Cairo Amman Bank net profit in 2006 amounts to JD19.2 M

After deductions, the net profit amounted to JD 19.2 million compared to JD 31.5 million for the same period of the previous year.

CAB Chairman, Mr. Khaled Al Masri said that this year's profits are considered a significant achievement for the Bank taking into the consideration the conditions in Palestine, where CAB has a major presence. Due to the circumstances, salaries for public sector employees in Palestine were no longer being transferred as of 2006, therefore CAB allocated approximately JD 9.2 million to be transferred to their clients' credit facilities portfolio.

Al Masri pointed out that the Bank's operational dynamics continued its growth in 2006. The net profit rose to JD 42.9 million at a rate of 22.6%, compared to JD 35 million in 2005, while the commission revenues have increased by 4.1% to reach JD 9.9 million. Credit facilities portfolio achieved a 14.3% growth reaching JD 503.3 million.

Customers' deposits also continued to grow by 4.2% compared to 2005 reaching JD 889.4 million.

Based on these results, CAB's Board of Directors made a recommendation to the general assembly to increase the Bank's capital from JD 67.5 million to JD75 million by capitalizing on JD 7.5 million in rounded profits and distributing them as free shares to shareholders at a rate of 11.11%. The Board also recommended distributing a 10% monetary interest to shareholders, which represents JD 6.75 million.