2018 Financial results approved with a dividend distribution of 15% of the share nominal value.

Al-Khatib: JOD 132 million in pre-tax profits in 2018, with indicators showing the bank's financial strength

During its meeting held on April 25th, 2019, the General Assembly of the Housing Bank for Trade and Finance (Housing Bank) approved the Board of Directors report and the financial results for the year 2018, as well as the bank business plan for 2019. The General Assembly also approved the recommendations of the Board to distribute a cash dividend to shareholders at a rate of 15% of the share nominal value.

 The meeting was headed by H.E. Mr. Abdel Elah Al-Khatib, the Chairman of the board of directors, who noted that despite increasing competition and prevailing economic challenges, the bank was able to register balanced financial growth in 2018. Al-Khatib reported that the bank's total income grew by 7% to reach JOD348.8 million in 2018 due to a notable increase in net interest income, commission income, and other key indicators. The bank also registered pretax profits of JOD132 million compared to JOD180 million in 2017, with net profits totaling JOD94.5 million compared to JOD125.2 million in 2017. This decrease is attributable to the implementation of the International Financial Reporting Standard 9 (IFRS9), in which provisions amounting to JOD63 million were booked, which will strengthen the bank's financial position.

 Meanwhile, the bank's other financial indicators also showed solid performance, with the capital adequacy ratio reaching 16.1% and the liquidity ratio 124%, both of which are higher than the rate required by the Central Bank of Jordan. Return on assets totaled 1.1%, return on equity 8.6% and the non-performing loans ratio reached 4.3%.

 Al-Khatib added that total assets increased by 2% to reach JOD8.3 billion, meanwhile, total customer deposits reached JOD5.9 billion with a 1% growth. Total direct credit facilities grew by 3.5% to reach JOD4.6 billion in 2018, while total shareholders' equity reached JOD1.1 billion.

 Competition wise, the bank's market share totaled 14.3% of market assets, 14.5% of customer deposits, and 13.7% of direct credit facilities. The bank continued to lead the local market in the total number of savings accounts in the local currency, boasting an impressive 36.5% market share, in addition to possessing the largest number of ATM machines at a market share of 13.4%.

 Moreover, in line with the bank's firm belief that social responsibility is the cornerstone of sustainable development, the bank continues to implement a forward-thinking social responsibility strategy that targets key sectors nationwide, including health, education, culture, youth and the environment. The year 2018 had seen the publication of Hosing Bank's first Annual Sustainability Report, which was adopted by the Global Reporting Initiative. The report falls in line with the bank's ongoing efforts to make a measurable positive contribution to sustainable development in the kingdom, focusing on clear economic, social and environmental pillars.

 Meanwhile, Housing Bank received five accolades from international awarding bodies in 2018, including Best Bank in Jordan for 2018 by Banker Middle East. These awards came in recognition of the banks' continued focus on quality, diversity and customer experience.

 At the conclusion of his statement, Al-Khatib expressed his gratitude to the Central Bank of Jordan, the Securities Commission and the Companies Control Department. He also thanked the shareholders, the Board of Directors, the Executive Management and the employees of the Bank, wishing the bank and its stakeholders continued growth and prosperity.