Housing Bank's 2015 pretax profit rises 9% to JD177m

AMMAN — The Housing Bank for Trade and Finance (HBTF) announced on Monday in a press statement that its pretax profit increased by 9.2 per cent last year.

According to the statement, pretax profit rose to JD177 million at the end of 2015 from JD162.1 million at the end of the previous year.

The net profit after tax stood at JD124.7 million, JD0.8 million higher than the amount at the end of 2014.

The bank attributed the limited increase in net after tax profit primarily to the income tax which was raised from the beginning of last year to 35 per cent from 30 per cent.

HBTF Chairman Michel Marto underlined in the statement the bank's successful strategy, prudent policy and its adoption of banking standards in line with latest developments and practices.

He indicated that the bank's assets went up by 4.3 per cent reaching JD7.9 billion at the end of last year and that customers' deposits totalled JD5.8 billion, 6.4 per cent higher than the total at the end of 2014.

Marto revealed that credit facilities surged by 28.6 per cent to JD3.5 billion.

"These results reflected positively on a number of basic indicators of the bank's performance, enhanced its financial position, strengthened its capital base, and ensured the safety and soundness of its credit and investment portfolios during these difficult circumstances," the press statement said.

The chairman indicated that the capital adequacy ratio stood at 17 per cent and that the liquidity ratio was 147 per cent, noting that they were higher than the ratios required by the Central Bank of Jordan (CBJ).

He said that the average return on assets before tax rose to 17 per cent from 15.5 per cent and that the rate of non-performing loans (NPLs) declined to 4.8 per cent.

Marto added that the rate of provisions covering NPLs improved to 112 per cent from 107 per cent in 2014 and that the rate of net loans to customers deposits stood at around 60 per cent.

The statement highlighted the bank's outlets, noting that HBTF remained the market leader in terms of number of Jordan branches and ATMs which at the end of last year numbered 126 and 214 respectively.

The number of local and international branches were given at 178 spread in Syria, Algeria, Britain, Palestine and Bahrain besides Jordan.

"The results of the branches and subsidiaries abroad were good considering the circumstances where they operate," the statement said.

HBTF also has representative offices in Iraq, the United Arab Emirates and Libya.

Based on these results which are preliminary and require the CBJ endorsement, the board of directors is recommending to the general assembly of shareholders the distribution of cash dividends at a rate of 32 per cent.