Safwa Islamic Bank : Investor Report 2024 1st Quarter

Safwa Islamic Bank

Investor Report

Q12024

Contents

01 | Stronger Safwa

About Safwa, Strategy, Reason to invest in Safwa, Our

Products and Services, Network, Safwa Share, ESG

02 | Safwa Bank, Financials

At a glance, Highlights, Funding, Uses of Fund, NPM	Pages:
Analyses, Assets Quality, Liquidity, Efficiency, Financials	10 to 23

03 | Jordanian Banking Sector

CBJ Role, Basic info and indicators, Banking

Sector

04 | Jordan

Pages: 2 to 9

Pages: 24 to 27

At a glance, Jordan Economy, Why to invest in Jordan,

Pages: 28 to 31

Safwa Bank

Stronger Safwa

About Safwa	3

1965

The bank founded under special law as a specialized bank "Industrial Development Bank (IDB)"

2017

DIB sold it's share to Al-Etihad Islamic for Investment Co. who became the new major shareholder

The new identity Safwa Islamic Bank launched to reflect the coming new vision of the bank

20XX

Sustainable growth

Higher market share

Maximizing shareholder return

#1 Community Bank in Jordan

IDB became an Islamic bank under the	New Management, New Ambitious
Goals, New Strategy that will be the
mane "Jordan Dubai Islamic Bank"
Address for the Coming Era

Fair and Responsible Banking

	2010		2018
Operating Group	Retail	Corporate	SME	Treasury & Investment

Our Vision	To become the leading community bank in Jordan by offering integrated and comprehensive services through
a "One-Group" that utilizes innovative methods and adheres to best practices

Our Value	Our Strategic Priorities
➢	Innovation	Bank Transformation:
➢ Knowledge	Strategies for Growth:
➢ Quality	Structural Reforms:

Change modes of operation and business execution

Strengthen profitability

Fit for purpose approach in proposing solutions to customers needs

Ensure business resilience

Investment in organic growth while controlling expenses

➢ Added Value

Efficiency & Effectiveness:

• Services up to the highest global standards

Risk Management:

Implementation of business through a cohesive team that works in one spirit with the best solutions, at the lowest costs

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

Safwa Strategy Focus

Instill owners mindset

We are ALL IN "One Safwa"

Culture

Constantly Innovate

Customer-centricity

					Expand Distribution channels
					Advance efficiency
					Customer-centricity
Retail					Improve CX and Engagement
				Adapt Digital transformation to
					meet customer preferences
					Innovative products & services
					ESG initiatives
					Enhancing Credit card portfolio

Corporate

Treasury

4

ESG & Contracting Finance

Land Development Finance

Bonded Finance

Transactional banking and Trade Finance

Enhance CX & Engagement

Seamless process, Increase Efficiency

Introduce new products

Sukuk Issuance

Wealth Management

Expand dealers base

Reason to invest in Safwa	5

Track record

Return on Capital

Positioning

Management/

Shareholder alignment

Innovation

Track record of favorable growth

Strong balance sheet optimization

Well positioned in the market with flexibility to respond to emerging trends

Stable returns, reduced earning volatility, and stronger shareholder value creation

Leveraging technology to drive growth, competitive differentiation and increased efficiency

Safwa Bank .. Our Products and Services	6

Retail

Corporate

Small

Business

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

Basic Bank

Current Accounts

Saving Accounts

Accounts

Account

Regular

Salary

Regular

Harir (Women)

Kanzi (kids)

Investment Deposit

Investment Certificate

Hajj Sukuk

Deposit Box

Cards

Pre Paid Cards

Murabaha Credit Card

ATM Cards

Debit Cards

E-
Safwa Mobile		Safwa Online		Safwa SMS		Call Center
Channels

Treasury

Safe Custody

Management and issuance of Sukuk

Brokerage

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

Safwa Bank .. Strategy Focus, Digitization	7

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

E Services

Contactless	Transfers	Apple Pay	Update Personal	Prepaid Cards
Card	Data

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

QR Payment	Biometric	"CliQ"	Customer	E-Pay Bills
	Authentication	Instant transfers	onboarding

Safwa .. Efficient Network

Irbid

								43
													4				5		1
										Branches
																1
		76						Balqa
										ATMs
																1					2
																Ma'daba
			7
										Safwa Gold
																1				2
		8
										SME
										Centers
																Amman
										Brokerage	30				58	6
										Company

8

Jerash

1 1

Mafraq

1 1

Zarqa

		3				4

1

Karak

1 2

Aqaba

							1
	1

1 5

Safwa Share

Basic Information and Ratios

	Symbol:	SIBK
	Exchange Market:	Amman Stock Exchange
		(www.ase.com.jo)
	Free Float:	13.9 %
	Closing Price:	JOD 2.09
	Market Value :	JOD 193mn

Share Key Ratios

 Average Price (52 weeks):	JOD 1.93
	Return (last 52 weeks)	1.10%
	PE Ratio	13.2x
	PB Ratio	1.08x
	Volatility	0.08 JOD
	Payout Ratio*	114%

Historical Share Price

Shareholders Composition

Al Etihad Investment

Company

62.4%

100,000,000

Outstanding Shares	9.4%
		5.6%
	4.9%
14.0%	3.7%

9

2.00

1.50

1.00

0.50

0.00

Social Security

Government Investments

Managemet Company

Orphans Fund

Development Cooperation

* 2023 stock dividends

Others

Al Etihad Bank