Jordan Kuwait Bank (JKB) has reported a 60.8 percent jump in net profits for the year 2000, which amounted to $7.23 million compared to $4.5 million in 1999, the chairman of JKB said on Saturday, February 3. The bank's chairman, Abdul Karim Kabariti, said the results are attributed mainly to the growth in customers' deposits and credit facilities, which reflected positively on the bank's financial results and further enhanced its performance indicators and ratios.
The customer deposits portfolio grew 28.4 percent from $372.93 million in 1999, to $478.8 million, while the credit facilities portfolio rose 24.6 percent, from $216 million in 1999 to $270.13 million in 2000.
The realized growth in the bank's customers deposits portfolio constituted more than 10 percent, and the credit facilities portfolio contributed more than 52 percent of the total growth realized by the whole Jordanian banking sector during 2000, according to Kabariti.
Total balance sheet rose 43.9 percent, from $534.55 million in 1999 to $769.32 million. Accordingly, ROA (return on average assets) rose to 1.6 percent, from 1.56 percent in the previous year, and the ROE (return on average equity) recorded 19.2 percent, against 16 percent in 1999. Shareholder equity grew by 14.3 percent in 2000.
The bank was successful at expanding and diversifying its customer base and providing specialized services and products not yet available at most banks in Jordan, said the chairman. In 2000, the bank introduced electronic banking channels, such as Internet banking and mobile banking, becoming one of the first Arab banks to implement modern banking concepts which conform to the international banking industry. “This gave the bank a competitive edge and greatly improved its public image and confirmed its position among the leading Arab banks,” said Kabariti.
The bank has drawn up a three-year strategic plan (2001-2003) which will constitute the base for the bank's new long-term strategy. According to Kabariti, the objectives of the plan focus on realizing a tangible share of the market, enhancing the bank's financial position, boosting its profitability and raising all ratios and indicators, which reflects financial strength and management efficiency.
The bank will capitalize on its record of success during the previous years, an objective assessment of its present and future potential and an in-depth analysis of opportunities and challenges, Kabariti said, to keep the positive momentum it has seen in recent years going on. “We are determined to maintain our progress, with the support of our shareholders and strategic partners, and [based] on the trust and loyalty of our customers,” added Kabariti.
In order to enhance the bank's capital adequacy, consolidate its financial base and realize the objectives of its business and strategic plans for the coming years, Kabariti says, the bank's board of directors will propose to the general assembly, in its forthcoming meeting, to carry forward the profits of 2000 and to increase its capital to $35.3 million through the capitalization of $7 million from the share premium reserve (equivalent to 5 million shares), and distribute them as bonus shares to the shareholders at the rate of one share to each four shares.
JKB was established in 1976 as a joint venture by Jordanians, Kuwaitis and other Arab investors. — ( Jordan Times )
© 2001 Mena Report (www.menareport.com)
