as the Bank’s excellent performance level. He also stressed that the Bank will enter 2010 with no preconceived notions of its difficulties, and without being over-optimistic or over-pessimistic, with full awareness of the magnitude of the challenges on the macroeconomic level.
Kabariti expressed his confidence that the Bank can achieve better in the coming period, especially if the signs of economic recovery continue to materialize. He pointed out that Jordanian banks in 2010 will be more flexible in funding economic activities and consumer investment, after they completed the process of adjusting to new situations and enhanced their self-confidence. In this regard, Kabariti commended actions and initiatives taken by the Central Bank and its direct guidance of the banking sector since the crisis began aiming at developing mechanisms to stimulate the economy and maintain the strength and integrity of the banking system. He also noted the new regulations issued by the Central Bank before the end of 2009 regarding allocation, classification and treatment of debt, what can be considered an important and positive step towards addressing some aspects of the economic crises, and helping a number of economic sectors to overcome the recession that hit during the year.
Mr. Kabariti announced that, in the light of the results and profits in 2009, the Bank's board decided to recommend to the General Assembly a cash dividend of 15% of the capital, which is equivalent to JD15 million, and retain the rest of the profits to further strengthen the Bank’s capital base and enhance its capacity to respond to the funding needs of its clients and support the requirements of growth in 2010.
