Jordan Kuwait Bank announced outstanding financial results for the first half of the year 2005. The interim financial statements demonstrate significant growth in all business activities of the Bank.
Abdel Karim Kabariti Chairman & CEO, Jordan Kuwait bank announced "Our results are in line with our growth pace set during the past few years, and highlight the consistent year - on- year growth we were able to achieve across the bank's core business.
Mr. Kabariti added:" The results confirm our commitment to the prudent policies that assure balanced growth based on strategic objectives. Since the beginning of the year, the bank was highly conservative in extending financing to stock market speculations, and at the same time, was very active in providing loans and advances and other banking services to major local economic sectors of trade and industry, also expanding business relations with major regional financial and investment entities especially from the Arab Gulf States. In this respect, it is worth mentioning that 92.5 per cent of our operating income for the period was generated from pure banking activities and only US$ 3 million were of capital gains, yet most of these gains were realized by our subsidiaries" Kabariti added.
The first six month of 2005 witnessed important developments in the bank's branch network. New branches were opened in several locations and the bank's existence through Jordan post company offices was increased. JKB's plan to increase its presence abroad was reactivated; accordingly the bank will open a regional office in Ramalla - Palestine aiming to have more branches in the area. Also branching in one of the Arab Gulf states is an issue of consideration in the time being.
As for financial results Kabariti highlighted on some major items of the balance sheet and income statement. He said: " Total assets at the end of June grew by 14.8 per cent to US$ 1.44 billion, compared to US$ 1.25 billion as at December 31.2004. Total credit facilities-net reached US$ 706.3 million, a 12 per cent growth over December 31, 2004 and 22 per cent over June 30, 2004. NPL's recorded again another ever known low ratio of 1 per cent only as it dropped from 2.5 per cent in the same period last year. Customers' deposits grew by 14.6 per cent to reach US$ 868 million. Cash margins also recorded a firm growth of 15.2 per cent to reach US$ 179.6 million. Total Shareholders' equity increased by 7 per cent to US$ 121.4 million as at June 30, 2005.
Commenting on the Bank's share from subsidiaries profits, Kabariti praised the results of the two companies and their continued progress adding that JKB's share from their profits reached US$ 2.4. million compared to US$ 0.516 million for the same period last year, an indication of the bank's and subsidiaries success in tuning up their services and products, and providing comprehensive solutions to customers within the quality standards adopted by the Group as a whole.
