The Jordan Kuwait Bank, Jordan’s third largest bank in terms of market capitalization, has achieved significant revenue growth in the past five years, with 2005 and YTD Q3 2006 being remarkably outstanding. The bank’s revenues grew by 36.4% during the first nine months of 2006 and as compared to the corresponding period of 2005, while net profits for the same period grew by a substantial 44.3%. The bank clearly benefited from booming regional and local economies and stock markets in 2005, and its robustness was exemplified as it continued to grow in 2006 at a time when stock markets entered into a sharp correction. According to Arab Advisors Group’s analysis and valuation, the Jordan Kuwait Bank stock has room to adjust for it to properly represent the fair market value of the bank’s equity. Arab Advisors Group is a member of the Arab Jordan Investment Bank Group.
A new equity report, “Jordan Kuwait Bank Initial Coverage” was released by the Arab Advisors Group’s Financial Markets Strategic Research Service on December 27, 2006. This report can be received from the Arab Advisors Group free of charge. The 44-page report provides a comprehensive background on the Jordan Kuwait Bank and a detailed analysis of its performance during 2005 and up to September-end 2006. The Jordan Kuwait Bank is thoroughly profiled, highlighting its major accomplishments during the aforementioned period, including an examination of its major strengths and challenges that lie ahead. The report concludes by offering our opinion on the fair market value of the Jordan Kuwait Bank’ equity. The valuation is based on both historical information and a set of justified assumptions. Arab Advisors Group’s analysis of the stock yields a fair market value estimate of JD 6.13.
Please contact the Arab Advisors Group to get a copy of the full report.
Arab Advisors Group’s analysis reveals that despite its strong performance during 2005 and the following first nine months of 2006, the Jordan Kuwait Bank remains lagging in certain core-business indicators. Interest income/interest expense came in at 2.39 times by Q3-end 2006 as opposed to other peers mentioned in the report that were managing a rate of 3-times. However, and notwithstanding certain negative external factors (a highly competitive local market, a regressive monetary policy and the regional political landscape), the Jordan Kuwait Bank is thoroughly capable of further enhancing its balance sheet and maximizing shareholder wealth during the coming years.
The Arab Advisors Group’s team of analysts in the region has produced a number of equity reports on companies and sectors within the Amman Stock Exchange (ASE) and the Doha Securities Market (DSM). Currently, company equity reports are delivered free of charge as a special promotion. To have your address added, please contact us at [email protected]
Moreover, the Arab Advisors Group’s team of analysts in the region has produced close to 700 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 395 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients. Some of our clients can be viewed on http://www.arabadvisors.com/clients.htm
Special note to the editors: Kindly use Arab Advisors (not AAG) when abbreviating Arab Advisors Group. AAG is not a suitable abbreviation since it conflicts with the name of another company not related at all to Arab Advisors Group. Arab Advisors Group’s Arabic name is مجموعة المرشدين العرب Please include our name in English in brackets after the name in Arabic
Arab Advisors Group, a member of the Arab Jordan Investment Bank (AJIB) Group, provides reliable research, analysis and forecasts of Arab communications, media, technology and financial markets. Arab Advisors Group Strategic Research Services (Media and Telecoms) are annual subscriptions. The services cover Nineteen countries in the Arab World: Lebanon, Syria, Jordan, Palestine, Iraq, Egypt, Sudan, Mauritania, Saudi Arabia, Yemen, UAE, Kuwait, Qatar, Bahrain, Oman, Libya, Tunisia, Algeria, Morocco and Mauritania. For more information, please contact the Arab Advisors Group offices. www.arabadvisors.com
