Al-Salem: Capital Bank continues its journey of excellence, registering JOD 106.6 million in net profits at the end of 2023 and recording significant growth in assets and deposits.

During its regular annual meeting held on Wednesday, March 27, the General Assembly of Capital Bank endorsed the Board of Directors' proposal to distribute cash dividends to its shareholders, equivalent to 15% of the bank's capital. Additionally, the assembly ratified the Board of Directors' annual report, the financial statements of the group for 2023, and its strategic outlook.

The meeting, conducted virtually, was presided over by Bassem Khalil Al-Salem, the Chairman of Capital Bank Group, in the presence of several board members, the Acting CEO of the Group, Samer Al-Aloul and the Companies General Controller, Dr. Wael Armouti. The meeting was also attended by a collective of shareholders representing 86.34% of subscribed and paid-up capital.

Al-Salem opened the meeting by praising the soundness of the monetary and fiscal policies implemented in the Kingdom, which effectively softened the impact of external shocks on our national economy, under the wise guidance of His Majesty King Abdullah II.

He commended Jordan for maintaining unparalleled financial and monetary stability, as well as the lowest risk levels (or benchmark spreads) among oil-importing countries in the region and globally within the same credit rating category. In 2023, the national economy grew by 2.6%, an increase from 2.4% in 2022, alongside an improvement in the unemployment rate to approximately 22.3% during the third quarter. The trade balance deficit also saw a 10% reduction over the year, amidst a consensus by international agencies to affirm the national economy's credit rating with a positive and stable outlook for the future.

With regards to Capital Bank, Al-Salem stated that " last year was extraordinary. In 2023, we continued our path of excellence, achieving additional successes and milestones that led to exceptionally positive results. We realized significant growth across various areas, including assets, profits, deposit volumes, and other key financial indicators."

"These positive outcomes allowed the bank's management to take financial provisions beyond the levels of previous years, thereby reinforcing our solid banking foundation. Importantly, these provisions, which were in line with profit growth, did not significantly impact the bank's financial statements, given that the return on assets reached 1.5%. This figure underscores the bank's robustness, the resilience of its banking foundation, and its strong market position," he added.

On the subsidiaries of Capital Bank Group, Al-Salem detailed that the National Bank of Iraq (NBI) experienced significant growth in both individual and corporate client deposits and a notable increase in letters of credit volumes. This growth was supported by an expanded network of over 30 correspondent banks worldwide. The bank also saw an increase in its credit facilities and a 65% growth in total assets. Al-Salem emphasized the bank's expanding customer base, which is served with the highest level of efficiency, with plans for further expansion within the Iraqi market, including through the establishment of additional branches. He also noted the bank's growing appeal to the government sector, particularly among salaried employees, a customer base that is expected to continue its upward trend in 2024.

Additionally, Al-Salem highlighted the outstanding performance of NBI in Saudi Arabia, which has, since its inception at the start of 2023, enhanced trade exchanges between Iraq and the kingdom of Saudi Arabia. He concluded by noting that Capital Investments, the investment arm of the group in Amman and Dubai, achieved unprecedented profits, asset growth, and a noticeable increase in its transaction volume on the Amman Stock Exchange.

Meanwhile, Acting CEO of Capital Bank Group, Samer Al-Aloul, explained that "thanks to its strategic vision and comprehensive outlook towards the future, the group managed to secure robust financial results by the end of 2023, evidenced by a 17% increase in net profits. This performance underscores the group's significant financial flexibility and its diversified business approach."

Al-Aloul presented several financial milestones accomplished by the Capital Bank Group by the end of the previous year. He highlighted that the group's net revenue surged by 64.7%, reaching JOD 346.9 million by the end of 2023, up from JOD 210.6 million at the close of 2022. He noted that total customer deposits experienced a 12.2% increase, reaching JOD 5.5 billion, compared to JOD 4.9 billion at the end of 2022. Additionally, net credit facilities saw a 5% growth by the end of 2023, amounting to JOD 3.4 billion, up from JOD 3.2 billion at 2022's end. This underscores the group's adherence to its precautionary policy, exemplified by augmenting provisions for expected credit losses to JOD 73 million by 2023's end, a significant increase from JOD 28 million at 2022's end. This approach aligns with the group's conservative credit policy, serving as a safeguard against economic uncertainties and fluctuations, and is part of its strategy to foster sustainable growth.

Furthermore, Al-Aloul highlighted that the net equity of the group's shareholders experienced growth by 2023's end, reaching JOD 659 million, compared to JOD 617 million in 2022. This increase had a positive impact on the regulatory capital adequacy ratio, surpassing 15% and exceeding the threshold set by regulatory authorities.

In relation to the performance of the subsidiaries of Capital Bank Group, NBI, currently leading the banking sector in total assets that amounted to JOD 2.2 billion, exhibited significant growth. The bank's deposits from individual and corporate clients surged by 90% to reach JOD 1.6 billion by the end of 2023. Additionally, the volume of letters of credit issued during the year escalated to $660 million, supported by the expansion of its correspondent banking network, which now includes over 30 banks globally.

Moreover, the introduction of innovative banking services in the Iraqi market positively influenced the credit facilities portfolio, witnessing a 38% growth to JOD 709 million, predominantly in the individual sector. Concurrently, total assets saw an approximately 65% increase, reaching JOD 2.2 billion. The bank's customer base also expanded, totalling about 210,000 customers by the year's end, serviced by over 1,000 employees across 27 branches and supported by 190 ATMs.

Regarding external expansion, the bank's branch in Riyadh, Saudi Arabia, commenced operations at the start of 2023. Throughout the year, it successfully captured a significant share of the trade exchange volume between Iraq and the Kingdom of Saudi Arabia.

Moreover, Capital Investments recorded net profits of approximately JOD 4.3 million by the end of 2023. The company's assets under management saw a substantial increase of 44.6%, reaching JOD 618 million. Additionally, the number of trading accounts within the company rose by 11.85%, with new accounts added, and its contribution to the Amman Stock Exchange's trading volume accounted for 5.28% of the overall trading activity.

In regards to digital transformation, Capital Bank has made significant strides through its various digital platforms, yielding innovative services and unique offerings all aligned with the best global banking practices. These initiatives cater to both individual and corporate sectors and serve to enhance financial inclusion in the Kingdom.

As a result of this collaboration, the proportion of commercial transactions conducted online or via ATMs has significantly increased. Furthermore, the penetration rate of the Capital Bank mobile application has surpassed 80%, particularly after transitioning the registration process online and eliminating the need for in-person visits to any of the bank's branches nationwide.

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Capital Bank of Jordan PSC published this content on 04 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 April 2024 07:21:04 UTC.