Jordan Kuwait Bank announces its 2007 results

Total assets grew by 22.24% to $2.85bn, with an increase of $517.6m over 2006, credit facilities (net) amounted to $1.59bn at the end of 2007, a 17.55% growth over last year's figure. In the meantime, NPL ratio was further improved to a new record low of 0.2% down from 0.3% in 2006. The credit portfolio's diversified base, sound collaterals and clear objectives helped in securing consistent growth rates as will as recording the lowest NPL ratio at both local and international banking sectors. Customers' deposits and cash margins increased by 15.73% and reached $1.73bn as at December 31, 2007.

Total income for the year amounted to $136.5m, an increase of 21.4% over 2006; this is attributed to the growth in various bank activities including credit, treasury, trade finance and the private banking. Net interest and commission realized a 20.8% growth and reached $ 112.7m.

Income for the year (after tax) pertaining to bank shareholders amounted to $62.6m, a growth of 13.4% over 2006, Owners' equity-bank shareholders'- grew by 15.6% and reached $306m compared to $ 264.7m in 2006.

Financial indicators and efficiency ratios maintained their high levels among the best local and international standards. Return on equity recorded 30.2%, and the Return on average assets 3.47%. The ratio of general and administrative expenses to average assets recorded a clear improvement as it dropped to 1.1.47% from 1.53% in 2006. A similar improvement was witnessed by the ratio of general and administrative expenses to gross income as it declined to 16.42% from 18.66% in the past year.

Kabariti announced that in view of the 2007 financial results, the Board of Directors had decided to recommend to the Bank's General Assembly the disbursement of JD15m ($21.15m) of profit as cash dividends to the shareholders at the rate of JD0.200 ($0.28) per share, in addition to capitalizing the sum of JD25m ($35.3m) from the share premium reserve to be distributed to the shareholders as bonus shares at the rate of one share for every three shares held. The distribution of these shares will bring the bank's paid up capital to JD100m ($141m).