An increase in Capital Bank's net profit to 30.3 million dinars in 2020, with a growth rate of 5%

by **claud39** Sat Jan 30, 2021 6:12 pm

An increase in Capital Bank's net profit to 30.3 million dinars in 2020, with a growth rate of 5%

Sunday January 31, 2021

An increase in Capital Bank's net profit to 30.3 million dinars in 2020, with a growth rate of 5% File

Amman

Capital Bank announced, in a press release issued yesterday, its preliminary financial results, represented by an increase in its net profits for the year 2020 after taxes from 28.8 million dinars in 2019 to 30.3 million dinars in 2020 with a growth rate of 5%, despite the increase in the amount of provisions that The bank monitored it in line with its precautionary policy, which amounted to 24.5 million dinars for the year 2020, compared to 7 million dinars that were allocated in the year 2019.

Capital Bank also announced an increase in the operating net profit by 40% compared to the year 2019. Accordingly, the Board of Directors decided The bank recommends a dividend of 12%, which is the maximum that the Central Bank of Jordan allowed for this year.

Despite the difficult economic conditions that Jordan went through during the past year, and their effects on most economic sectors, including the banking sector, Capital Bank was able to achieve an increase in the bank’s assets from 2.2 billion dinars in the year 2019 to reach 2.8 billion dinars in the year 2020. An increase of 26%, in addition to achieving growth in financing sources, especially customer deposits, which rose last year by about 368.2 million dinars, or by 28.2%.

The net credit facilities portfolio increased by 324 million dinars, or by 30%, and net interest income increased by 25.8%, and by 14.2 million dinars. As for equity, it grew by 2.4%, up from 348 million dinars in 2019, to 356 million dinars in The year 2020. Capital Bank stated that these preliminary results are subject to the provisions and approval of the Central Bank of Jordan.

Commenting on these results, Basem Khalil Al-Salem, Chairman of Capital Bank Group, expressed his pride and pride in the growth achieved by the Capital Bank Group in Jordan and Iraq, represented by Capital Bank, the National Bank of Iraq and Capital Investments - the investment arm of the group. Al-Salem indicated that the achievements on the ground are a translation of the group's vision and ambitious strategy of achieving growth through the application of the methodology of development and expansion in the markets in which it is located.

Regarding the acquisition of Bank Audi’s business and branches in Jordan and Iraq, Al-Salem said: “This agreement will fulfill the Capital Bank Group’s plans to strengthen its competitive position and expand its regional and local spread in Jordan and Iraq, as this step is considered the first acquisition in the Iraqi banking sector. And it supports the activities of the National Bank of Iraq in it, which enhances the strength of the Capital Bank’s financial group indicators, while continuing to provide innovative and highly efficient banking services to clients at the corporate and individual level.

Under the agreement, Capital Bank Group will acquire Bank Audi operations in Jordan, which includes 14 branches, and its branches in Iraq, which includes 5 branches, thus bringing the total number of Capital Bank branches in Jordan to 28, and the branches of the National Bank of Iraq to 18 branches. This acquisition will increase the shareholders' equity of the Capital Bank Group to nearly 400 million dinars and raise the value of the group's assets to reach 3.6 billion dinars.

The CEO of Capital Bank, Dawood Al Ghoul, explained that Capital Bank's financial results were achieved as a result of the business expansion policy adopted by Capital Bank last year, which contributed to the significant increase and growth of the group's financing sources.

As for the rest of the group's expansion plans, efforts have been made to upgrade Capital Investments in the DIFC in order to be able to provide asset management services to its client base in the United Arab Emirates and the Gulf. Capital Investments is also working to attract more investment portfolios by marketing its services and products in the Iraqi market and in cooperation with the National Bank of Iraq, by establishing a department specialized in wealth management under the umbrella of Capital Bank, which provides integrated services to major customers of the bank covering banking, investment and financial advice.

In continuation of the social responsibility approach that it adopted, Capital Bank contributed in providing support to a number of state institutions and civil initiatives to face the repercussions of the Corona pandemic, as it made financial donations worth 2.5 million dinars in the year 2020.

The bank also launched an incentive package for its customers from the corporate and individual sectors with the aim of reducing burdens Financial support for them and in support of the economic sectors, in addition to his participation in the National Loan Guarantee Program initiative launched by the Central Bank of Jordan, and his access to financing of 70 million euros from the European Investment Bank to be loaned by the bank to small and medium-sized local companies whose businesses were affected by the pandemic.

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