Approval of the Final Financial Statements for 2016 and a Declaration of Stock Dividend of 30%

Al-Khatib: 190.3 Million Dinars Profit before Income Tax for 2016 and Performance Indicators Confirm the Solvency and Financial Strength of the Bank

The General Assembly of the Shareholders of Housing Bank approved in its ordinary meeting on 23/04/2017 the Board of Directors' report and approved the financial statements 2016 and the future plan for 2017. The General Assembly approved the Board's recommendation to distribute 30% of the nominal value of the shares to the shareholders.

They also elected the Board of directors for the next session, including:

• Gentlemen of Qatar National Bank (four members)
• Gentleman of Kuwait Real Estate Investment Consortium (one member)
• Gentlemen of the Libyan Foreign Bank (two members)
• Messrs. General Organization for Social Security (two members)
• His Excellency Mr. Abdel-Elah Mohamed Al-Khatib
• Dr. Yasser Manna Al-Adwan
• Mrs. Sheikha Bint Yousef Al-Farisi
• Mr. Fawzi Yousef Abdul Muhsen Al-Hanif

The General Assembly also approved at the extraordinary meeting on 23/4/2017 to raise the authorized, and paid-up capital of the Housing Bank by 25% to become JD 315 million divided into (315) million shares.

Covering the increase through the inclusion of the voluntary reserve and part of the share premium, and to distribute the capital increase as a free share to the shareholder at the end of the fifteenth day of the date of registration with the Securities Commission, according to their share in the capital.

His Excellency Mr. Al-Khatib chaired the two meetings, where he addressed the achievements of the Bank for the year 2016.  He pointed out that the Bank Group achieved profits during 2016 that exceeded the previous year profit. The pre-tax profits amounted to JD 190.3 million, with an increase of JD 13.3 million representing increase of 7.5% over the previous year.

The net profit after tax amounted to JD 131 million, with an increase of JD 6.3 million, representing increase of 5% over the previous year. Total income grew by 5% over the previous year. Total income grew by 5.3% to reach JD 364.6 million.

Mr. Al-Khatib added that the bank's group achieved growth in most items of the balance sheet; total assets reached JD 7.8 billion, while customer deposits amounted to JD 5.6 billion. The total direct credit facilities increased to reach JD 4.3 billion at the end of 2016. Total equity is about 1.1 billion Jordanian dinars.

These results positively reflected on a number of key performance indicators, enhancing its financial strength, solvency, and capital base and the quality and safety of its credit and investment portfolios.

Capital adequacy ratio stood at 17% and liquidity ratio stood at 125.7%, which are higher than the ratios required by the Central Bank of Jordan. The rate of return on assets (after income tax) was 1.7% compared to 1.6% in 2015. The rate of return on equity (after income tax) was 12.5% compared to 12% in 2015. The ratio of net non-performing loans, NPLs decreased to 3.7% compared to 4.8% in 2015.

On the other hand, Al-Khatib expressed his pride at the bank's continued social responsibility, which is implemented in planned and purpose-driven manners.

At the end of his speech, Al-Khatib thanked the Central Bank of Jordan Securities Commission. He also gave a special thanks to the bank's shareholders, clients, executive management and employees, whishing the bank further prosperity to better serve the Kingdom under the guidance of His Majesty King Abdullah II.