Key Financial Achievements – H1 2020
- Net Interest & Commission Revenue witnessed a slight decline of 1.2%.
- Gross Income declined 6.3% mainly as a result of non-funded revenues.
- Our cost control strategy remains whereby employee expenses came in 5.2% lower.
- Cost-to-Income ratio marked 69% with continuous efforts targeted towards levels that are lower than the industry average through lowering expenses and increasing profitability.
- Net provisions for expected credit loss registered around USD 12.3 million.
- A stable and solid asset base as the Net Credit Facilities to Total Assets has registered 50.9%, marking an ideal utilization of funds which leads to higher and more stable profitability.
- Slight decrease in Customer Deposits (-2%) and an increase of 4.5% in Net Credit Facilities enforces our strategy for efficiently managing cost of funds, while maintaining adequate Net Interest Margins (NIMs).
- A steady Loan-to-Deposit ratio of 78.4% which supports profitability and Asset-Liability Management.
- Gross NPL ratio of 7.5%, while our strategy and target of reaching below industry-average figures still holds. Net NPL ratio on the other hand stood at 6.4%.
- Stage 2 Loans to Gross Loans amounted to 8.73% as of June 2020 vs. 10.45% as of YE 2019.
- Loan Coverage ratio of 75.1% for H1 2020 (according to IFRS 9) is a sign of strength for how well JAB can withstand any unexpected losses.
- Capital Adequacy Ratio of 15.42% remains comfortably above CBJ’s minimum of 14%.
- JABs leverage at 8.02% remained comfortably above the CBJ’s minimum regulatory ratio of 4%.
- Shareholder’s Equity increased by 1.95% to register USD 442.5 million as of H1 2020.
- Total Assets increased by 1.83% marking a total of USD 3.97 billion.
- Credit risk exposure is concentrated in Jordan due to the geopolitical unrest in the region and the challenging operating environment.
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