Al-Khatib: JD132.2 million pre-tax profits for 2019, and performance indicators confirm the bank's financial strength
During its meeting held on May 11, 2020, the General Assembly of Housing Bank for Trade and Finance (Housing Bank) officially approved the report of the bank's Board of Directors, the financial statements of the year 2019, and the Bank's business plan for the year 2020. The General Assembly also appointed Deloitte as an external auditor to audit the Bank's accounts for the year 2020.
Pursuant to the provisions of Defense Order No. (5) for the year 2020 and the procedures issued by His Excellency the Minister of Industry, Trade and Supply on 09/04/2020, and the approval of His Excellency on 30/04/2020, the Housing Bank forty-seventh ordinary General Assembly meeting was conducted using the Microsoft Teams video conferencing platform with a quorum of (94.07%).
The meeting was headed by Housing Bank's Chairman, H.E. Mr. Abdel Elah Al-Khatib.
Al-Khatib noted the results of Housing Bank's operations for 2019, underscoring that despite strong competition and economic challenges, the bank's total assets increased since December 2018 by 1.7% to reach JOD 8.4 billion as at the end of 2019. Customer deposits stood at JOD 5.8 billion as of the end of 2019, while total direct credit facilities reached JOD 4.6 billion and total equity amounted to JOD 1.1 billion. Total income for the year 2019 reached JOD 361 million, increasing by JOD 12.2 million above the same period last year. Housing Bank's profits before tax totaled JOD 132.2 million, compared to JOD 132 million for the previous year. The bank's net profits reached JOD 83.7 million compared to JOD 94.5 million in 2018.
Housing Bank's capital adequacy ratio and liquidity ratio stood at 17.3% and 128% respectively, both higher than the minimums requirements of the Central Bank of Jordan and the Basel Committee. The return on average assets and on average equity reached 1% and 7.6% respectively, while the non-performing loans ratio stood at 5.3%. According to the decision of the Central Bank of Jordan No. 1/1/4693 dated 9/4/2020, cash dividends will not be distributed to the shareholders for the year 2019.
In terms of the bank's market share, the Bank's market share reached 13.9% of the total banking sector total assets in Jordan and 13.7% of total customer deposits. The bank has maintained its strong presence in the Jordanian market with 125 branches (13.3% market share) and 226 ATMs strategically located nationwide, which in turn constitute about 12.2% of the local market. Globally, the bank operates 180 branches, in addition to its representative offices in Iraq, the United Arab Emirates, and Libya.
In light of Housing Bank's Corporate Social Responsibility and its national, human, and moral duty towards supporting the local community during the COVID-19 crisis, the Board of Directors has approved the decision to donate JOD 3.1 million to support the kingdom's national response to COVID-19, further demonstrating its commitment to Jordanians given the unprecedented challenges currently leveled against the country's institutions. Meanwhile, an additional JOD 500,000 was also donated through the bank's management and employees, in addition to donations made by the employees' Social Committee to the (We Cover Their Daily Wage); an initiative launched by a coalition of charitable organizations on the Naua platform, one of the Crown Prince Foundation's initiatives.
The bank also implemented several awareness and preventive campaigns to protect its employees and clients from COVID-19 and curb the spread of the disease in compliance with the government directives. The bank also worked on a parallel track on securing advanced infrastructure and technologies to maintain business continuity and functionality of all support services, while continuing to provide services to its clients during official lockdown periods across all branches and ATMs, and in line with the Central Bank of Jordan's directives adhering to strict social distancing and safety measures.
At the conclusion of his statement, Al-Khatib expressed the bank's appreciation to the Central Bank of Jordan, the Jordan Securities Commission, in addition to extending special thanks to shareholders, customers, the Board of Directors, executive management, and employees for their efforts. Al-Khatib also wished the bank continued success in light of the combined efforts of its teams and management, under the leadership of His Majesty King Abdullah II.