Housing Bank Group’s net profit for 2022 increased by 20.2% over previous year, recommending cash dividend of 25% of share nominal value

AMMAN — The Housing Bank for Trade and Finance (HBTF) announced the results of its consolidated financial statements for the fiscal year that ended on December 31, 2022. 

The results revealed that the group’s net profits, after provisions and taxes, amounted to JD132.4 million for 2022, compared with JD110.1 million achieved in 2021, reflecting a growth of 20.2 per cent, according to a statement from the bank.

Speaking about the Group’s 2022 financial statements, Abdel Elah Al Khatib, chairman of the board of directors, expressed his deep satisfaction with the positive results, indicating that the bank’s solid performance was the result of its comprehensive and flexible strategic approach, which focuses on sustainability and a continuous emphasis on digital transformation.

Khatib underscored that HBTF’s latest achievements reflect the bank’s diversified capabilities and strengths, which include its sustainable investment resources, efficient operational processes, effective recruitment, wide-reaching operational resources and prudent, high-quality credit portfolios, as well as the bank’s intelligent, conservative approach to risk management. 

The chairman also highlighted HBTF’s exceptional customer service, and its ability to consistently meet their needs and maximise the returns on equity, which rose from 9.3 per cent in 2021 to 10.7 per cent at the end of 2022.

Khatib added that the group has maintained a strong, solid financial position, successfully overcoming and fortifying itself against all domestic and international challenges, including the ongoing repercussions of the global events of the last several years, which continue to cast a shadow over the banking sector and national and global economies. 

Throughout these challenging times, the bank has continued to build upon its achievements, thanks to a solid foundation of good governance and astute management, allowing the bank’s performance to continue along its upward trajectory, the statement said.

In light of the strong results achieved for the year 2022, the Board of Directors in its meeting held on 26/1/2023 approved the financial results of the year 2022, and recommended to the general assembly a cash dividend of 25 per cent of the share nominal value for the year 2022. 

The financial results for the year 2022 and the dividend distribution proposal are subject to the approval of the Central Bank of Jordan.

Ammar Al Safadi, the Chief Executive Officer of HBTF Group, said that the financial growth and achievements recorded by the Group in 2022 reflect the bank’s exceptional efficiency in managing assets and liabilities, its adept ability to control and rationalise costs, its success at diversifying and increasing its income sources across all operational sectors.

Safadi stated that the total income from core banking operations increased by 6.5 per cent, reaching JD378 million, compared with the JD355 million reported in 2021. 

Meanwhile, operating profits rose by 8.3 per cent over the previous year, reaching a total of JD212.9 million. These results were achieved as a result of the group's continuous efforts to increase total income, diversify income sources, and enhance operational efficiency.

Safadi added that the group was able to increase the coverage ratio of non-performing loans to exceed 100 per cent, in addition to enhancing the coverage ratio of the performing loans classified under Stage 2, of which the group increased the coverage ratio for provisions of Stage 2 to exceed 40 per cent of total Stage 2 loans exposure at the end of 2022. This important ratio is considered one of the best ratios across the regional banks level, and will enhance the strength of the bank’s financial position, the statement said.

Safadi also indicated that the group was able to increase its net credit facilities at the end of 2022 by 8.2 per cent to reach JD4.3 billion, as well as increasing customer deposits by 2.0 per cent to reach JD5.3 billion. In addition, the bank maintained its strong capital base, as the total equity amounted to JD1.3 billion, while the capital adequacy ratio reached 18.7 per cent at the end of 2022, which is well above the minimum regulatory requirements of the Central Bank of Jordan and the Basel Committee.

The group continued to implement several initiatives and strategic projects, including those that revolve around the bank’s Digital Transformation Strategy, which paved for more varied, distinctive and comprehensive products and services; ultimately leading towards meeting the requests of customers across several sectors, via various channels, including ones that are digitally advanced, further enhancing the care, reward, trust and loyalty of these customers, enabling the bank to increase the customer base and keeping them loyal.

In parallel with these efforts and results, the group did not stop enhancing the effects of its business and community services, through its corporate social responsibility initiatives and programmes that covered various development angles.

Safadi concluded by affirming his confidence in the bank's ability to continue achieving further growth and improvements in the future and to provide the latest electronic and digital applications which are on par with the best global banking practices. 

The bank will also continue to keep up with the latest developments in the banking industry and see what technology has to offer in this field. In a manner befitting the bank's advanced position in the Jordanian banking sector, and its legacy that extends over five decades, the group is moving forward towards new breakthroughs in this industry as well as its non-banking activities, concluded the statement.