Capital Bank of Jordan : Group Ends the First Quarter of 2024 with Strong Financial Performance, 88% Growth in Profits

Al-Salem: Group net profits after taxes reach JOD 49 million

Capital Bank Group has announced its financial results for the first quarter of 2024, showcasing a robust start to the year with net profits after taxes surging by 88% to reach JOD 49 million, up from JOD 26 million in the prior period.

Bassem Khalil Al-Salem, Chairman of Capital Bank Group, commented on the results, stating that "Despite the surrounding economic conditions, the group has continued on its successful trajectory during the first quarter, achieving substantial growth that has reinforced its position as a leading banking and financial institution and a key supporter of Jordan's economic aspirations and goals."

Al-Salem reported that the group's total assets had grown by 3.5% by the end of the first quarter, reaching JOD 7.9 billion, up from JOD 7.6 billion at the end of the previous year. This increase is a positive indicator of the group's dynamics and financial strength.

He further noted that net credit facilities had risen by 2.2% by the end of the first quarter, amounting to JOD 3.5 billion, compared to JOD 3.4 billion at the end of the previous year. Additionally, total customer deposits stood at JOD 5.4 billion.

"The total equity of the group's shareholders reached approximately JOD 651 million by the end of the first quarter, with the return on shareholders' equity surpassing the 20%," added Al-Salem.

"The group's strong financial results reflect our unwavering commitment to the highest standards of performance, delivering high-quality financial services, and meeting our customers' needs efficiently and effectively," commented Samer Al-Aloul, Acting CEO of Capital Bank Group. "These results also underline the strength and stability of our strategy, boosting confidence in our ongoing leadership in the local and regional banking sectors."

Al-Aloul highlighted that the group's total revenue had risen by 59% by the end of the first quarter to JOD 110 million, up from JOD 69 million during the prior period. "The group continues to take credit provisions on its books adhering to its prudent credit policy and hedging against economic fluctuations, in alignment with our plans for sustainable growth."

Al-Aloul further noted that net interest income for the first quarter increased by an estimated 18%, reaching JOD 53 million, compared to JOD 45 million at the end of the prior period.

He attributed these positive results to the group's focus on diversifying income sources, banking operation growth, operational efficiency enhancement, and providing advanced financial solutions that cater to a diverse customer base. This approach has been complemented by efforts to enhance service quality and offer a distinguished customer experience, alongside the continuous development of employee skills and the creation of a stimulating work environment.

Meanwhile, Ayman Abu Dhaim, CEO of the National Bank of Iraq, reported significant financial achievements for the bank at the end of the first quarter.

"Total direct credit facilities reached JOD 748 million by the end of March this year, with total customer deposits hitting JOD 1.56 billion at the end of the first quarter," said Abu Dhaim, noting that the bank's assets had grown by 12%, reaching about JOD 2.42 billion at the end of the first quarter, compared to JOD 2.16 billion at the end of last year.

"The bank has continued to provide high-quality banking services to individual and corporate clients throughout the first quarter, solidifying its position in the Iraqi banking market. Our customer base has also expanded to 210,000 clients, bolstering the confidence of international financial institutions in our bank." noted Abu Dhaim.

"The bank was recently granted a $50 million loan from the US International Development Finance Corporation (DFC) to expand financing access for small business entrepreneurs, with a focus on first-time borrowers and women-owned projects, boosting the number of small enterprises in Iraq," he added, further noting that the bank plans to open 7 new branches this year, raising the total to 38 branches by the end of 2024.