The Export and Finance Bank (EFB) has announced net earnings of JD1.858 million for the nine-month period ending Sept. 30, 2000 — a growth of around 36 percent over the same period in 1999, a statement by the EFB said.
The bank reviewed interest rate policy on a regular basis throughout the nine-month period and continuously made necessary adjustments to reflect market conditions.
Despite consecutive reductions in interest rates on credit facilities in response to changes in the operating environment, interest income over the last nine months reached JD4.703 million — a growth of around 29 percent compared to the same period in 1999. This was achieved by an increase of 40 percent in total credit facilities to around JD87 million.
As a result of the recent changes in the draft Banking Law that allowed tax deductions for provisions of doubtful debts, income tax provisions were decreased by 13.7 percent.
Income generated from investment banking services over the nine-month period reached around JD539,000. The EFB Investment Banking Unit continued to provide a wide range of corporate finance activities, including arrangements of corporate bond issues, placements of private equity, and providing financial advisory services related to privatization, mergers and acquisitions.
The bank was successful in closing several major transactions throughout the nine-month period, including the landmark privatization of the Jordan Telecommunications Company, and the issue of a JD5 million 5-year bond for Middle East Complex.
The EFB Investment Banking Unit is currently engaged in several private equity transactions and acquisitions deals and is expected to close a number of them before year-end.
Earnings per share for the nine-month period registered JD0.084, and is expected to reach around JD0.126 per share at year-end as a result of anticipated net profits for the year ended Dec. 31, 2000 amounting to around JD2.75 million. — ( Jordan Times )