The Housing Bank for Trade and Finance, the most widespread bank in the kingdom, reported a decline in net profit by 31% to reach JD26.6 million for the first half of 2020, against JD38.8 million reported during the same period last year.

 As a result of the difficult economic situation across the whole world and the negative expectations of the economic growth as a result of COVID -19 pandemic, the Bank continued its conservative approach to build additional provisions for the loan portfolio. As a result, the Bank booked additional loan loss provisions amounted to JD58.5 million during the first half of 2020. This led the coverage ratio of the non-performing loans to exceed 100%.

 The Bank continued to report an increase in total income, which increased by 1.3% to reach JD182.2 million for the first half of 2020, despite the decrease in interest rates across the world and the decrease in non-interest income as a result of COVID -19 pandemic. The Bank succeeded in its efforts to control costs, as the efficiency ratio improved to reach 44.2% as at end of June 2020.

 Total credit facilities increased by 2.4% to reach JD4.7 billion as at end of June 2020.

 Commenting on these results, H.E Mr. Abdel Elah Al-Khatib, chairman of the board of directors, said that the Bank continued to perform strong operational results before COVID -19 pandemic despite the challenging economic distress, explaining that COVID -19 pandemic will negatively affect the whole world economy. Mr. Al-Khatib added, that these results are a testament of the Bank's strong and well balanced performance and its ability to sustain solid financial position despite difficult challenges, wishing that all efforts will collectively participate in supporting the Kingdom's national response to this pandemic.

 Mr. Ammar Al-Safadi, Chief Executive Officer, stated that the results achieved reflect the Bank's commitment in managing all risks efficiently to protect and strengthen the Bank's assets. The Bank increased its loan loss provisioning on the performing loans, as a precautionary measure in light of the recent COVID -19 pandemic. Mr. Al-Safadi added that the Bank maintained strong capital base, with total shareholders' equity amounted to JD1.1 billion. Capital adequacy ratio and liquidity ratio reached 17.3% and 120% respectively as at 30 June 2020, both ratios are above the Central Bank of Jordan and Basel requirements.