Capital Intelligence assigns rating to Export & Finance Bank

The Agency also assigned short and long-term foreign currency ratings of BB and B respectively to the Bank.

The CI's report stated that "Export & Finance Bank (EFB), which was established in 1995 as a full service commercial bank to provide a wide array of banking and investment products and services to corporate and individual customers has built a successful business franchise during its comparatively short history".

The Bank's shareholders comprise a number of prominent businessmen and companies from Jordan and Saudi Arabia. According to the Agency's report, "the Bank's principal shareholders are of very good reputation and resources, which provides the Bank with clear support".

EFB operates a small, albeit expanding, branch network comprising five outlets, one in Amman and four in the Qualifying Industrial Zones (QIZs) of the country. More recently, the Bank obtained the CBJ's approval to open four additional branches in the Kingdom. The new branches are expected to start operations during 2005, thereby bringing the total number of operating branches to nine.

In 2004, EFB signed a strategic agreement with National Bank of Iraq (NBI) in Baghdad (total assets USD10mn) allowing it to acquire 49% of paid up capital and to exercise management control. NBI is the leading provider of money transfer services in Iraq, in addition to various other banking services.

CI's report revealed that "EFB's management is well regarded in the local market and clear business strategies are in place aimed at further consolidating the business franchise. The Bank's focus on retail banking continues to grow as part of the Bank's strategy to diversify risk and earnings. Asset quality is satisfactory by the standards of Jordanian banking system, with a lower than sector average problem loan ratio and adequate provisioning". The transfer of all earnings to capital has reinforced the Bank's capital base over the past years, providing the resources to finance its current expansion drive. As per the CI's report, "EFB enjoys high profitability ratios where its return on average assets (ROaA) ratio and return on average equity (RoaE) ratio are considered among the best in Jordan".