Safwa Islamic Bank : Investor Report 2023 3rd Quarter

Safwa Islamic Bank

Investor Report Q3.2023

Contents

02 | Safwa Bank, Financials

At a glance, Highlights, Funding, Uses of Fund, NPM	Pages:
Analyses, Profitability, Assets Quality, Liquidity, Efficiency	12 to 23

01 | Stronger Safwa

Milestones, Why to invest in Safwa, Our Values, Outlook, Success Journey, Our Products and Services, Safwa Share

Pages: 2 to 11

03 | Jordanian Banking Sector

CBJ Role, Basic info and indicators

04 | Jordan

Pages: 24 to 27

At a glance, Jordanian Economic, Why to invest in Jordan,

Pages: 28 to 31

Safwa Bank

Stronger Safwa

Safwa .. Investment Highlights

Track record

Track record of favorable growth

Innovation

Leveraging technology to drive growth,

competitive differentiation and

increased efficiency

Management/Shareholder

alignment

Stable returns, reduced earning

volatility, and stronger shareholder

value creation

3

Return on Capital

Strong balance sheet/optimization

Positioning

Well positioned in the market with

flexibility to respond to emerging trends

Safwa Bank .. Our Products and Services

Basic Bank

Current Accounts

Saving Accounts

Account

Kanzi (kids)

Regular

Salary

Regular

Harir (Women)

Investment Deposit

Investment Certificate

Hajj Sukuk

Deposit Box

Pre Paid Cards Murabaha Credit Card ATM CardsDebit Cards

Safwa Mobile Safwa Online Safwa SMS Call Center

4

Real Estate Ijarah		Personal Murababaha		Musawamah
Yusur For Refinancing		Auto Murababaha

Facilities		Cash Deposit Machines		Cash Management System
Corporate Savings Account				Corporate Current Account

Financing Goods		Real Estate Financing		Start-up Financing
Financing for Renewable Energy		Indirect Financing

Safe Custody

Financial Broker/ Dealer (ASE) Misc E-tradeMisc Mobile

Management and issuance of Sukuk

Customer Centric

Solid Principles, Innovative Solutions

Digitization	Simple Processes

Safwa Bank .. Strategy Focus, Digitization	5

E Channels						" Anytime, Anywhere "
	Safwa Mobile	Safwa Online	Safwa Call	Cards
	ATM

E Services

Contactless	Transfers	E-Pay Bills	Update Personal	Prepaid Cards
Card	Data

Cash Deposit	Cards	Accounts	New User	Points &
Management	Management	Registration	Loyalty

QR Payment	Biometric	"CliQ"	Customer
	Authentication	Instant transfers	onboarding

Safwa .. Efficient Network

Irbid

								42
													4				7		1
										Branches
																1
		74						Balqa
										ATMs
																1					2
			7						Ma'daba
										Safwa Gold
																1				2
		7
										SME
										Centers
																Amman
										Brokerage	29				54	6
										Company

6

Jerash

1 1

Mafraq

1 1

Zarqa

		3				4

1

Karak

1 2

Aqaba

							1
	1

1 4

Safwa Share

Basic Information and Ratios

7

Share Price Since 2015

	Symbol:	SIBK
	Exchange Market:	Amman Stock Exchange
		(www.ase.com.jo)
	Free Float:	14.3 %
	Closing Price:	JOD 1.90
	Market Value :	JOD mn

Share Key Ratios

 Average Price (52 weeks):	JOD 1.90
	Return (last 52 weeks)	1.1%
	PE Ratio	11.6
	PB Ratio	1.03
	Volatility	0.05 JOD
	Payout Ratio	0%

Shareholders Composition

Al Etihad Investment

Company

62.4%

100,000,000

Outstanding Shares	9.4%

5.6%

4.9%

14.4% 3.3%

2.10

1.60

1.10

0.60

0.10

-0.40

Social Security

Government Investments

Managemet Company

Orphans Fund

Development Cooperation

Others

Al Etihad Bank

Safwa Sustainability - ESG

Green Finance

• Retail green financing during 2023 reached JOD 21 million.
• Signed a financing agreement to establish a solar power plant with a total value of JOD70.5 million, to provide the industrial sector with a capacity of 318 gigawatt-hours/year of clean energy. It is considered the largest solar energy project with an on-grid system in the Middle East and North Africa region, and it is the first of its kind in Jordan and the region in terms of its shareholders, which makes it a role model for more projects in the future.

Gender Diversity

• Board of Directors - Increased female representation to 18% (2022 9%)
• Management - Female representation 29%

Resource Efficiency & Waste Management

• Established waste reduction and recycling programs across our operations, focusing on paper, plastics, and electronic waste.
• Continuous monitoring and optimizing of our resource consumption, investing in energy-efficient equipment and technology, and implementing resource-saving measures.

8

Products Energy Requirements Reduction

• Expanded our digital banking services to reduce the need for in-person branch visits and consequently lowers the energy consumption associated with physical banking operations.
• Encourage customers to opt for paperless transactions, to reduce the energy consumption associated with printing and mailing physical documents.

Sustainability Reporting

• Safwa bank issued it first Sustainability Report for the year 2022

Social Responsibility

• Renewed cooperation agreement with King Hussein Cancer Center
• Singed agreement with Injaz for Youth Education and Empowerment
• Donated to Tikyet Um Ali to support those in need
• Future Stars program to train university students
• Donated to Crown Prince Foundation to support schools in need
• Cooperated with King Hussein Cancer Foundation in their media campaign to fight cancer

Future Strategy	9

Our future strategy revolves around the following main pillars.

Our future strategy revolves around the following main pillars.

Unbeatable Customer Service

SIB strives to provide high quality services

and innovative products

Digital Evolution

Applying digital technologies to renew the way business is done and create and deliver new value

The Efficiency and Effectiveness

Implementation of business through a

cohesive team that works in one spirit with

the best solutions, at the lowest costs

Accelerated Growth in All Sectors

Maintaining the pace of the ascending line aiming at a rounded growth in all sectors

Risk Management

Ensuring the application of the principles of the risk management plan, assessing risks and developing strategies to manage them