Export and Finance Bank releases mid-year financials

The Bank recorded a net income after tax and provisions of JD4.1 million compared to JD3.1 million during the first six months of 2003; boosting its net income by 32%.

The bank's total assets have increased by 13% from 2003 yearend figures reaching JD349 million, while shareholder's equity reached around JD50 million. The bank's credit facilities amounted to JD200 million by June 30, 2004 on the other hand customer deposits reached JD236 million. Capital adequacy reached 17% compared to a 12% required by the Central bank of Jordan.

The bank was able to achieve notable growth in various income sources, reflecting the bank's ability to diversify risk. The bank is currently in the process of carrying out a developing plan, which will strengthen its leading position in the retail and corporate banking services as well as various investment services.

In addition, provisions covering non-performing loans declined during the first half of 2004 to reach JD500 thousand, compared to JD2.5 million during the same period in 2003. The impressive decline was a result of the bank's conservative policy towards the treatment of non-performing loans, growing customer base, along with providing personal and corporate loans to prime customers with low credit risks. The bank has started to reap the benefits of this policy during this year. Furthermore, provisions covering general risks of good credit facilities were enhanced during 2004, around JD1.2 million were deducted as a general provision for good debts.

In line with the bank's strategy of diversifying its income earning sources and managing the risks associated with lending as well as providing individual clients with various retail banking services, the bank was also very successful in the provision of housing loan facilities program which was launched last year. The bank has also launched the car loan program as well as the personal loan program with the best terms and conditions available in the local market; both programs were successful. In order to accommodate for the increasing volume of business as well as the new working conditions the bank is in the process of establishing a new branch opposite to its head office, it is set to be inaugurated during September of this year.

The bank continued providing its client base including individuals, corporate clients and other financial institutions inside and outside of Jordan with various banking services relating to the Iraqi market including money transfers, Letters of Credit and Letters of Guarantee. It is expected that the strategic partnership with the National Bank of Iraq will come into effect during the second half of this year.

During the first half of 2004 the bank capitalized JD7 million of its reserves and retained earnings and then distributed it as stock dividends to shareholders, the bank's capital increased by 20.3% reaching JD41.5 million. The bank's return on average equity and return on average assets is expected to reach 19% and 2.8% respectively by yearend reflecting the bank's continued growth in profits since its establishment.