Housing Bank total income increased by 2.3% to reach JD179.9m in first half

AMMAN — The Housing Bank for Trade and Finance, the most widespread bank in the Kingdom, reported a total income of JD179.9 million from the beginning of the year to June 30, 2019 — a 2.3 per cent increase over the JD175.9 million reported last year during the same period. 

Net interest and commission income also grew by 5.7 per cent, reaching JD161.5 million during the first half of 2019.

In strict compliance with International Financial Reporting Standard 9 (IFRS9) and Central Bank of Jordan regulations, the bank booked provisions of JD40.6 million for the first six months of 2019 compared to only JD15.7 million booked during last year’s first half, according to the bank’s website. 

The result was a net profit (after tax) of JD38.8 million for the first six months of 2019 compared to JD55.3 million achieved during the same period last year — an achievement that will strengthen the bank's financial position and reinforce its creditworthiness.

The bank continued to achieve strong growth rates during the first half of 2019, with net interest income and commission income increasing by 5.7 per cent to a total of JD161.5 million as compared to last year’s JD152.8 million. Furthermore, net direct credit facilities grew by 2.5 per cent, reaching JD4.4 billion by the end of June.

According to chairman of the bank’s board of directors Abdel Elah Al Khatib, these results are a testament to the bank's well-balanced performance and ability to sustain a solid financial position despite economic challenges. 

Khatib added that the bank is committed to continuing its positive contribution to the national economy as well as fulfilling the vision of its shareholders and clients by enlarging its operating profits. 

The chairman also expressed his confidence in the bank's ability to develop and improve its performance, thereby strengthening its position in both the local and regional banking industry.

According to Chief Executive Officer Ammar Al Safadi, the bank’s increase in income is also due to the strong improvement of its main sectors, which enabled it to achieve a strong operating profit and maintain a liquidity ratio of 122 per cent on the group level.

Safadi also added that the bank was able to manage its assets and liabilities as well as build close relationships with bank clients to better understand and satisfy their needs.  

These improvements resulted in a net growth of direct credit facilities by 2.5 per cent to a total of JD4.4 billion as of June 2019 as well as a growth of total assets by 1.5 per cent to a total of JD8.4 billion.