Jordan Kuwait Bank posts $7.23 million net profits in 2000
Jordan Kuwait Bank (JKB) announced $7.23 million in net profits for the year 2000—60.8 percent higher than the $4.5 million figure in 1999. The results are mainly attributed to the growth in customers’ deposits and credit facilities which enhanced the bank’s performance indicators and ratios.
Customer deposits portfolio reached $478.8 million—28.4 percent higher than the $372.93 million figure in 1999. Credit facilities portfolio rose 24.6 percent from $216 million in 1999 to $270.13 million in 2000. The realized growth of customers’ deposits portfolio reached above 10 percent, and the credit facilities portfolio contributed more than 52 percent of the total growth realized by the whole Jordanian Banking sector during 2000.
Total balance sheet rose 43.9 percent from $534.55 million in 1999, to $769.32 million in 2000. ROA (return on assets) rose from 1.56 percent to 1.6 percent, and ROE (return on equity) reached 19.2 percent relative to 16 percent in 1999. Shareholders equity grew by 14.3 percent in 2000.
During the year, the bank was successful at expanding and diversifying its customer-base in addition to providing specialized services not yet available at most Jordanian banks. It introduced Internet banking and Mobile banking—thus becoming one of the first Arab banks to implement modern banking concepts widely accepted in the international banking Industry.
The Bank came out with a three-year strategic plan (2001-2003), which will be the base for the bank's new long-term strategy. The plan focuses on realizing a higher market share, enhancing the Bank’s financial position, raising profitability, and increasing all ratios and indicators, all of which reflect financial strength and management proficiency.
In the next meeting of the General Assembly of shareholders, the Board of Directors is to propose to increase in the Bank’s capital to $35.3 million through the capitalization of $7 million from the reserves—the equivalent to 5 million shares—so as to distribute them as bonus shares to shareholders at the rate of one new share for every four shares. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)