The Jordan Commercial Bank (JCBank) held both its ordinary and extraordinary general assembly meetings on Saturday March 25th 2006.
The meetings, which were held at the Association of Banks in Jordan, served as a perfect opportunity for the bank's board members and Chairman Mr. Michele Sayegh to discuss both the financial annual report for the business year ending December 31st 2005, and the bank’s operational strategy it plans to adopt for the current year.
During the meeting's proceedings, Mr. Sayegh announced that the bank's net profits as calculated prior to tax deduction almost tripled what they were recorded to be in the year 2004. From the year 2004 to 2005, the bank's net profits have gone up from JD3.68 million, to JD13.02 million, which in turn constitutes to an increase of 254%.
On another level the bank's existing assets have gone up from JD220.5 million in 2004 to JD363 million in 2005; which in turn constitutes to an increase of 65%. During the same year, the bank's client deposits also increased by 77% to reach a total of JD240.7 million. Investors' equity was also on the rise for it went up from JD 45.6 million in 2004 to JD66.9 million by December 31st 2005, and finally investors' revenues increased from 8% in 2004 to 23% in 2005.
In light of these notable achievements Mr. Sayegh said, "Our strategy is one based on excellence and thus the rise in our net profits is only the outcome of our commitment towards continuously developing the quality of our services. JCBank saw a phenomenal growth in its operations this year, and this growth was translated into an increase in profits and banking revenues. The results speak for themselves, and they show how JCBank was able this year to utilize its sources of funding to in turn ensure the highest rate of return on investment, within acceptable levels of risk. We at the bank reaped the benefits of the booming economy of Jordan, which brought with it a rise in the demand for financial, investment, and credit services. I am sure that you can all affirm that last year was one filled with impressive achievements, and I hope that the financial results for this year would be just as good if not better."
Mr. Sayegh and all board members present agreed that to maintain a high level of performance this year, their operational strategy for the year 2006 should be one based on providing innovative and advanced financial services to clients.
Mr. Sayegh added that the bank saw a notable increase in its client deposits which exceeded expectations and the standards of the Jordanian financial sector at large. The increase in this particular area of operation within the bank was 15%, and commenting on this figure he stated, "The high level of trust our clients have in our services, is only due to the effectiveness of our operations. The financial programs we adopt for our current accounts make us able at JCBank to host client deposits at minimal costs, and this in turn explains the increase in the number of depositors choosing JCBank as the venue for their deposits".
The bank's annual report also indicated an increase of 121% in the net profits earned through the bank's credit portfolio whereby it reached JD 197.7 million by December 31st 2005. JCBank also increased its capital by JD10 million to reach a total of JD50 million so as to accommodate for the notable increase in its volume of operations.
Mr. Sayegh ended his talks by thanking investors, board members, and the JCBank team, for their support, "Without your efforts and your dedication we wouldn’t be where we are today" he added.
