7th APRIL 2015 - Vol.XXXVIII No.018
Business News

Jordan Islamic net profit rises 3pc to $29 million

AMMAN: Jordan Islamic Bank, a subsidiary of Bahrain-based Al Baraka Banking Group, said first-half net profit rose three per cent to 20.7 million Jordanian dinars ($29.2m) on the same period a year ago.

The bank's total assets rose 5pc to 2.28 billion dinars ($3.2bn) at the end of June against 2.17bn dinars at the end of June last year, the bank said yesterday.

Deputy chairman and chief executive officer Musa Abdelaziz Shihadeh said the results reflected the consolidation and growth of Islamic banking services in Jordan in a commercial banking sector whose profitability has suffered from the global downturn.

"We are seeing growth in profits, assets and the deposit base of the bank... this proves the success of Islamic banking services in Jordan," Shihadeh said.

Jordan Islamic Bank is the largest and the oldest among three Islamic banks operating in Jordan in a market with tough competition among 23 commercial banks.

The bank's loan portfolio increased 9pc in the first six months of the year to 1.216bn dinars from 1.115bn dinars at end of June last year.

Shihadeh said the bank was able to maintain robust lending despite a global downturn that has seen many banks in Jordan adopting tighter credit policies as the result of slower growth and a slump in domestic consumption.

The bank had capitalised on rising interest in Sharia-compliant banking in Jordan, according to bankers.

Total customer deposits rose 8.8pc in six months to 1.685bn dinars from 1.550bn dinars.

An extraordinary AGM of the bank last month approved a board recommendation to raise its capital to 100m dinars from 81.25m dinars.

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