Banking sector shows resilience despite economic headwinds - ABJ

AMMAN — The Association of Banks in Jordan (ABJ) on Monday held its Ordinary General Assembly meeting on Monday, amid a dynamic financial landscape and evolving economic challenges.

Chaired by Bassem Khalil Al Salem, the virtual meeting brought together representatives from all banks operating in Jordan to evaluate the sector’s performance and strategies for the year ahead.

The General Assembly reviewed the Board of Directors’ annual report on the association’s 2024 activities and examined the audited financial statements for the fiscal year 2024.

In a statement provided to The Jordan Times, Salem delivered a comprehensive analysis of Jordan’s economic performance, highlighting that the country’s GDP grew by 2.4 per cent during the first three quarters of 2024.

He also noted that inflation remained controlled at 1.56 perc ent, while the unemployment rate decreased to 21.4 per cent. On the fiscal front, the budget deficit, after grants, widened by 12.8 per cent, reaching 5.6 per cent of GDP. Public debt, including liabilities held by the Social Security Investment Fund, rose by 7.2 per cent to 122 per cent of GDP.

"Despite external pressures, Jordan’s banking sector continued to drive economic activity. Exports increased by 5.8 per cent, while imports grew by 4.5 per cent, contributing to a 3.2 per cent rise in the trade deficit compared to the previous year."

In the financial sector, total assets expanded by 5.6 per cent, credit facilities grew by 4.2 per cent, and total deposits saw a rise of 6.8 per cent.

Financial analyst Suzan Bourini emphasised that “Jordanian banks have maintained strong liquidity levels despite economic challenges.” She pointed to the steady growth in credit and deposits as a reflection of the sector’s resilience and adaptability to changing conditions.

The association’s 46th annual report also addressed interest rate movements and summarised key activities and achievements.

Banking governance consultant Hatem Hourani highlighted the critical role of partnership in sustaining growth within the sector. He noted that Jordanian banks have demonstrated effective coordination with regulators and industry stakeholders to navigate the evolving economic landscape.