Jordan Islamic bank (JIB), one of the subsidiary banking units of Al Baraka Banking Group, achieved net profits before tax reached USD 55.99 million at end of financial year 2011 compared to USD 57.40 million for the year 2010 whereas its net profits after tax reached USD 39.92 million at end of 2011. Adnan Ahmad Yousif, Chairman of the Board of Directors of Jordan Islamic Bank stated that the Board approved the financial statements and recommended to be presented in the General Assembly ordinary meeting that will be held on 25/4/2012 by distributing cash dividends to shareholders by15 % of the bank's capital. The Extraordinary General Assembly recommended to increase the bank's capital from USD 141.04 million / share to USD 176.30 million / share by distributing bonus shares by 25% after amending the articles of association, the company's internal system and completing the official approvals from Ministry of Industry and Trade and Financial Securities Commission. Yousif added that despite the crises that global economy and surrounding area witness and their negative impacts on the national economy, Jordan Islamic Bank continued its mission in Islamic banking, achieving pleasing successes by getting many credit ratings and global prizes which indicate Jordan Islamic bank's strength, flexibility and its ability to confront the difficult and fluctuated political, financial situations worldwide. In addition, they show the management's ability to implement a package of banking policies and Islamic financial solutions that keep abreast of the developments that Islamic banking industry witnesses in accordance with sharia principles. Concerning the most prominent financial indicators of JIB ,Musa Shihadeh, Vice Chairman & General Manager of JIB, said the bank was able to strengthen its position in the Jordanian banking sector through the obvious growth reflected in its financial indicators till 31/12/2011. The total clients' deposits reached at end 2011 USD 3.716 billion compared to USD 3.306 billion in 2010 with an increase of USD 410 million by a growth of 12.4%. Thus, this indicates the extent to which clients are confident of Jordan Islamic bank in various activities offered in accordance with the provisions of Islamic Sharia. The bank runs money in specified investment, investment portfolio and investment by proxy that reach around USD 355 million. Shihadeh added that clients' deposits with the managed accounts added to (specified investment accounts, Muqarada Bonds, investment by proxy accounts) reached at end 2011 about USD 4.033 billion compared to USD 3.653 billion at end 2010. Shihadeh indicated that the increase in finance and investment at end 2011 reached about USD 122.71 million to become about USD 2.186 billion compared to USD 2.063 billion as at end of 2010 and with a growth of about 6%, asserting the development of the bank's activities in the various investments and financing activities. The total assets at the end of 2011 reached about USD 4.087 billion compared to USD 3.673 billion as at the end of 2010 with an increase reaching USD 414 million and with a growth of 11.3 %. The total of the bank's balance sheet including the managed accounts ( specified investment accounts, Muqarada bonds, investment by proxy accounts) reached as at the end of 2011 about USD 4.443 billion compared to USD 4.063 billion. Shihadeh added that Joint investment profits before distribution reached about USD 155.15 million, the general percentage for distributing profits to JD accounts reached 3.35% and in foreign currencies 0.69%. Capital adequacy ratio (CAR) reached at the end of 2011 about 24. 48% compared to about 21.57% at the end of 2010, according to capital adequacy standard of Islamic banks issued by Central Bank of Jordan (CBJ) based on the standard issued by Islamic Financial Services Board ( IFSB) Shihadeh stated that Shareholders' equity at end 2011 reached about USD 291.82 million compared to USD 273.06 million at end of 2010 and with a growth of 6.9%. The of return rate on average shareholders' equity before tax reached about 19.8% and after tax about 14.2%. The rate of return on paid up capital reached 28.3%. Shihadeh added that the Bank continues to accomplish further development and updating in the field of banking techniques, most notably: Implementation of the new banking system in more branches and cash offices in parallel with the banking system being used by the Bank. However, the new banking system has been applied in 33 branches and 7 cash offices up till now , in addition to Install and operate new Automated Teller Machines (ATM) whose numbers reached ( 108) machines and expand in providing Short Messages Services (SMS) and the banking services provided via internet (I-Banking). It is worth mentioning that the share of our bank to the total assets of banks working in Jordan at the end of 2011 reached 8.4%, to the total of other banks' saving schemes 11.6%, and to the balances of finance and investment for other banks reached 11.2%. Press Release
