Capital Bank of Jordan : Group Achieves JOD 50 Million in Net Profits in the First Half of This Year

Capital Bank Group announced its financial results for the first half of the year 2023, achieving strong financial performance across all operational areas of the group.

According to the financial data, the net profits of the group from its regular operations at the end of the first six months of 2023 reached JOD 50 million, with a growth rate of 20% compared to the same period of the previous year. The group also recorded a significant growth in total income, which increased by 63% to reach JOD 150 million in the first half of the current year, compared to JOD 92 million during the same period of the previous year.

The Chairman of the Board of Directors of Capital Bank Group, Bassem Khalil Al-Salem, commented on these results, saying, "We are proud of the strong financial results achieved by Capital Bank Group in the first six months of the year 2023. These results reflect our commitment to achieving sustainable growth and providing added value to our customers and shareholders. They also highlight our ability to implement our ambitious and long-term growth strategy, which revolves around achieving accomplishments and building on them while continuing our hedging policy, which positively affected the return on equity, reaching 17%, one of the highest rates in the banking sector."

Al-Salem pointed out that the financial results achieved by the group are the result of the integration policy between the bank and its subsidiaries, all of which operate in the largest and most important Arab markets, namely Saudi Arabia, Iraq, and the United Arab Emirates. He explained that the National Bank of Iraq, thanks to its strong and extended relationships with its clients, along with its presence in the Kingdom of Saudi Arabia, now tops the list of private banks in the Iraqi market.

For his part, the Acting CEO of Capital Bank Group, Samer Ibrahim Al-Aloul, stated that the strong financial results achieved by the group in the first half of the year 2023 reflect the strength and resilience of the operational business, represented by an 85% growth in net operating income compared to the same period of the previous year, reaching JOD 92 million while maintaining strong financial solvency ratios. The group continued its hedging policy, setting aside provisions amounting to JOD 25 million in the first half of 2023 to face any potential credit risks, ensuring a higher quality of assets with a coverage ratio exceeding 90%.

Al-Aloul also highlighted the 8% growth in the group's total assets until the end of June last year, reaching JOD 7.5 billion compared to JOD 7 billion the previous year, supported by a 12% increase in the volume of deposits, reaching JOD 5.5 billion compared to JOD 4.9 billion at the end of 2022.

He further pointed out that the total assets managed by Capital Investments, the investment arm of the group, reached 700 million dollars at the end of June last year.

Al-Aloul explained that the leasing business, which grew by 60%, contributed to diversifying the operations of Capital Bank Group and its revenues in Jordan and Iraq, providing new value-added services to its customers.

In turn, Ayman Omran Abu Dhaim, CEO of the National Bank of Iraq, stated that the bank achieved significant growth in all aspects of its business during the first six months of the current year, achieving a net profit of JOD 24 million in the first half of 2023. The total assets of the bank reached JOD 1.9 billion, and the total deposits reached JOD 1.5 billion. The credit facilities portfolio grew by about JOD 183 million, with a 60% growth in the individual sector. This was supported by an increase in the bank's customer base, reaching 149,000 customers by the end of June last year. These figures reflect the increasing trust of customers in the bank, its good reputation, and its ability to meet the growing requirements of all customers, whether individuals or institutions.

Abu Dhaim further explained that the National Bank of Iraq has become the preferred choice for customers requiring bank transfers, guarantees, and documentary credits, which grew by 30% during the first six months compared to the same period of the previous year. He pointed out that the bank continued to improve its infrastructure and expand its presence in the Iraqi provinces, with the opening of two new branches, bringing the total number of branches in Iraq to 26, in addition to its branch in Riyadh, which officially started operations last September and witnessed a strong launch in the Saudi market, attracting major Saudi companies with business dealings with Iraq.