Recommending a cash dividend of 20% of the share nominal value

Amman, 31 January, 2022

The Housing Bank for Trade and Finance, announced that the Group net profit increased to reach JD110.1 million for the year 2021, compared to JD42.5 million achieved during 2020.

 In light of the strong results achieved for the year 2021, the Board of Directors in its meeting held on 20/1/2022, recommended to the General Assembly, a cash dividend of 20% of the share nominal value for the year 2021, after the approval of the financial results for the year 2021. The financial results for the year 2021 and the dividend distribution proposed are subject to the approval of the Central Bank of Jordan.

Strong operational profits reflect the robustness of core banking operations

 During 2021, The Housing Bank Group was able to maintain strong operating profits, despite the decline in interest rates globally and the decline in non-interest income in the main Group’s markets impacted by the COVID-19 pandemic. This reflects the Group’s ability to achieve strong growth through effective resource management and sound expenses control measures.

Enhancing shareholders’ equity

 The Housing bank Group continued to report a sustainable growth in total shareholders’ equity, which increased by 4.7% to reach JD1.2 billion, despite the increase in loan loss provisions in 2021, in a step that reiterates on the Group's conservative approach towards risk management and enhancing the solidity of its financial position as well as shareholders’ equity. The Group's capital adequacy ratio reached 16.8% at the end of 2021, well above the Central Bank of Jordan and the Basel requirements. The return on shareholder’s equity also increased to 9.3% at the end of 2021.

Enhancing the quality of the credit facilities portfolio and increasing the coverage ratio of non-performing loans

 The Group continued to enhance the quality of its credit facilities portfolio and to support a wide array of projects that helped bolster the national economy and contributed to economic growth, sustainable development and social security. Non-performing loans ratio reached 5.1% in 2021, compared to 5.6% in 2020. Moreover, and due to an additional JD50 million booked in loan loss provisions in 2021, which come in continuation of the Group’s conservative approach, the coverage ratio of the non-performing loans exceeded 100% for the year 2021.

 In parallel, the Group also enhanced the coverage ratio of the performing loans classified under Stage 2, and was able to increase the coverage ratio for provisions of Stage 2 to reach 33% of total loans exposure under this stage at the end of 2021.

 Commenting on these results, Abdel Elah Al-Khatib, chairman of the board of directors, expressed his appreciation of the Housing Bank Group’s ability during 2021 to continue to achieve outstanding financial results and to maintain a strong operating profit and net profits that surpassed JD110 million, despite the challenging economic environment and the impact of the COVID-19 pandemic. This confirms the prudent assets and liabilities management of the Bank, and the adoption of a conservative and well-studied approach over the years, which enabled the Bank to enhance the solidity of its financial position and to ensure strong profits to the shareholders.

 Al-Khatib added that the Group continued to book additional provisions for the loan portfolio, which amounted to more than JD50 million booked during 2021, in addition to what was booked during the past year and previous years, noting that these conservative and preventive measures aim to safeguard and enhance the Bank’s financial position in light of the challenging economic situation and the negative impacts of the COVID-19 pandemic.

 Ammar Al-Safadi, Chief Executive Officer, stated that the Housing Bank has maintained its stern commitment to safeguarding the integrity and quality of its assets, while investing in operational efficiency and cost control measures, which helped strengthen the core operations and allowed for outstanding results in 2021.

 Al-Safadi also stated that the Bank continued to deliver its banking products and services by leveraging cutting-edge technologies and platforms, in addition to working with clients to gauge and meet their evolving needs, in accordance with the Bank’s prominent leading position in the Jordanian banking sector.

 Al-Safadi added that the Bank’s strategy moving forward will focus on digital transformation through state-of-the-art technologies like artificial intelligence, which stand to re-define the customer journey to deliver the best banking solutions to its customers.

 Al-Safadi also added that the Bank has maintained a strong capital base, with a total equity of JD1.2 billion, a capital adequacy ratio of 16.8%, and a liquidity ratio of 131% as of December 31, 2021— well above the Central Bank of Jordan and the Basel requirements.