Export & Finance Bank records a net income after tax and provisions of JD 12 million in 2004

The Bank recorded a net income after tax and provisions of JD12 million compared to JD8 million during 2003; boosting its net income by 50%. The return on average assets reached 3.3% during 2004 while the return on average equity reached 23%, which are among the highest ratios in the banking sector.

The Financial statements reveal that the Bank's assets grew by 35% reaching approximately JD416 million, while net credit facilities increased by 35.6% reaching JD237.8 million. Total customer deposits and margins increased by 29% to reach JD297 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 2004 reached JD11 million compared to JD8.8 million during the same period last year. In addition, revenue from trade finance activities has amounted to JD4.5 million compared to JD3 million last year. On the other hand the return on the Bank's portfolio in the Amman Stock Exchange has reached 77% compared to an increase in the ASE index of 62% during the same period.

This year's outstanding performance was further supported by our first financial strength rating of (BBB-) by Capital Intelligence (CI), which placed us among the top tier Banks in Jordan. Non-performing loans ratio dropped to a record low reaching 5.1%, which is considered one of the best in the Banking sector.

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. The Bank also launched its comprehensive E-Banking services to clients during 2004. Furthermore, our branch network was also expanded during 2004 to better serve our clients. During the past year we opened a new branch in Shmeisani and part of our operations was moved there.

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. We crafted and executed a successful vision for the future when we signed a strategic partnership agreement with National Bank of Iraq (NBI), whereby Export & Finance Bank acquired 49% of NBI's paid up capital in addition to management control. Thus over the past year Export & Finance Bank has made available to NBI all the resources and technical support needed. We are currently training NBI's employees in different departments; this will enhance NBI's performance and allow us to tap into the vast pool of opportunities in Iraq.

Our strategy of retaining earnings has proved its success over the years. It has provided us with a considerable position of strength to grow domestically and regionally. Over the past five years Export & Finance Bank managed to more than double its paid up capital, making us one of the few Banks in Jordan that have met the Central Bank of Jordan's minimum capital requirement of JD40 million by the end of 2007. In the years ahead, we will continue raising our paid-up capital to solidify our capital base, accommodate our domestic and regional expansion plans, and in anticipation of Central Bank of Jordan's further increase of minimum capital requirements. The Bank's General Assembly of 31/1/2005 has endorsed the Board of Directors decision to increase the paid- up capital through the issue of JD 20 million shares in private subscription at par value of JD 1 per share. In addition, the Bank's Board of directors will propose to the General Assembly raising the Bank's paid-up capital by 25% through the issuance of bonus shares capitalizing JD 10.5 million of the Bank's reserves and retained earnings, bringing up our paid-up capital to JD 72 million.