Jordan Kuwait Bank (JKB) has announced its financial performance results for the year 2023, reporting impressive growth across key indicators. Nasser Lozi, Chairman of the Board of Directors, reported that the bank achieved net profits after taxes of JOD 90 million, marking an exceptional growth of 380% compared to 2022. The pre-tax profits by the end of last year amounted to approximately JOD 121.6 million compared to JOD 27.3 million in 2022, reflecting a growth of 344.8 %.
Considering these positive results, the Board of Directors has recommended to JKB’s General Assembly of shareholders the distribution of 8% of its capital as cash dividends. Noting that both the financial statements for 2023 and the recommended cash dividends are subject to approval from the Central Bank of Jordan and the General Assembly.
The bank's profit growth is a strong indicator of its financial position, the success of its regional expansion strategy, and its dedication to delivering exceptional banking services.
The preliminary financial results showed a significant increase in several key financial indicators for the bank. Total assets increased from JOD 3.6 billion in 2022 to JOD 5.2 billion in 2023, representing a growth rate of 48%. Direct credit facilities also increased from JOD 1.9 billion in 2022 to over JOD 2 billion in 2023, with a growth rate of 4%.
Furthermore, 2023 recorded an impressive 42% increase in customer deposits and cash assets from JOD 2.9 billion at the end of 2022 to JOD 4.1 billion at the end of 2023. Additionally, shareholders equity recorded a 52.3% increase to reach JOD 727.5 million compared to JOD 477.6 million at the end of 2022.
The bank continued its policy of strengthening provisions against expected credit losses for financial assets to hedge against potential weakness in some accounts and against the impact on certain sectors by the current and potential repercussions on the national and regional economies, where more than JOD 64.5 million was allocated for this purpose for the year 2023, compared to JOD 33 million for 2022. The bank continues its diligent monitoring efforts for these accounts.
Performance indicators and efficiency ratios recorded commendable results, as the bank's return on equity ratio reached 16.5% last year, liquidity coverage ratio reached 340%, and capital adequacy ratio reached 19.35%. All these ratios are considered within the higher international standard levels. Additionally, the bank's stock price increased by over 53% during 2023.
Reflecting on these achievements, JKB’s CEO, Haethum Buttikhi, said: "We take immense pride in Jordan Kuwait Bank's exceptional achievements last year. These results are the outcome of dedicated efforts from the entire team and our strong commitment to providing the best banking services to our valued clients.
Buttikhi further emphasized the bank's commitment to supporting vital sectors that contribute to driving the national economy forward, stating: "We believe in the importance of our role in promoting sustainable development and creating new job opportunities. This recognition stems from our understanding of the current challenges facing the national economy, and we are working diligently to alleviate the consequences of these circumstances by providing innovative financial solutions and supporting small and medium-sized projects." He also commended the role of the Central Bank of Jordan in supporting the banking sector and enhancing its stability.
Nasser Lozi, the Chairman, expressed his gratitude and appreciation to the bank's shareholders and customers for their trust. He also thanked the Board of Directors, the executive management, the bank's employees, and the regulatory authorities in Jordan, Iraq, and Cyprus for their continuous support. He affirmed the bank's commitment and continued efforts to achieve further success and accomplishments, contributing to the development of the national economy.
