Export & Finance Bank releases third quarter financial results

The Bank recorded a net income after tax and provisions of JD6.3 million compared to JD5.4 million during the first nine months of 2003.

The Bank's total assets have increased by 27% from 2003 yearend figures reaching JD391 million. The Bank's credit facilities have reached JD221.6 million by September 30, 2004 on the other hand customer deposits reached JD274.9 million.

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

Net interest income during the first nine months of this year has reached JD7.4 million compared to JD6.5 million during the same period last year. In addition, revenue from trade finance activities has amounted to JD3.5 million compared to JD2.1 million last year. On the other hand the Bank's portfolio in the Amman Stock Exchange has reached 32.4% compared to an increase in the ASE index of 17.35% during the same period.

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 has established a new branch opposite to its head office; it is set to be inaugurated during October 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 before the end 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. It is also expected that the Bank will maintain its capital consolidation policy end of this year.