Fitch affirms Jordan's Housing Bank for Trade and Finance at Support '3'

The rating reflects the moderate probability of support being available from the Jordanian authorities in the event of need, given HBTF's systemic importance in Jordan.

HBTF has a good domestic franchise that provides a stable funding base. Asset quality has been improving and compares well with its peer group, with non-performing loans declining to 2.98% of gross loans at end-2006. Following a significant rights issue during 2006 (JOD400m), HBTF reported a strong total capital adequacy ratio (per local guidelines) of 32% at end-2006, though this will decline as the bank grows its balance sheet.

HBTF's earnings rose significantly in 2006, helped by strong economic growth in Jordan. Loan growth, particularly in the retail sector, has boosted net interest revenue, while higher fees and a stable cost base also contributed to the better result.

HBTF is the second-largest bank in Jordan, with market shares of 14% of total loans and 16% of total deposits at end-2006. It has a leading position in the domestic retail market, by means of the largest branch network in the kingdom. It has 97 branches in Jordan, eight in the Palestinian Territories and one in Bahrain.