Housing Bank Group reports JD140.8 million net profit for 2023, recommends cash dividend of 25% of share nominal value

AMMAN – The Housing Bank held its 51stGeneral Assembly Meeting on April 18th, 2024. During its annual meeting, the General Assembly approved the 2023 financial statements, the distribution of 25% cash dividends of the share nominal value of the year 2023 to the shareholders, the Board of Directors annual report for the year 2023, the Business Plan for 2024, and the 2023 Bank’s auditor’s report.

During the meeting, the General Assembly elected PricewaterhouseCoopers Jordan (PwC) to audit the Bank’s accounts for the year 2024, according to a statement to The Jordan Times. 

The meeting was chaired by the Chairman of the Board of Directors, Abdelelah Khatib with the presence of the shareholders holding 94.770% shares of the Bank’s capital. The meeting, which was held online, was also attended by the General Controller of the Companies Control Department, as well as representatives from the Central Bank of Jordan, the Palestine Monetary Authority, and the 2023 auditing company Deloitte, and the selected auditing company for the year 2024 PWC.

Khatib stated that the year 2023 was of a particular significance as it marked the 50thanniversary of the Housing Bank for Trade and Finance Group. "Since its foundation in 1973, the Group has built a proven track record of impressive successes and milestones that formed the basis of a new era of achievements where the Bank taps into new activities and growthaspects."

The year 2023 was another milestone that was added to this journey, and the Group maintained this growing momentum thanks to the resilient, comprehensive, and up-to-date strategic approach that it adopted leading to an unprecedented growth in revenues, which is considered the highest since the Bank’s establishment, the statement said. 

Khatib added that the Bank prioritises the environmental, social, and governance practices and commits to them in alignment with the best practices and international standards.

Commenting on the financial statements and performance indicators of the Bank for the fiscal year which ended on December 31st, 2023, Khatib valued the Bank’s "extraordinary" results despite the challenges and the regional turmoil resulting from the Israeli War on the Gaza Strip that negatively impacted the economy in Jordan and the region.

Such impacts are still present in vital sectors such as tourism, and transportation. The Bank’s operations were no exception especially the branches that are spanned over Palestine and the Gaza Strip, however, the Bank’s prudent approach toward risk management successfully maintained the Bank’s financial position. This was achieved thanks to the preventive and precautionary actions the Bank opted for through booking extra allocations of expected credit losses in 2023 amounted to more than JOD 35 million, according to the statement. 

Khatib said that the bank's net profits grew by 6.3% compared to the year 2022, to reach JD 140.8 million. The total income increased by 15.9 per cent reaching JD 438 million, compared to JD 378 million achieved during 2022, while the operating profits recorded a strong increase of 18.9 per cent to reach JOD 253.1 million.

He added net credit facilities increased by 4.8 per cent to reach JOD 4.5 billion, and customer deposits increased by 6.2 per cent reaching JOD 5.7 billion. The Bank continued its sustainable growth in the return on assets and the return on shareholder’s equity that reached 1.64 per cent and 10.9 per cent consecutively. The Bank maintained a strong capital base, where the total shareholder’s equity amounted to JD 1.3 billion, while the capital adequacy ratio reached 18.8%, well above the minimum requirements of the Central Bank of Jordan and the Basel Committee.

Khatib highlighted the milestones that characterised the year 2023 including forging an agreement with the European Bank for Reconstruction and Development (EBRD), in collaboration with the European Union, and the Green Climate Fund. The agreement aimed to provide the Bank with the necessary technical support when it comes to risk management and the environmental, social, and governance practices for the Housing Bank to offer an example to follow in this arena.

According to Khatib, the Bank has a comprehensive corporate social responsibility strategy that includes various pillars to serve the community. In 2023, the bank’s social priorities comprise vital sectors namely education, health, environment, sports, and entrepreneurship targeting women, youth, and persons with disabilities. In addition to the social events and initiatives that the Bank organized and launched, it offered a financial support to multiple organizations and initiatives on the national level.

Khatib went on to emphasize the Bank’s anticipatory approach while developing the business plan and budget for the year 2024. It considered the potential outcomes of the current critical and challenging economic situation that businesses witness resulting from the geopolitics developments, the high levels of inflation, and the risks associated with the high interest rates. The Bank adopted such an approach to maintain its advanced positioning in the banking sector, sustainable revenue growth, and market share.