ib-annual report 2016 signature (1) - investbank · 2018-05-29 · raouf abu jaber &sons co....
TRANSCRIPT
The
Boa
rd o
f Dir
ecto
rs r
ecom
men
ds to
the
resp
ecte
d sh
areh
olde
rs th
e fo
llow
ing,
ba
sed
on w
hat w
as p
rese
nted
:
2.Ap
prov
al o
f the
Boa
rd o
f Dir
ecto
rs r
ecom
men
datio
n to
dis
trib
ute
profi
tsto
the
shar
ehol
ders
in th
e am
ount
of 1
0 m
illio
n JO
D (t
en m
illio
n JO
D),
or 1
0% o
f the
cap
ital.
3.Ap
poin
ting
an a
udito
r fo
r th
e fis
cal a
ccou
nts
for
the
year
201
7
On
this
occ
asio
n, th
e B
oard
of D
irec
tors
wis
hes
to th
ank
the
shar
ehol
ders
an
d al
l clie
nts
of th
e B
ank
for
thei
r co
nfide
nce
and
supp
ort,
and
reco
gniz
es
all e
mpl
oyee
s fo
r th
eir
loya
l and
ded
icat
ed s
ervi
ces
whi
ch e
ffect
ivel
y co
ntri
bute
d to
the
cont
inue
d su
cces
s of
the
Ban
k.
1.R
atifi
catio
n of
the
Fina
ncia
l Sta
tem
ents
for
the
year
201
6 an
d cl
eara
nce
of th
e B
oard
of D
irec
tors
for
the
said
yea
r.
2006
2007
2008
2009
2010
%25
%11.50
%14.15
%10.71
%10
11,000,000
6,325,000
8,675,000
7,500,000
7,750,000
2009
2.000
4.000
6.000
8.0007.238
10.887
9.596
11.25211.931 12.365
14.310
10.000
12.000
14.000
2010 2011 2012 2013
16.000
2014 2015 2016
15.607
The Bank continued the distribution of free shares to the shareholder in the framework of its effort to increase the capital of the Bank and in a way that complies with the requirements of the Central Bank and strengthens the financial base of the bank. A total of 8.250 million shares were distributed annually from the years 2006 until 2010 as shown in Schedule No. 10
The following graph shows the annual profits after taxes from 2009 to 2016.
34th
-
The shares owned by members of the Board of Directors and individuals in the senior management and their relatives and the controlled companies for the years 2016 and 2015
Abdul Rahim Jardaneh & Sons Co.,represented by:
Madaba Financial Investment Co., represented by:
Mr. Ayman Shafiq Farhan Jumaian
Dr. Nabil Hani Jamil Qaddumi
Raouf Abu Jaber &Sons Co. represented by:
Jordan Medical Drug Co. represented by
Mr. Abdul Rahim Nizar Abdul Rahim Jardaneh
Mrs. Wijdan Mohammad Yaseen Khalil Altalhouni
Mrs. Zina Nizar Abdul Rahim Jardaneh
Fahmi bin Faeq bin Fahmi Abu Khadra
Bank of Palestine represented by
Mr. Roshdi Mahmoud RashidAlghalayeeni
Mr. Jiries Spero Jiries Alisa
Mr. Hani Ibrahim Suleiman Fadayel
Mr. Emad Nihad Khalil Jeryes
Member
Member
Member
Member
Member
Member
Member
Member
Member
Mr. Bisher Mohammad Abdul Rahim Jardaneh
Chairmanof theBoard
Vice Chairman
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Saudi
Palestinian
Palestinian
Kuwaiti
185,581
850,000
38,138 95,699 95,699
57,561
2,153,936
9,088
20,000
1,009,479
8,431,216
4,962,866
97,000
5,000
5,320 5,320 5,320
5,000 5,000
97,000 1,000,359
5,994,399
9,420,627 9,420,627 9,420,627
5,994,399 2,420,407
4,962,866 4,962,866
9,088
2,153,936
29,088
9,440,695 9,440,695
2,153,936
1,035,581 185,581
Annual Report 34th
3Annual Report 34th
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Bank of Palestine
Abdul Rahim Nizar Abdul Rahim Jardaneh
Almadar International Investment Co.
Fahmi bin Faeq bin FahmiAbu Khadrah
Hazem bin Faeq bin FahmiAbu Khadrah
Samer bin Faeq bin FahmiAbu KhadrahZina Nizar Abdul Rahim Jardaneh
Ihab Shafiq Farhan Jumaian
Lina Nizar Abdul Rahim Jardaneh
The Congress Foundation
Zainah Saad Khalaf Altal
Tamarah Saad Khalf Altal
General Investment C0.
Nabil Hani Jamil Qaddumi
Saad Hani Jamil Qaddumi
Alzarka Grand Mills Co.
United Insurance Co.
Jordan Drugstore Co.
Total
Raghdah Hamdi Khalil Manko
Jordan Kuwaiti Bank
Jordan Kuwaiti Bank
Jordan Kuwaiti Bank
Jordan Kuwaiti Bank
Alkhaleej Bank/Kuwait
Alkhaleej Bank/Kuwait
Director of Insurance Regulatory Commission
Palestinian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Kuwaiti
Kuwaiti
Liechtenstein
Saudi
Saudi
Saudi
9,420,627
8,431,216
7,371,427
7,026,822
5,994,399
5,733,449
5,733,274
5,733,274
4,880,143
4,341,648
3,651,246
2,310,936
2,310,935
2,154,328
2,153,936
1,850,907
1,316,414
1,313,715
1,009,479
81,967,767
1,666,666
1,461,233
1,262,320
18,750
15,092,303
5,000 1,666,667
1,667,667
7,350,000
5,000 Board Membership
Board Membership
5,000
5,000
5,000
25,000
Board Membership
Board Membership
Board Membership
Annual Report 34th
2016
4,236 4,236
4,236 4,236
1,070 1,070
1,070 1,070
2,140 2,140
31,719 31,719
2015
1
1
2
3
Mr. Ayman Shafiq Farhan Jumaiaan
Abdul Rahim Nizar Abdul Rahim Jardaneh
Nizar Abdul Rahim Nizar Jardaneh
Darah Abdul Rahim Nizar Jardaneh
Rawan Abdul Rahim Nizar Jardaneh
Wijdan “Mohammad Yasin” Khaleel Al Talhouni Bassam Khaleel Abdul Rahim Alsaket
Bisher Mohammad Abdul Rahim Jardaneh
Ayman Shafiq
Montaser Izzat Ahmad Abu Dawwas Chief Executive Officer
Almashreq Real Estate Services
Co.
Private Joint Stock
Company
Private Joint Stock
CompanyPrivate Joint
Stock Company
Arabtech Jardaneh Palestine/Architects
& EngineersMadaba Financial
Investment Co.
Chairman of the Board
Vice Chairman
Nahlah Tawfeeq Jeryes Karadsheh
Zaid Ayman Shafiq Jumaiaan
Wife
Son
Son
Daughter
Daughter
Husband
Vice Chairman
Member
Member
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
Jordanian
329,141
33,331
38,138
500,000 %0.05
38,138
33,331
329,141
Palestinian
No shares are owned by relatives of individuals in senior / executive management.
No shares are owned by companies controlled by individuals in senior / executive management or their relatives.
1
2
3
4
5
6
7
Annual Report 34th
Bank of Palestine 9,420,627 9.421 9,420,627 9.421
8,431,216 8.431 8,431,216 8.431
7,371,427 7.371 7,371,427 7.371
7,026,822 7.027 7,026,822 7.027
5,994,399 5.994 2,420,407 2.420
5,733,449 5.733 2,329,035 2.329
5,733,274 5.733 2,328.561 2.329
Abdul Rahim Nizar Abdul Rahim Jardaneh
The total balance of loans and director and indirect facilities used as at the end of 2016 and that were grantedto members of the Board of Directors of the Bank and persons related to them are as follows:
Almadar International InvestmentCo.
Raghdah Hamdi Khalil MankoFahmi bin Faeq bin Fahmi Abu KhadrahHazem bin Faeq bin Fahmi Abu Khadrah
Mr. Bisher Mohammad Abdul Rahim Jardaneh Group 3,127
64
6
1,870
2.3
981
2,006
0.16
8,056.46
Mr. Rauof Abu Jaber Group
Mrs. Wijdan Mohammad Yaseen Khaleel Altalhouni
Mr. Abul Rahim Nizar Abdul Rahim Jardaneh Group
Mrs. Zina Nizar Abdul Rahim Jardaneh
Mr. Ayman Safiq Farhan Jumaian Group
Dr. Nabil Hani Jamil Alqadoumi Group
Mr. Hani Ibrahim Suleimjan Fadayel
Total
Samer bin Faeq bin Fahmi Abu Khadrah
Annual Report 34th
Mr. Bisher Mohammad Abdul Rahim Jardaneh 6,000 49,000 5,000 60,000 0
6,000 6,618 5,000 17,618 1
5,500 2,500 4,286 12,286 2
5,500 4,079 4,286 13,865 1
6,500 2,000 4,286 12,786 1
8,250 750 4,286 13,286 1
5,500 49,000 4,286 58,786 1
6,000 49,000 5,000 60,000 0
6,000 6,736 5,000 17,736 0
8,250 2,500 4,286 15,036 2
6,000 5,604 5,000 16,604 0
69,500 177,787 50,716 298,003
Mr. Ayman Shafiq Farhan Jumaiaan
Mrs. Wijdan “Mohammad Yaseen” Khalil Altalhouni
Mr. Abdul Rahim Nizar Abdul Rahim Jardaneh
Mrs. Z Nizar Abdul RahimJardaneh
Dr. Nabil Hani Jamil Qaddumi
Mr.Hani Ibrahim Suleiman Fadayel
Mr. Jiries Spiro Jiries Alisa
Mr. Emad Nihad Khail Jeryes
Mr. Roshdi Mahmoud Rashid Alghalayeeni
Fahmi bin Faeq bin Fahmi Abu Khadra
Total
Annual Report 34th
1500,480 2,500 225,000 727,980
141,400 400 22,000 163,800
64,500 8,170 20,000 92,670
126,000 700 35,000 161,700
117,000 400 30,000 147,400
98,666 400 30,000 129,066
76,533 600 10,000 87,133
4,000 2,181 0 6,181
1,569,844 15,351 468,000 2,053,195
30,000 0 30,000
98,666 25,000 123,666
91,666 28,000 119,666
79,533 18,000 97,533
141,400 25,000 166,400
Montaser Izzat Ahmad Dawwas
Chief ExecutiveOfficer
Chief Risk Management
Head of Internal Audit Department
Assistant / Facilities for large corporationsDepartment
Assistant / Commercial BankingServices Department
Emad Osama Abdulrahim Asfour
Mohammad Ali Yousef Hawash(Up till 2016/07/31)
Ramzi Ridwan Hasan Darweesh
Mohannad ZuhairAhmad Bokah
Tarerq “Mohammad Nazih” Mohammad Mamdooh Sakkijha
Assistant / Personal Banking Services Department
Mayes Adnan Mahmoud Alshalabi
Ra’ad Moneer Abdulrahim Abu Resa’
Mohammad AliWaleed Abu Anza
Executive Manager/ Organizational Development Department
Executive Manager, Legal Department
Jareer Na’el Jamil Alajlouni
Executive Manager/ Treasury Depatment
Mohammad Saeed Yahya Fayeq Aldajani
Executive Manager/ Financial Corporations
Rola Adel Kamel Zakareya(Starting 2016/08/01)
Khaled Zuhair Jamil Abu Alsha’er(up till 2016/01/31)
Total
Executive Manager/Compliance Department
Executive Manager/Compliance Department
2
3
4
5
6
7
8
9
10
11
12
13
COMMUNITY SERVICE AND PROTECTION OF THE ENVIRONMENT
Annual Report 34th
When community service aims to achieve the highest concept of investment, then growth will be achieved, and sustainability is reached and all efforts are combined to achieve targets, and this is the path we have set ourselves in INVESTBANK in all the multiple initiatives we stated within our program of social responsibility. We aspire through these initiatives to reflect our vision in the noblest way, and we desire to establish as a top priority a community service that will give people the dignified life they deserve.
We view the environment as one of the most important factors in the process of development, and when environment receives proper backing and support in all fields it becomes a fertile ground for more investment, both in human and material resources, thus it has become the first axis of our attention and care.
The second axis in our social plans is to empower local communities to enable them to face challenges and to create new employment opportunities to enable these communities to become self sufficient.
We did not neglect support of cultural and artistic initiatives that aim to preserve the civilized and cultural heritage, thus we supported the creative economy that highlights the abilities of our local artists in this field, thus enabling them to present civilized Jordan in all aspects.
Renewable energy is the new language of the world today, accordingly we established our own project to generate electricity, thus becoming the first bank in Jordan to utilize renewable energy source to cover all its electricity requirements.
We are proud today of all the successes we were able to achieve in the field of social responsibility and are determined to consolidate all our efforts to continue with the path we set for ourselves to serve our community, thus investing in a better future for ourselves and for future generations.
Four Winters
On the environmental level, and within INVESTBANK’s Al Shams fund initiatives, the Bank sponsored the organic farming project as part of Al Shams Farmers’ Market for five years in Ajloun region and the surrounding villages. We provided financing of organic seeds, pesticides, organic fertilizers, and irrigation water. INVESTBANK, jointly with the Royal Society for the Conservation of Nature, trained farmers of Al Kifah Cooperative Society, a community based organization, on methods to reduce wastage of products and proper packaging of produce. This enabled the farmers in the past years to increase their production on annual basis and to expand their commercial activity in the local market and to serve the markets of the capital Amman.
The project achieved an increase of %40 in production, and an increase in total sales by %46, the number of direct beneficiaries of the project reached 285 farmers and the indirect beneficiaries reached 1,078 in 2016, compared to the year before. To enforce the sustainability of the project, INVESTBANK expanded the initiative to include new cooperative societies by training members of these societies to give them proper qualification, jointly with Al Kifah Cooperative Society, by introducing them to all the fundamentals of organic farming.
The initiative was further enforced by signing a memorandum with the Jordanian Organic Farming Association to strengthen the national cooperation in the field of organic farming , giving particular attention to the training and licensing internationally accredited Jordanian organic farming inspectors.
INVESTBANK also created new marketing channels by signing partnership contracts with private sector establishments to introduce Al Shams Farmers’ Market and to created new sources of income for the farmers. The Bank introduced Al Shams Farmers’ Market to Four Winters in the spirit of “ from the farm to the table”, and Four Winters created Golden Apple Pie Ice Cream, utilizing as an ingredient chemicals free apples supplied by Al Shams Farmers’ Market, and %25 of the income generated was utilized to build a plastic green house in Ajloun farms.
Annual Report 34th
Annual Report 34th
Within the same concept, INVESTBANK expanded its sponsorship to cover the southern region of Jordan, by establishing partnership with Zikra Initiative, to create a development food production project in Ghor Al Mazaraa region. This project aims to empower the local community, which has the highest poverty rate in the Kingdom. The project aims to enforce environmental sustainability by reducing wastage of the tomatoes harvest, being the crop that is subject to the highest wastage in Ghour Region. It also aims to increase the value added to the harvest by enabling the processing of the produce into other food products, such as dried tomatoes, crushed dried tomatoes, dried tomatoes powder, tomatoes vinegar, and other products. The project also aims to bridge the gap between the farm and the local produce market.
In the field of cultural and educational level, the increased support that INVESTBANK has offered to the Petra National Trust has achieved notable success which solidified the necessity of the partnership with the Society to fulfill their vision of directing the creativity of young people to serve the Rose City environment, and to market Petra as an international landmark and heritage. A new series of functions were introduced to train and qualify forty young men and women from the Petra Region by local visual artists to build their abilities and skills to introduce work of art highlighting the beauty of the Rose City. The art works will be exhibited in a dinner banquet inspired by the Nabatian heritage, the revenue of the banquet will be allocated to support the activity of Petra National Trust.
Annual Report 34th
INVESTBANK played a leading role in the field of renewable sources of power. The Bank executed the solar power generation project by installing solar panels over the head office’s parking lot. The solar power generation project is a clean source of energy aiming to product a maximum of 386 kilowatt, providing %65 of the bank’s electricity requirements. INVESTBAK is the first bank to utilize renewable sources of power to cover parts of the requirements of the head office of electricity. The bank is currently studying the possibility to expand this successful project to utilize renewable sources of energy by installing solar panels to all branches of the bank.
Annual Report 34th
INVESTBAK enforced this year the concept of practicing healthy habits among staff, which contributes to improving their quality of life and their daily performance. The Bank continued holding educational lecture covering various subjects of interest to the staff, and also conducted free medical test for staff of the head office and all the branches, jointly with Medlab medical laboratories and Jordan International Insurance Company. These tests will be carried out on annual basis, as continuation of staff health and educational campaign introduced by the Bank last year under the heading “Time to Change”.The Bank also created in cooperation with the National blood bank a special blood storage facility for the bank employees, in which their blood donations are preserved for their use, or for the use of their relatives in emergencies. Staff will donate blood for this program every six months. As for developing human capabilities, INVESTBANK continued its charitable practice of supporting Gifted Autistic Children Society by offering scholarships for autistic children, in addition to covering the expense of training some of the children to integrate them in the society and for them to become effective participants in utilizing their energies. The Bank also provided support for the training of mothers on coping with their autistic children.
•
•
•
•
Annual Report 34th
Royal Society for the Conservation of Nature
Zikra Initiative
Hashemite Jordanian Fund
National Society for the Conservation of Petra
The Society for the Care of Gifted Autistic Children
Others
Total
67,750
19,140
19,976
15,500
5,000
1,314
128,680
Auditing fees for INVESTBAK in the year 2016 were 66,000 JOD
Auditing fees for the subsidiary Al Mawared for Financial Brokerage Company in the year 2016 were 8,500 JOD
Auditing fees for the subsidiary Tamkeen Leasing Company in the year 2016 were 7,500 JOD
Auditing fees for the subsidiary Al Istethmari Letamweel Selselat Al Imdad in 2016 were 6,500 JOD
Annual Report 34th
This is an independent unit that studies and deals with complaints of clients and responds to these complaints as quickly as possible. We aim to present the best service to our clients and enforce the loyalty and communication values with them and to satisfy their expectations. The Client Care Department staff strives to carry out all efforts to solve any client complaint and to reduce the permitted timeline to deal with every complaint. This target is achieved by reinforcing the staff knowledge and educating them on banking procedures and regulations
BRANCHES 85 57 9 23
4 8 2 1
42 27 29 25
0 0 15 0
135 36 0 3
1 6 5 1
1 2 0 0
5 2 0 1
0 0 0 9
1 1 0 1
0 3 2 0
274 142
542
62 64
COLLECTION
ELECTRONIC SERVICES DEPARTMENT
INFORMATION TECHNOLOGY DEPARTMENT
SALES
CREDIT AND FACILITIES PROCEDURES/ PRODUCTS DEVELOPMENT DEPARTMENT
LEGAL DEPARTMENT
CASH DEPARTMENT- ATM’S FAILURES – CALL CENTER
COURIER COMPANY / ARAMEX
CHECKBOOKS AND PASSWORDS PRINTING UNIT
TRANSFERS AND OPERATIONS DEPARTMENT- LOAN EXECUTION DEPARTMENT
TOTAL
TOTAL NUMBER OF COMPLAINTS
- All complaints were handled and solved to the satisfaction of clients and according to the policies andprocedures of the Bank.
- A circular was issued to all employees of the Bank stressing the necessity of clarifying commissionscharged by the bank, thus ensuring all clients are fully aware of the commissions charged to their accounts.
- A circular was issued to all employees of the Bank stressing the need to explain to clients the timerequired by the Bank to complete their transactions.
Annual Report 34th
The Bank’s management takes care in attracting qualified candidates for vacant positions, and then the applicants are screened to select the best qualified ones based on the selection standards and the approved hiring policies. This policy guarantees that sufficient numbers of properly qualified staff are available at the proper time and as per the Bank’s organization chart and manpower plans. By following this principle, properly qualified and capable employees are then selected to carry full responsibility to achieve the vision of INVESTBANK and achieve the planned targets. The Bank appointed qualified staff with distinguished experience in the banking field in 2016 to supplement its staffing structure. The number of the Bank’s employees and subsidiary companies in the end of 2016 reached 665 employees.
Following is a presentation of the number of employees as per their qualifications and distribution of staff in the head office, branches and subsidiary companies.
Phd 0
22
396
48
17
25
508
Master degree
Bachelor’s degree
Diploma
General Secondary school
Less than secondary school
Total
• Mr. Khaled Abu Alshaer / Head of Compliance Department resigned on 2016/01/31
• Mr. (Mohammad Ali) Hawash / Head of Internal Audit Department resigned on 2016/07/31
The staff are distributed among the Head Office and branches and the subsidiary companies:Al Istethmari Letamweel Selselat Al Imdad , Al Mawared for Financial Brokerage Company, and Tamkeen Leasing Company and as per the work loads. This guarantees proper execution of the required tasks from each employee and guarantees the highest level of productivity and performance. Following is the number of employees in each location:
305
23
9
11
11
13
11
9
6
6
7
7
11
9
70
508
12
48
16
81
157
Annual Report 34th
Head Office/ Abdul Hamid Sharaf Street
Main Branch / Head Office
Prime clients service center / Head office
Makkah Branch / Makkah Street
Emar Branch / Emar Towers
Taj Mall Branch / Taj Mall
Swaifiyah Branch / Wakalat Street
Wihdat Branch / Al Sharq Al Awsat Roundabout
Sahab Branch / Sahab Industrial City Branch
Zarqa Branch / King Hussain Street
Irbid Branch / Wasfi Eltal Street
Aqaba Branch / Alnahda Street
Abdoun Branch / Suleiman Qidah Street
Dabouq Branch / Mohammad Ahmad Tareef Street
Sales Department
Al Mawared for Financial Brokerage Company / Shmaisani
Al Istethmari Letamweel Selselat Al Imdad / Alqastal
Tamkeen Leasing Company / Makkah Street
Jordan Trade Facilities Company / Shemaisani (A subsidiary of Tamkeen Leasing Company)
Total
Total
1
1
1
1
7
1
4
1
1
1
1
3
1
3
1
1
4
2
6
7
1
2
4
1
3
1
2
2
1
1
1
1
1
Annual Report 34th
In line with the Bank’s policy to develop the skills and abilities of its staff and to enable them to carry out their duties efficiently and productively, which leads to raising the level of service and productivity of the Bank, %29 of the Bank employees participated in specialized training courses and workshops, some of which are:
2nd Annual Product Development Excellence in Banking MENA Allan Llloyds Group
3rd Banks Risks Conference Albaross Consulting
4th Annual Procurement Strategy Summit 2016 Fleming Gulf
Advanced Company Analysis,Valuation &Financial Modelling Euro Money
Advanced Corporate Credit Analysis / Moody's Analytics Banking Studies Institute
Bayt.com's Thought Leader Event Bayt.com
Certified Anti Money Laundering Specialist Banking Studies Institute
Cisco Certified Network Asscociate Specialized Technical Services (STS)
Cisco Otrain
CISSP Specialized Computer Technical Services (STS)
COBIT 5 Samir Abu Tahoon Center (SMT – Center)
COBIT 5 Foundation Risk Management Consultants
COBIT 6 Samir Abu Tahoon Center (SMT – Center
CPA Course Morgan International Jordan
CRISC ISACA Organisation
EBRD TFP Trade Finance Forum EBRD Financial Institutions
EBRD Trade Finance Workshop on Banks Guarantees European Bank for Reconstruction & Development
Enhancing Access to finance for small and medium Enterpresies Jordan Banking Association
Foreign Account Tax Compliance ACT - FATCA Banking Studies Institute
IFRSQ- a Practical guide to missing successful implementations Moody’s Analytics
IFRS 9 Understanding the new regime for financial instruments International Faculty of Finance (IFF)
Implementing CISCO Secure Mobility Otrain
ITIL Foundation V3.5 Specialized Technical Services (STS)
ITIL Foundation V3.6 Specialized Technical Services (STS)
Jordan's Securities Market Jordan Banking Institute
Leadership Skills For Auditors The Institute of internal Auditors
Leadership Skills For Supervisors: Communication,Coaching & Conflict Specialized Technical Services STS
Mobile Payment Security Forum Risk Management Consultants
Newset Trends in Risk Management Solution & KYC Pio Tech
Oracle HCM Cloud Day Jordan Oracle
PCI DSS compliance Business as usual workshop EMP
PCI DSS Version 3.1 Global Business Promotion
PCI Security Standards Council
1
1
16
2
1
1
1
1
2
1
1
2
2
2
1
3
2
3
1
5
2
1
2
1
1
3
1
1
1
5
1
2
4
PMI Professional in Business Analysis Pioneers Academy
Project Management Professional Process & Smith
Real Change Ripple Management / Inhouse
Risk Analyst Analytic Tools and Modelling Workshop Risk Matrix LTD
SIBOS Conference SIBOS
The Advance Executive PA Masterclass Training Appanage Learning & Development
The Regional Compliance Workshop Financial Crime Compliance Academy
The Training and development Show Terrapinn
The Visanet Clearing & Settlement System EMP Emerging Markets Payments
Stores and Warehouse Management London Gate Academy
Preparation of Interior Auditing Report and Currency according to IAA standards
Osool Training and Consultancy
Electronic Archiving and Filing Osool Training and Consultancy
Credit issued based on power of Incoming of Credit International Chamber of Commerce
Qualification Program to pass the certification of accredited money laundering specialist ( CAMS)
Banking Studies Institute
Credit analysis for loan applications by emerging small andmedium enterprises
Global Communities Jordan
Financial Analysis for Loaning Purposes General Union of Banking and Insurance Employess
Labor Regulations ( Jordan Labor Law – Social Insurance Law –Income Tax Law)
Almutaseloon Alawael for Training andConsultancy
Financial and Cash Flow Analysis Banking Studies Institute
Central Bank Guidelines for local and foreign transfers Jordan Banking Association
Central Bank Guidelines for granting credit facilities Jordan Banking Association
Transfers and drafts Banking Studies Institute
Part one – Certified Internal Auditor Certification (CIA) Banking Studies Institute
International Standard for Financial Reports 9 Albatross Consulting
International Standard for Financial Reports 9 Jordan Banking Association
Issued Guarantees Jordan Banking Association
Advanced Skills in Health Insurance Knowledge Kingdom for Consultancy and Training
Advanced Skills in Electronic Office Management and Organizing Knowledge Kingdom for Consultancy and Training
Guarantee Program for Emerging Small Enterprises Jordan Banking Association
CICS Osool Training and Consultancy
Specialized Vocational Diploma in Financial Analysis Program Banking Studies Institute
Clearing of net results for cards activity based on Real Time Gross Settlement System (RTGS)
Central Bank
Affect of Recommendation 16 issued by FATF on banking activitiesof clients’ transfers
Arab Academy for Financial and Banking Sciences
Application of Automatic Clearing House (ACH) Central Bank
Annual Report 34th
Annual Report 34th
2
3
1
11
3
7
1
3
2
1
1
2
1
1
2
15
3
1
1
2
2
1
New Procedures in developing Stress Testing Albatross Consulting
New Amendment to Basel 3 Albatross Consulting
Enforcement of supervisory and regulatory bodies and reduction of risks related to corresponding banks De Risking
Arab Banks Federation
Evaluating , financing and monitoring projects Banking Studies Institute
Accounting Standards No. 9 Albatross Consulting
Developing skills and behavior of tellers and client relations employees in banks and financial institutions
Banking Studies Institute
Financing small and medium projects Jordan Banks Association
Swift transfers Banking Studies Institute
Banking forgery and counterfeit detection Banking Studies Institute
Master of business administration Open Arab University
Bank methods of handling international sanctions and embargo AZ International
Internal auditing standards as per the standards of international internal auditors institute IIA
Osool Training and Consultancy
Health and vocational safety supervisor Jordan Pulse Academy
New International Financial Report Standard No. 16 related to accomplishments
Jordan Securities Commission
Time management and work pressure management skills Banking Studies Institute
Excellence skills in clients relation service Banking Studies Institute
41st Arab dealers conference Financial Markets Association
Power efficiency application workshop Jordan Banks Association
Common Reporting Standards Symposium – Challenges and suggested solutions
Jordan Banks Association
Introduction workshop to the updates on the execution departmenton the Amman Trial Court
Ministry of Justice
Workshop on dealing with sovereign financial instruments and the Jordan capital market
Central Bank
Compliance function in accordance with the guidelines of combating money laundering and financing of terrorism
Albatross Consulting
The Bank adopts a clear policy of calculating employees’ perks based on return on equities compared to the anticipated return for the same year. Portions of the allocation of perks are executed as delayed payment units as per the bank approved policies and based on the evaluation of the annual performance of employees and on achieving the targets allocated to them, and these are divided into financial, supervisory and managerial targets.
NAMES AND CURRICULUM VITAES OF MEMBERS OF THE BOARD OF DIRECTORS
Annual Report 34th
1961
2008/5/26
CHAIRMAN OF THE BOARD Abdul Rahim Jardaneh and Sons Co.
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER 185,581NAME OF THE INDIVIDUAL REPRESENTING THE LEGAL ENTITY Mr. Bisher MohammaAbdulRahim Jardaneh NO. OF SHARES OWNED BY THE REPRESENTING PERSON
DATE OF BIRTH
DATE OF JOINING THE BOARD
NATURE OF MEMBERSHIP Non executive / Not independent
ACADEMIC QUALIFICATION
EXPERIENCE AND POSTS HELD
- Executive General Manager / Arabtec Jardaneh Group Co.- Member of the Greater Amman Municipal Board- Member of the Board of Trustees of Cooperation Organization(Welfare ) / Geneva, and Head of the Strategy and GovernanceCommittee- Member of the Board, Jordan Investment Promotion Authority- Member of the Board / Almafraq Development Organization- Vice Chairman of the Board, Jordanian Strategy Forum- Vice Chairman – Zaha Children Organization- Member of the Board, Arab Orphans Committee- Chairman of the Arab Cultural Society
Mr. Jardaneh also held the following posts:- Member of the Executive Committee of the InternationalFederation of Consulting Engineers (FIDIC) / Geneva.- Member of the Royal All Jordan Committee- Member of the Royal Committee for Water in Jordan- Member of Investment Fund of Jordan Social SecurityOrganization.- Member of the Board / Nugul Group of Companies.- Member of the Board, Jordan Economic Development Council(JEDCO).- Chairman of the Board, Jordan Engineering and ArchitecturalBusiness Forum.- Committee Member, Jordan National Agenda Committee.- Member of the Young Presidents Organizations WPO –YPO.- Member /Jordanian Engineering Association- Member of Jordanian Businessmen Association, US-JordanBusinessmen Association and European – Jordanian BusinessmenAssociation
-BSC (Honor) in civil engineering , 1982 from Illinois University(Urbana-Champaign) – USA-MSC (Honor) , 1985 in construction management from
University of California – Berkeley – USA
Annual Report 34th
30/04/2006
57,5611961
VICE CHAIRMAN OF THE BOARD
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBERNAME OF THE INDIVIDUAL REPRESENTING THE LEGAL ENTITYNO. OF SHARES OWNED BY THE REPRESENTING PERSON
DATE OF BIRTH
DATE OF JOINING THE BOARD
NATURE OF MEMBERSHIP
ACADEMIC QUALIFICATION
EXPERIENCE AND POSTS HELD
Annual Report 34th
EXPERIENCE AND POSTS HELD
MEMBER OF THE BOARD Dr. Nabil Hani Jamil Qaddumi
NO. OF SHARES OWNED BY THE MEMBER OF THE BANK’S CAPITAL 2,153,936
DATE OF BIRTH 1954
DATE OF JOINING THE BOARD 01/01/2000
NATURE OF MEMBERSHIP Non executive / Non independent
ACADEMIC QUALIFICATION 1982 , Phd, Civil Engineering, Massachusetts Institute of Technology (USA)MSc Civil Engineering, Stanford University (USA),1977BSc , Civil Engineering, University of Texas, Austin (USA) 1976American University of Beirut, 1972 - 1975 , Civil Engineering
- Chairman of the Board, Projacs International (www.projeacs.com)- Chairman of the Board, Safwan Petroleum Technologies Co.(www.spetco.com)- 1982 -1994 Lecturer, Faculty of Engineering / University of Kuwait- 1989-1991Visiting Professor, Faculty of Engineering / StanfordUniversity- 2008 – 2014 Chairman, of the Board of - 2008 – present, Palestine Governor, Arab Fund for Economic and SocialDevelopment- Chairman of Hani Qaddumi Scholarship Foundation-
Annual Report 34th
VICE CHAIRMAN OF THE BOARD Raouf Abu Jaber and Sons Co.
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER 9 088
NATURE OF MEMBERSHIP Non executive / Not independent
NAME OF THE INDIVIDUAL REPRESENTING THE LEGAL ENTITY Mr. Emad Nihad Khalil jeryes (starting 12/02/2014)
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER
DATE OF BIRTH 1960
0 000
ACADEMIC QUALIFICATION BSc Commerce and Business Administration / Beirut Arab University
EXPERIENCE AND POSTS HELD
– General Manager, United Insurance Co.- Member of the Board, Jordan Union of Insurance Co., andHead of the Audit Committee.- Member of the Board , Jordan Paper and Cardboard Factories,and member of the Audit Committee.- General Manager, Arab European Insurance Co.- Deputy General Manager, Arab Eagle Insurance Co.
Annual Report 34th
NATURE OF MEMBERSHIP Non executive / Non independent
EXPERIENCE AND POSTS HELD
MEMBER OF THE BOARD Jordan Drugstore Co.
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER 1,009,479
NAME OF THE INDIVIDUAL REPRESENTING THE LEGAL ENTITY Abdul Rahim Nizar Abdul Rahim Jardaneh
NO. OF SHARES OWNED BY THE REPRESENTING PERSON 8,431,216
DATE OF BIRTH 1962
DATE OF JOINING THE BOARD 30/04/2006
ACADEMIC QUALIFICATION BSc Pharmacy, Minnesota University – USA 1984
-Chairman of the Board, Dar Al Dawa Development and Investment Co.-Chairman of the Board, Nutri Dar Co.-Member of the Board, Jordan Drugstore Co.
Annual Report 34th
MEMBER OF THE BOARD Mr. Fahmi Bin Fayeq Bin Fahmi Abu Khadra
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER
DATE OF BIRTH 1964
DATE OF JOINING THE BOARD 27/04/2011
NATURE OF MEMBERSHIP Non executive / independent
ACADEMIC QUALIFICATION MSc Business Administration
1987 – 1989 Credit Facilities Off cer / Arab Bank Head Off ce- 1989 – 2001 General Manager, Alriyadh Medical Services Co.-1991 – 2001 Member of the Board of Directors, Amman Surgical Hospital-2003 Chairman of the Board, Amman Surgical Hospital-1997 , Saudi Arabia, General Manager United PharmaceuticalManufacturing Co.-2004, Saudi Arabia, Manager, Medicinal Products and Rubber Factory-2007, Saudi Arabia , General Manager, Care Corporation-1999, Chairman of the Board, Switchers Limited, Britain.
EXPERIENCE AND POSTS HELD
MEMBER OF THE BOARD Mrs. Wijdan “Mohammad Yaseen” Khalil Altalhouni
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER
DATE OF BIRTH 1939
DATE OF JOINING THE BOARD 07/10/2009
NATURE OF MEMBERSHIP Non executive / independent
ACADEMIC QUALIFICATION BSc, Economy and Political Science
-1968 – 1973 Central Bank, Research and Studies Department.-Member of the Board of Director, Grand Flour Mills of Zarka.-Vice Chairman of the Board, Multaqa Altadawul Joint Stock Co.-Member of the Board of Directors: Investment , Trade and Export Co.-Member of Jordan Businessmen Association, and a member of thefollowing committees:-Finance & Economy Committee-Manufacturing Committee-Commercial Committee.-Member of the Board, Arab Business Women - Head of ProjectsCommittee-Chairman of the Board of Trustees, Jordan Business and professionalwomen Forum
EXPERIENCE AND POSTS HELD
Annual Report 34th
MEMBER OF THE BOARD PALESTINE BANK CO.
NO. OF SHARES OF THE BANK’SCAPITAL OWNED BY THE MEMBER 9,420,627NAME OF THE INDIVIDUAL REPRESENTING THE LEGAL ENTITY Mr Rushdi Mahmoud Rasheed Alghalayeeni (starting 30/04/2014)NO. OF SHARES OWNED BY THE REPRESENTING PERSON -
DATE OF BIRTH 1962
ACADEMIC QUALIFICATION BSc (Honors) , Economy and Computer Sciences, American University of Cairo, Egypt, 1986 Certificat in Assessing and managing risks in banks, Cairo
EXPERIENCE AND POSTS HELD 1989 joined the Bank of Palestine 2008 till the present Deputy General Manager, Bank of Palestine
Annual Report 34th
DATE OF
NATURE OF MEMBERSHIP
MEMBER OF THE BOARD
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER
DATE OF BIRTH
DATE OF JOINING THE BOARD
ACADEMIC QUALIFICATION
- Member of the Board Jordan Drugs Store.
EXPERIENCE AND POSTS HELD
MEMBER OF THE BOARD
NO. OF SHARES OF THE BANK’S CAPITAL OWNED BY THE MEMBER
DATE OF BIRTH
DATE OF JOINING THE BOARD
NATURE OF MEMBERSHIP
ACADEMIC QUALIFICATION
EXPERIENCE AND POSTS HELD
Annual Report 34th
MEMBER OF THE BOARD Mr. Hani Ibrahim Suleiman Fadayel
NO. OF SHARES OF THE BANK’SCAPITAL OWNED BY THE MEMBER 5320
DATE OF BIRTH 1952
DATE OF JOINING THE BOARD 30/04/2014
NATURE OF MEMBERSHIP Non executive / Independent
ACADEMIC QUALIFICATION -BSc/ Business Administration, University of Jordan 19751975 – 1985 Citibank, Jordan-1985 – 2009, Regional Manager, Arab Bank , Bahrain- 2010 till the present, General Manager, Fadayel AdministrativeConsultancy Co.- 2009 – 2010 , Assistant General Manager, Arab Bank , Amman /Jordan- 2010 – present, Member of the Board and Head of RisksManagement Department, BankMed/ Lebanon- 2011 – present, Member of the Board, GroupMed International,Lebanon.
EXPERIENCE AND POSTS HELD
NAME Mr. Bassam Mustafa Amin Hammad
POSITION
ACADEMIC QUALIFICATION BSc Accountancy / Business Administration
YEAR OF GRADUATION 1979
DATE OF APPOINTMENT 12/6/1983
DATE OF BIRTH 1952
1980 – 1983 Southern Cement Company1983 – 2007 INVESTBANK2008 – present, Secretary General of the Board of DirectorsFormer Member of the Board of Directors in the following companies:- Aldaman Investment Company- Bank Alquds- Woolen Industries Company- Aqaba Vegetable Oils Refining Company
EXPERIENCE AND POSTS HELD
Annual Report 34th
Annual Report 34th
CONSOLIDATEDFINANCIALSTATEMENTS
Annual Report 34th
DECEMBER 31 2016
-
Annual Report 34th
Annual Report 34th
TO THE SHAREHOLDERS OF INVEST BANK
In our opinion, the financial statements present fairly, in all material respects the financial position of Invest Bank (publicly listed Company) as at 31 December 2016, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
The Group’s consolidated financial statements comprise• the consolidated statement of financial position as at December 2016 ,31;• the consolidated statement of comprehensive income for the year then ended;• the consolidated statement of changes in equity for the year then ended;• the consolidated statement of cash flows for the year then ended; and• the notes to the consolidated financial statements, which include a summary of significantaccounting policies.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated Financial Statements section of our report.
We are independent of the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters Provision for impairment in direct credit facilities
Acquisition of a subsidiary
Overview
Provision for impairment in direct credit facilities We have performed the following procedures to assess the reasonableness of the Provision for impairment in direct credit facilities.
Annual Report 34th
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the directors made subjective judgments; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Bank, the accounting processes and controls, and the industry in which the Bank operates.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
As described in the accounting policies (2.10) ,(2.6) and note number (3) Critical Accounting Estimates And Judgments, the management calculates the provision for impairment in direct credit facilities according to the accounting policies described in note (2.10) (2.6) and in accordance with Central Bank of Jordan related instructions. The Management reviews the contracts individually or in group to assess whether there is objective evidence of impairment such as default in payments of customers. In case evidence exist the management assess the impairment value based on the recoverable amount from the assets mortgaged to the Bank and in accordance with the International Financial Reporting Standards and Central Bank of Jordan Instructions.
Due to the importance of these estimates and judgments, It is considered as significant risk which might lead to material misstatement in the consolidated financial statements when available information and estimates are misused to determine the provision value.As disclosed in Note (10) to the consolidated financial statements, management had recognised a provision for impairment in direct credit facilities with an amount of JD 23,314,696, while net direct credit facilities amounted to JD 538,630,285 which represents %56 of the group total assets as at 31 December 2016.
• Understood the nature of credit facilities.• Assessed management's methodology inclassifying loans and the method used indetermining the recoverable amount from themortgaged assets when sold and expected cashflow.• Tested sample of customers classified asnon-performing customers to check thereasonableness of their classification• Tested the information systems of the bank andthe automatic classification of the non-performingloans.• Assessed management's methodology inassessing the required provision as at 31December 2016.• Assessed the key assumptions used, based onour understanding of the group and the nature ofthe business.• Tested sample of management estimates of therecoverable amounts from the sale of mortgagedassets.• Tested select of relevant procedures andinternal controls applied by the management.• Re-calculated the provision for impairment indirect credit facilities for a sample of customers inaccordance with the International FinancialReporting Standards and Central Bank of JordanInstructions.• Assess the adequacy of disclosures over theprovision for impairment in direct credit facilities.
Acquisition of a subsidiary We have performed the following procedures regarding the acquisition process of Jordan trade facilities company:2.10) ,(2.6) The bank acquired %93,275 of Jordan Trade
Facilities company which owns %100 of Trade Facilities for Finance Leasing Company during the year 2016, through its subsidiary (Tamkeen Leasing Company), through a purchase of 15,390,385 shares with 1JD par value. The acquisition cost was JD 20,774,620 which resulted in a goodwill amounted to JD 1,430,598 disclosed under intangible assets. The acquisition process requires the management to use its professional judgement in determining the fair value of the net assets at the date of acquisition and determine the goodwill value in accordance with International financial Reporting standards.
Due to the importance of these estimates it is considered a key audit matter
As disclosed in Note (24-2) (Intangible assets) The goodwill represent the positive difference between the cost of acquisition or purchase price of the associate or subsidiary and the company’s net asset fair value at the date of acquisition. Impairment test for goodwill is performed at the date of each financial statement, and impairment is booked when there is objective evidence that the goodwill is impaired and the impairment loss is recorded in the income statement
• Assessed the Bank ability to control the relevantfinancial and operating policies of Jordan TradeFacilities Company.
• Assessed the computation of fair value of the netassets at and goodwill at the date of acquisition, inaddition to reviewing the specialist reports assignedby the bank for the acquisition process.
• Assessed the assumptions used in determiningthe value fair value.• Assessed the calculation of non-controllinginterest in net income and net assets of JordanTrade Facilities Company.
• Assessed the impairment test of the goodwill thatwas performed by the bank at year end.
• Assess the adequacy of disclosures overacquisition of a subsidiary.
Annual Report 34th
The directors are responsible for the other information. The other information comprises all the other information included in the Bank’s annual report for the year 2016 but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We read the other information, and there is no material misstatement therein, to communicate to those charged with governance.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Bank’s financial reporting process.
Annual Report 34th
Annual Report 34th
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theBank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bankto cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner that achievesfair presentation.
Annual Report 34th
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The Bank maintains proper accounting records and the accompanying consolidated financial statements are in agreement therewith the financial date presented in the Board of Directors’ report. We recommended that the General assembly of Shareholders approve these financial statements.
Amman - Jordan30 March 2017
page
1 -
6
7 8 9 10
Cont
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1 D
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27 28 29 30 31 8 32 33
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An
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Rep
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6
2016
6
2015
201 21,332,948 4,603,049 3,839,176 23,984,252 153,759,425 886,882 154,646,3075
(loss
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23,570,771 5,311,284 5,491,519 27,663,922 162,037,496 2,305,718 164,343,214
Annual Report 34th
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)1,
081,
426
280,
415
1313
(71,
663)
(283
,784
)(1
2,11
1)(1
7,46
9)
40,1
1890
,022
(1,5
54,5
92)
656,
453
(37,
260)
23,7
31,6
78
(500
,000
)(3
,621
,153
)
2,38
3,26
8(2
,885
)51
7,52
52,
490,
395
4,66
5,14
1(1
2,90
3,15
1)
22,6
85,5
33(2
,598
,509
)3,
007,
422
33,2
06,9
02
(4,2
05,8
74)
136,
980,
540
6,83
2,52
1
93,8
00,8
59
(48,
385,
195)
5,06
8,10
738
,740
,388
5,93
7,42
0(3
,296
,083
)
24,1
97,1
08
(7,7
25,7
03)
16,4
71,4
05
(2,8
46,3
89)
(6,7
48,4
98)
534,
487
149,
832
1,55
4,59
296
2,43
5
(45,
212,
272)
71,6
34,3
6368
,314
,452
(72,
698,
279)
(1,8
08,3
39)
(9,7
00,0
00)
17,6
06(4
79,2
32)
19,0
00(2
62,3
06)
(20,
774,
618)
375,
979
- -(2
4,27
1,51
0)7,
304,
323
(8,0
00,0
00)
(7,0
00,0
00)
25 17 30
41,5
01,8
2213
,832
,521
33,5
01,8
2241
,809
37,2
6043
,179
,681
25,7
38,9
7713
6,98
0,54
0
162,
719,
517
29,0
01,0
28
19,4
84,1
09(4
1,80
9)
(115
,317
)
(962
,435
)
(43,
051)
(39,
303)
6 6 7 10 13 15 16 20 8
Inve
st B
ank
(the
“Ban
k”) w
as e
stab
lishe
d as
a J
orda
nian
pub
lic s
hare
hold
ing
com
pany
und
er r
egis
trat
ion
No.
(173
) dat
ed 1
2 Au
gust
198
2 in
acc
orda
nce
with
the
Com
pani
es L
aw N
o. (1
2) fo
r th
e ye
ar 1
964
with
a p
aid
in c
apita
l of J
D 6
mill
ion
dist
ribu
ted
over
6 m
illio
n sh
ares
with
a p
ar v
alue
of J
D 1
per
sha
re.T
he B
ank’
s ca
pita
l was
incr
ease
d se
vera
l tim
es to
bec
ome
JD 7
7,50
0,00
0 / J
D 1
per
sha
re a
s of
31
Dec
embe
r 20
10.
Furt
herm
ore,
dur
ing
2011
, the
Ban
k’s
capi
tal w
as in
crea
sed
to J
D 8
5,25
0,00
0 / J
D 1
per
sha
re. F
inal
ly,
the
Ban
k’s
capi
tal w
as in
crea
sed
by J
D 1
4,75
0,00
0 on
10
Apri
l 201
2. A
ccor
ding
ly, t
he B
ank’
s au
thor
ized
and
paid
in c
apita
l bec
ame
JD 1
00 M
illio
ns /
JD 1
per
sha
re.
The
Ban
k’s
Hea
d O
ffice
is lo
cate
d in
Am
man
, Abd
Alh
amee
d Sh
araf
Str
eet,
Shm
esan
i, Te
l: 50
0150
0, P
.O B
ox 9
5060
1, A
mm
an –
111
95 J
orda
n.
The
Ban
k pr
ovid
es b
anki
ng a
nd r
elat
ed fi
nanc
ial s
ervi
ces
thro
ugh
its H
ead
Offi
ce a
nd T
wel
ve b
ranc
hes
in th
e H
ashe
mite
Kin
gdom
of J
orda
n, a
nd it
s su
bsid
iari
es.
Inve
st B
ank
is a
pub
lic s
hare
hold
ing
com
pany
list
ed in
Am
man
Sto
ck E
xcha
nge
Thes
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts h
ave
been
app
rove
d by
2.1
B
asis
of p
repa
ratio
n
The
acco
mpa
nyin
g co
nsol
idat
ed fi
nanc
ial s
tate
men
ts fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
16 o
f the
Ban
k an
d it
s su
bsid
iari
es a
re p
repa
red
in a
ccor
danc
e w
ith th
e st
anda
rds
issu
ed b
y th
e In
tern
atio
nal A
ccou
ntin
g St
anda
rds
Boa
rd (I
ASB
), in
terp
reta
tions
issu
ed b
y th
e Co
mm
ittee
of t
he IA
SB, p
reva
iling
loca
l law
s an
d re
gula
tions
of t
he
Cent
ral B
ank
of J
orda
n.
The
cons
olid
ated
fina
ncia
l sta
tem
ents
are
pre
pare
d un
der
the
hist
oric
al c
ost c
onve
ntio
n, e
xcep
t for
fina
ncia
l as
sets
at f
air
valu
e th
roug
h pr
ofit o
r lo
ss, fi
nanc
ial a
sset
s at
fair
val
ue th
roug
h ot
her
com
preh
ensi
ve in
com
e th
at h
ave
been
mea
sure
d at
fair
val
ue a
t the
dat
e of
thes
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts. H
edge
d as
sets
and
liab
ilitie
s ar
e al
so s
tate
d at
fair
val
ue.
The
repo
rtin
g cu
rren
cy o
f the
se c
onso
lidat
ed fi
nanc
ial s
tate
men
ts is
the
Jord
ania
n D
inar
whi
ch is
the
func
tiona
l cu
rren
cy o
f the
Ban
k.
The
acco
untin
g po
licie
s ap
plie
d in
pre
pari
ng th
e fin
anci
al s
tate
men
t for
the
year
end
ed 3
1 D
ecem
ber
2016
are
cons
iste
nt w
ith th
ose
used
in th
e ye
ar e
nded
31
Dec
embe
r 20
15 e
xcep
t for
the
info
rmat
ion
pres
ente
d in
note
(2-2
).
22,3
78,2
2620
,604
,844
2,85
2,14
92,
759,
899
(894
,045
)(3
,303
,506
)13
,466
7,30
716
3,29
526
4,51
2
8
2016
2015
Net
cas
h us
ed in
inve
stm
ent i
n su
bsid
iari
esN
et c
ash
gene
rate
d fr
om in
vest
men
t in
subs
idia
ries
Div
iden
ds p
aid
Bor
row
ed fu
nds
Effe
ct o
f exc
hang
e ra
te fl
uctu
atio
ns o
n ca
sh a
nd c
ash
equi
vale
nts
Net
incr
ease
in c
ash
and
cash
equ
ival
ents
Net
cas
h fl
ows
(use
d in
) gen
erat
ed fr
om in
vest
ing
activ
ities
Net
cas
h fl
ows
gene
rate
d fr
om fi
nanc
ing
activ
ities
Fina
ncin
g ac
tiviti
es
42
Annu
al R
epor
t 34
th
The
prin
cipa
l acc
ount
ing
polic
ies
appl
ied
in t
he p
repa
ratio
n of
the
se c
onso
lidat
ed fi
nanc
ial s
tate
men
ts f
or t
he
year
end
ed 3
1 D
ecem
ber
2015
exc
ept
for
the
impl
emen
tatio
ns o
f ne
w s
tand
ards
and
am
endm
ents
on
exis
ting
stan
dard
s as
men
tione
d be
low
:
(a)
New
sta
ndar
ds, a
men
dmen
ts a
nd in
terp
reta
tions
ado
pted
by
the
Ban
k
The
Ban
k ha
s ap
plie
d th
e fo
llow
ing
stan
dard
s an
d am
endm
ents
for
the
first
tim
e fo
r th
eir
annu
al r
epor
ting
peri
od c
omm
enci
ng 1
Jan
uary
201
6, w
hich
doe
s no
t hav
e a
mat
eria
l eff
ect o
n th
e ba
nks
finan
cial
sta
tem
ents
:
-Am
endm
ent t
o (IA
S 16
) Pro
pert
y, p
lant
and
equ
ipm
ent a
nd (I
AS 3
8) In
tang
ible
ass
ets
whi
ch r
epre
sent
s th
eac
cept
able
met
hods
for
depr
ecia
tion
and
amor
tizat
ion.
-Am
endm
ents
to IA
S (3
4) “
Fina
ncia
l sta
tem
ents
” re
gard
ing
the
disc
losu
res
in th
e fin
anci
al s
tate
men
ts.
-Am
endm
ent t
o IA
S (1
9) “
Empl
oyee
s be
nefic
iary
pla
n” th
at r
equi
re th
e us
e of
dis
coun
ted
curr
ency
rat
e to
mee
t the
obl
igat
ions
from
em
ploy
ee b
enefi
ciar
y pl
an.
-Am
endm
ent t
o IA
S (2
7) “
Sepa
rate
Fin
anci
al S
tate
men
t” r
esto
re th
e op
tion
of u
sing
equ
ity m
etho
d fo
r en
titie
sin
sep
arat
e fin
anci
al s
tate
men
t to
acco
unt f
or in
vest
men
ts in
sub
sidi
arie
s, a
ssoc
iate
s an
d jo
int v
entu
res.
-Am
endm
ent t
o IA
S (1
) “Pr
esen
tatio
n of
Fin
anci
al S
tate
men
ts”
clar
ify th
e re
quir
emen
t for
fina
ncia
l sta
tem
ent
pres
enta
tion
and
acco
untin
g po
licie
s di
sclo
sure
s.-
Amen
dmen
t to
IFR
S (7
) “Fi
nanc
ial i
nstr
umen
ts: D
iscl
oser
s” th
at r
equi
re d
iscl
osur
e of
info
rmat
ion
abou
tsi
gnifi
cant
fina
ncia
l ins
trum
ents
aft
er s
ale
and
disc
lose
the
clea
ranc
e be
twee
n fin
anci
al a
sset
s an
d fin
anci
allia
bilit
ies
and
was
not
men
tion
in IA
S (3
4)-
Amen
dmen
t to
IFR
S (1
1) “
Join
t agr
eem
ent”
whi
ch p
rovi
de a
spe
cific
met
hod
for
calc
ulat
ing
the
acqu
isiti
on in
a jo
int a
gree
men
t.-
Amen
dmen
t to
IFR
S (1
0) “
Cons
olid
ated
fina
ncia
l sta
tem
ents
” an
d IA
S (2
8) “
Inve
stm
ent i
n as
soci
ates
the
elim
inat
ion
for
conc
iliat
ed fi
nanc
ial s
tate
men
ts fo
r In
vest
men
t com
pani
es a
nd s
ubsi
diar
ies.
-An
nual
impr
ovem
ents
to IF
RS
2014
-201
2 Cy
cle.
(b)
New
sta
ndar
ds, a
men
dmen
ts a
nd in
terp
reta
tions
not
yet
ado
pted
-IF
RS
9 Fi
nanc
ial I
nstr
umen
ts: I
FRS
9 ad
dres
ses
the
clas
sific
atio
n, m
easu
rem
ent a
nd d
erec
ogni
tion
offin
anci
al a
sset
s an
d fin
anci
al li
abili
ties
and
intr
oduc
es n
ew r
ules
for
hedg
e ac
coun
ting.
The
IASB
mad
e fu
rthe
rch
ange
s to
the
clas
sific
atio
n an
d m
easu
rem
ent r
ules
and
als
o in
trod
uced
a n
ew im
pair
men
t mod
el. T
he n
ewfin
anci
al in
stru
men
ts s
tand
ard
mus
t be
appl
ied
for
finan
cial
yea
rs c
omm
enci
ng o
n or
aft
er 1
Jan
uary
201
8.
-IF
RS
15 R
even
ue fr
om C
ontr
acts
with
Cus
tom
er: T
he IA
SB h
as is
sued
a n
ew s
tand
ard
for
the
reco
gniti
on o
fre
venu
e. T
his
will
rep
lace
IAS
18 w
hich
cov
ers
cont
ract
s fo
r go
ods
and
serv
ices
and
IAS
11 w
hich
cov
ers
cons
truc
tion
cont
ract
s. T
he n
ew s
tand
ard
is b
ased
on
the
prin
cipl
e th
at r
even
ue is
rec
ogni
zed
whe
n co
ntro
l of a
good
or
serv
ice
tran
sfer
s to
a c
usto
mer
– s
o th
e no
tion
of c
ontr
ol r
epla
ces
the
exis
ting
notio
n of
ris
ks a
ndre
war
ds. T
he s
tand
ard
perm
its a
mod
ified
ret
rosp
ectiv
e ap
proa
ch fo
r th
e ad
optio
n. T
he s
tand
ard
shou
ld b
ead
opte
d m
anda
tory
for
finan
cial
yea
rs c
omm
enci
ng o
n or
aft
er 1
Jan
uary
201
8.
-IF
RS
(16
) “Le
ases
” m
ust b
e ap
plie
d fo
r fin
anci
al y
ears
com
men
cing
on
1 Ja
nuar
y 20
19, t
hat w
ill r
epla
ce IA
S(1
7)“L
ease
s” w
hich
set
s ou
t the
pri
ncip
les
for
the
reco
gniti
on, m
easu
rem
ent,
pres
enta
tion
and
disc
losu
re o
fle
ases
.
-IA
S (1
2) “
Inco
me
Tax”
mus
t be
appl
ied
for
finan
cial
yea
rs c
omm
enci
ng o
n 1
Janu
ary
2017
. Add
ress
es th
em
easu
rem
ents
and
rec
ogni
tion
for
diffe
red
tax
asse
ts.
-IA
S (7
) “St
atem
ent o
f cas
h flo
w”
mus
t be
appl
ied
for
finan
cial
yea
rs c
omm
enci
ng o
n 1
Janu
ary
2017
.Ad
dres
ses
the
addi
tiona
l dis
clos
ure
rega
rdin
g th
e ch
ange
in li
abili
ties
resu
lting
from
fina
ncin
g ac
tiviti
es.
The
cons
olid
ated
fina
ncia
l sta
tem
ents
incl
ude
the
finan
cial
sta
tem
ents
of t
he B
ank
and
the
who
lly o
wne
d su
bsid
iary
com
pani
es c
ontr
olle
d by
it. C
ontr
ol e
xist
s w
hen
the
Ban
k ha
s th
e ab
ility
to c
ontr
ol th
e fin
anci
al a
nd
oper
atin
g po
licie
s of
the
subs
idia
ry c
ompa
nies
in o
rder
to a
chie
ve fi
nanc
ial b
enefi
ts o
ut o
f the
ir o
pera
tions
. All
inte
r-co
mpa
ny tr
ansa
ctio
ns, b
alan
ces,
rev
enue
s an
d ex
pens
es b
etw
een
the
Ban
k an
d its
sub
sidi
arie
s ar
e el
imin
ated
, as
wel
l as
betw
een
the
subs
idia
ries
them
selv
es.
The
cons
olid
ated
fina
ncia
l sta
tem
ents
con
tain
s th
e ba
nks
finan
cial
sta
tem
ent a
nd it
s fo
llow
ing
subs
idia
ries
:
*Jo
rdan
Com
pany
for
Fact
orin
g w
as e
stab
lishe
d on
21
Dec
embe
r 20
11 a
nd h
as n
ot c
omm
ence
d its
ope
ratio
nsas
of t
he d
ate
of th
ese
cons
olid
ated
fina
ncia
l sta
tem
ents
.
* *
The
ban
k ac
quir
ed %
93,2
75 o
f Jor
dan
Trad
e Fa
cilit
ies
com
pany
whi
ch o
wns
%10
0 of
Tra
de F
acili
ties
for
Fina
nce
Leas
ing
Com
pany
dur
ing
the
year
201
6, th
roug
h its
sub
sidi
ary
(Tam
keen
Lea
sing
Com
pany
),th
roug
h a
purc
hase
of 1
5,39
0,38
5 sh
ares
with
1JD
par
val
ue. T
he a
cqui
sitio
n co
st w
as J
D 2
0,77
4,62
0 an
d t
he fa
ir v
alue
of n
et a
sset
s am
ount
ed to
JD
19,
344,
022
at th
e da
te o
f acq
uisi
tion,
whi
ch r
aise
d a
good
will
amou
nted
to J
D 1
,430
,598
dis
clos
ed u
nder
inta
ngib
le a
sset
s.
The
finan
cial
sta
tem
ents
of t
he s
ubsi
diar
ies
are
prep
ared
usi
ng th
e sa
me
acco
untin
g po
licie
s ad
opte
d by
th
e B
ank.
Cha
nges
are
mad
e to
the
acco
untin
g po
licie
s of
sub
sidi
arie
s, w
hen
nece
ssar
y, to
alig
n th
em w
ith
acco
untin
g po
licie
s ad
opte
d by
the
Ban
k
The
bank
dir
ect a
nd in
dire
ct in
vest
emen
ts in
trad
e fa
cilit
ies
for
finan
ce le
asin
g is
%94
,667
as o
f 3
1 D
ecem
ber
2016
.
The
finan
cial
sta
tem
ents
of t
he s
ubsi
diar
ies
are
prep
ared
usi
ng th
e sa
me
acco
untin
g po
licie
s ad
opte
d by
th
e B
ank.
Cha
nges
are
mad
e to
the
acco
untin
g po
licie
s of
sub
sidi
arie
s, w
hen
nece
ssar
y, to
alig
n th
em w
ith a
ccou
ntin
g po
licie
s ad
opte
d by
the
Ban
k.
Subs
idia
ries
are
inve
stee
s co
ntro
lled
by th
e B
ank.
The
fina
ncia
l sta
tem
ents
of t
he s
ubsi
diar
ies
are
incl
uded
in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
from
the
date
the
Ban
k ob
tain
s co
ntro
l of t
he in
vest
ee a
nd c
ease
s w
hen
the
Ban
k lo
ses
cont
rol o
f the
inve
stee
.
Non
-con
trol
ling
inte
rest
rep
rese
nts
the
port
ion
of n
et p
rofit
or
loss
and
net
ass
ets
not o
wne
d di
rect
ly
or in
dire
ctly
by
the
Ban
k in
its
subs
idia
ries
and
are
pre
sent
ed in
the
cons
olid
ated
sta
tem
ent o
f inc
ome
and
with
in e
quity
in th
e co
nsol
idat
ed s
tate
men
t of fi
nanc
ial p
ositi
on s
epar
atel
y fr
om th
e eq
uity
att
ribu
tabl
e to
the
shar
ehol
ders
of t
he B
ank.
Jord
ania
n Co
mpa
ny fo
r Fa
ctor
ing
*
Fina
ncia
l se
curi
ties
bro
kera
ge
Leas
e fin
anci
nM
anag
emen
t an
d op
erat
ion
of
bond
ed s
tore
s
Fact
orin
g re
ceiv
able
s
90 94
5,00
0,00
0
10,0
00,0
00
3,00
0,00
0
30,0
00
2010
2011
Jord
an T
rade
Fac
ilitie
s **
Prov
idin
g lo
ans
and
faci
litie
s16
,500
,000
94.7
2016
Trad
e Fa
cilit
ies
for
finan
ce
leas
ing
**Le
ase
fina
ncin
g2,
000,
000
94.7
2016
An
nual
Rep
ort
34th
A bu
sine
ss s
egm
ent i
s a
grou
p of
ass
ets
or o
pera
tions
join
tly e
ngag
ed in
pro
vidi
ng a
n in
divi
dual
pro
duct
or
serv
ice
and
a g
roup
of r
elat
ed p
rodu
cts
or s
ervi
ces
subj
ect t
o ri
sks
and
retu
rns
diffe
rent
from
thos
e of
oth
er
busi
ness
seg
men
ts. I
t is
mea
sure
d ac
cord
ing
to th
e re
port
s us
ed b
y th
e G
ener
al M
anag
er o
r ot
her
key
deci
sion
mak
ers
at th
e B
ank.
A ge
ogra
phic
al s
egm
ent i
s a
dist
ingu
isha
ble
com
pone
nt o
f an
entit
y en
gage
d in
pro
vidi
ng p
rodu
cts
or s
ervi
ces
with
in a
par
ticul
ar e
cono
mic
env
iron
men
t sub
ject
to r
isks
and
ret
urns
diff
eren
t fro
m th
ose
of c
ompo
nent
s op
erat
ing
in o
ther
eco
nom
ic e
nvir
onm
ents
.
It is
the
finan
cial
ass
ets
held
by
the
Ban
k fo
r th
e pu
rpos
e of
trad
ing
in th
e ne
ar fu
ture
and
ach
ievi
ng g
ains
from
th
e flu
ctua
tions
in m
arke
t pri
ces
in th
e sh
ort t
erm
or
trad
ing
mar
gins
.
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
profi
t or
loss
are
initi
ally
sta
ted
at fa
ir v
alue
at a
cqui
sitio
n da
te (p
urch
ase
cost
s ar
e re
cord
ed a
t the
con
solid
ated
sta
tem
ent o
f inc
ome
upon
acq
uisi
tion)
and
sub
sequ
ently
m
easu
red
at fa
ir v
alue
. Mor
eove
r, c
hang
es in
fair
val
ue a
re r
ecor
ded
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e in
clud
ing
the
chan
ge in
fair
val
ue r
esul
ting
from
tran
slat
ion
of n
on-m
onet
ary
asse
ts s
tate
d at
fore
ign
curr
ency
. G
ains
or
loss
es r
esul
ting
from
the
sale
of t
hese
fina
ncia
l ass
ets
are
take
n to
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Div
iden
ds a
nd in
tere
sts
from
thes
e fin
anci
al a
sset
s ar
e re
cord
ed in
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
It is
not
allo
wed
to r
ecla
ssify
any
fina
ncia
l ass
ets
to /
from
this
cat
egor
y ex
cept
for
the
case
s sp
ecifi
ed in
In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds.
It is
not
allo
wed
to c
lass
ify a
ny fi
nanc
ial a
sset
s th
at d
o no
t hav
e pr
ices
in a
ctiv
e m
arke
ts a
nd a
ctiv
e d
ealin
gs in
this
item
.
Rep
rese
nts
finan
cial
ass
ets
whi
ch h
ave
fixed
or
agre
ed p
aym
ents
whi
ch th
e ba
nk s
ubm
itted
in th
e fir
st p
lace
an
d th
ese
finan
cial
ass
ets
do n
ot h
ave
quot
ed p
rice
s in
act
ive
mar
kets
.
Dir
ect c
redi
t fac
ilitie
s ar
e re
cord
ed a
t am
ortiz
ed c
ost a
fter
ded
uctin
g th
e pr
ovis
ion
for
the
dire
ct c
redi
t fac
ilitie
s a
nd in
tere
st a
nd c
omm
issi
ons
in s
uspe
nse.
A pr
ovis
ion
for
the
impa
irm
ent i
n di
rect
cre
dit f
acili
ties
is r
ecog
nize
d w
hen
it is
obv
ious
that
the
finan
cial
ass
ets
of th
e B
ank
cann
ot b
e re
cove
red,
ther
e is
an
obje
ctiv
e ev
iden
ce o
f the
exi
sten
ce o
f an
even
t neg
ativ
ely
affe
ctin
g th
e fu
ture
cas
h flo
ws
of th
e di
rect
cre
dit f
acili
ties,
and
the
impa
irm
ent a
mou
nt c
an b
e es
timat
ed.
The
prov
isio
n is
take
n to
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Inte
rest
and
com
mis
sion
s on
non
-per
form
ing
cred
it fa
cilit
ies
are
susp
ende
d in
acc
orda
nce
with
the
regu
latio
ns o
f the
Cen
tral
Ban
k of
Jor
dan.
Impa
ired
cre
dit f
acili
ties,
for
whi
ch s
peci
fic p
rovi
sion
s ha
ve b
een
take
n, a
re w
ritt
en o
ff by
cha
rgin
g th
e pr
ovis
ion
aft
er a
ll ef
fort
s ha
ve b
een
mad
e to
rec
over
the
asse
ts. A
ny s
urpl
us in
the
prov
isio
ns is
take
n to
the
cons
olid
ated
st
atem
ent o
f inc
ome,
whi
le d
ebt r
ecov
erie
s ar
e ta
ken
to in
com
e.
Thos
e fin
anci
al a
sset
s re
pres
ent t
he in
vest
men
ts in
equ
ity in
stru
men
ts h
eld
for
long
term
.
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
are
initi
ally
sta
ted
at fa
ir v
alue
plu
s tr
ansa
ctio
n co
sts.
Sub
sequ
ently
, the
y ar
e m
easu
red
at fa
ir v
alue
with
gai
ns a
nd lo
sses
ari
sing
from
ch
ange
s in
fair
val
ue r
ecog
nize
d in
the
cons
olid
ated
sta
tem
ent o
f oth
er c
ompr
ehen
sive
inco
me
and
with
in o
wne
r's
equi
ty, i
nclu
ding
the
chan
ges
in fa
ir v
alue
res
ultin
g fr
om tr
ansl
atio
n of
non
-mon
etar
y as
sets
sta
ted
at fo
reig
n cu
rren
cy. G
ain
or lo
ss fr
om th
e sa
le o
f the
se in
vest
men
ts s
houl
d be
rec
ogni
zed
in th
e co
nsol
idat
ed s
tate
men
t of c
ompr
ehen
sive
inco
me
and
with
in o
wne
r's
equi
ty, a
nd th
e ba
lanc
e of
th
e ev
alua
tion
rese
rve
for
thes
e as
sets
sho
uld
be tr
ansf
erre
d di
rect
ly to
the
reta
ined
ear
ning
s no
t to
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
No
impa
irm
ent t
estin
g is
req
uire
d fo
r th
ose
asse
ts.
Div
iden
ds a
re r
ecor
ded
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e.
Fina
ncia
l ass
ets
at a
mor
tized
cos
t are
the
finan
cial
ass
ets
whi
ch th
e B
ank'
s m
anag
emen
t int
ends
acc
ordi
ng to
its b
usin
ess
mod
el to
hol
d fo
r th
e pu
rpos
e of
col
lect
ing
the
cont
ract
ual c
ash
flow
s w
hich
com
pris
e th
eco
ntra
ctua
l cas
h flo
ws
that
are
sol
ely
paym
ents
of p
rinc
ipal
and
inte
rest
on
the
prin
cipa
l out
stan
ding
Fina
ncia
l ass
ets
are
reco
rded
at c
ost u
pon
purc
hase
plu
s ac
quis
ition
exp
ense
s. M
oreo
ver,
the
issu
e pr
emiu
m \
disc
ount
is a
mor
tized
usi
ng th
e ef
fect
ive
inte
rest
rat
e m
etho
d, a
nd r
ecor
ded
to in
tere
st a
ccou
nt. P
rovi
sion
s as
soci
ated
with
the
decl
ine
in v
alue
of t
hese
inve
stm
ents
lead
ing
to th
e in
abili
ty to
rec
over
the
inve
stm
ent o
r pa
rts
ther
eof a
re d
educ
ted.
Any
impa
irm
ent i
s re
gist
ered
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e an
d sh
ould
be
pre
sent
ed s
ubse
quen
tly a
t am
ortiz
ed c
ost l
ess
any
impa
irm
ent l
osse
s.
The
amou
nt o
f the
impa
irm
ent l
oss
reco
gniz
ed is
the
diffe
renc
e be
twee
n th
e as
set's
car
ryin
g am
ount
and
the
pres
ent v
alue
of e
stim
ated
futu
re c
ash
flow
s di
scou
nted
at t
he o
rigi
nal e
ffect
ive
inte
rest
rat
e
It is
not
allo
wed
to r
ecla
ssify
any
fina
ncia
l ass
ets
from
/ to
this
cat
egor
y ex
cept
for
cert
ain
case
s sp
ecifi
ed a
the
Inte
rnat
iona
l Fin
anci
al R
epor
ting
Stan
dard
s (a
nd in
the
case
of s
ellin
g th
ose
asse
ts b
efor
e its
mat
urity
da
te, t
he r
esul
ts s
houl
d be
rec
orde
d in
a s
epar
ate
acco
unt i
n th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e,
disc
losu
res
shou
ld b
e m
ade
in a
ccor
danc
e to
the
requ
irem
ents
of I
nter
natio
nal F
inan
cial
Rep
ortin
g St
anda
rds)
.
Fair
val
ue r
epre
sent
s th
e cl
osin
g m
arke
t pri
ce (A
cqui
sitio
n of
ass
ets/
Sal
e of
liab
ilitie
s) o
f fina
ncia
l ass
ets
and
der
ivat
ives
on
the
date
of t
he c
onso
lidat
ed fi
nanc
ial s
tate
men
ts. I
n ca
se th
e de
clar
ed m
arke
t pri
ces
do
not e
xist
, act
ive
trad
ing
of s
ome
finan
cial
ass
ets
and
deri
vativ
es is
not
ava
ilabl
e, o
r th
e m
arke
t is
inac
tive,
fa
ir v
alue
is e
stim
ated
by
one
of s
ever
al m
etho
ds in
clud
ing
the
follo
win
g:
-Co
mpa
riso
n w
ith th
e fa
ir v
alue
of a
noth
er fi
nanc
ial a
sset
with
sim
ilar
term
s an
d co
nditi
ons.
-An
alys
is o
f the
est
imat
ed fu
ture
cas
h flo
ws
and
disc
ount
ed c
ash
flow
s at
cur
rent
rat
es a
pplic
able
for
item
sw
ith s
imila
r te
rms
and
risk
cha
ract
eris
tics.
Eval
uatio
n of
long
term
ass
ets
and
liabi
litie
s th
at b
ears
no
inte
rest
in a
ccor
danc
e to
dis
coun
ted
cash
flow
s us
ing
effe
ctiv
e in
tere
st r
ate,
pre
miu
ms
and
disc
ount
ed a
re a
mor
tized
with
in in
tere
st r
even
ue o
r ex
pens
e in
th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e.
The
eval
uatio
n m
etho
ds a
im to
pro
vide
a fa
ir v
alue
refl
ectin
g th
e ex
pect
atio
ns o
f the
mar
ket,
and
take
into
co
nsid
erat
ion
mar
ket f
acto
rs, r
isks
and
exp
ecte
d be
nefit
s, a
t the
tim
e of
eva
luat
ion
of th
e fin
anci
al in
stru
men
ts.
In c
ase
the
fair
val
ue o
f an
inve
stm
ent c
anno
t be
mea
sure
d re
liabl
y, it
is s
tate
d at
cos
t les
s an
y im
pair
men
t
An
nual
Rep
ort
34th
An
nual
Rep
ort
34th
Inte
rest
inco
me
is r
ealiz
ed a
nd e
xpen
ses
are
reco
gniz
ed u
sing
the
effe
ctiv
e in
tere
st r
ate
met
hod,
exc
ept f
or
inte
rest
and
com
mis
sion
on
non-
perf
orm
ing
loan
s w
hich
are
not
rec
ogni
zed
as r
even
ue b
ut r
ecor
ded
in th
e in
tere
st a
nd c
omm
issi
on in
sus
pens
e ac
coun
t unt
il th
ey a
re r
ecei
ved
in c
ash.
Expe
nses
are
rec
ogni
zed
on th
e ac
crua
l bas
is.
Com
mis
sion
is r
ecor
ded
as r
even
ue w
hen
the
rela
ted
serv
ices
are
pro
vide
d.
Div
iden
ds a
re r
ecor
ded
whe
n re
aliz
ed (d
ecid
ed u
pon
by th
e G
ener
al A
ssem
bly
of S
hare
hold
ers)
.
Fina
ncia
l ass
ets
are
reco
gniz
ed o
n th
e tr
adin
g da
te w
hich
is th
e da
te th
e B
ank
com
mits
its
elf t
o pu
rcha
se o
r se
ll th
e fin
anci
al a
sset
s
For
hedg
e ac
coun
ting
purp
oses
, fina
ncia
l der
ivat
ives
are
sta
ted
at fa
ir v
alue
. H
edge
s ar
e cl
assi
fied
as fo
llow
s:
-Fa
ir v
alue
hed
ge:
Hed
ge fo
r th
e ch
ange
in th
e fa
ir v
alue
exp
osur
es o
f the
Ban
k's
asse
ts a
nd li
abili
ties.
Whe
n th
e co
nditi
ons
of e
ffect
ive
fair
val
ue h
edge
are
met
, the
res
ultin
g ga
in o
r lo
ss fr
om r
e-m
easu
ring
the
fair
val
ue h
edge
is r
ecog
nize
d in
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Whe
n th
e co
nditi
ons
of e
ffect
ive
port
folio
hed
ge a
re m
et, t
he g
ain
or lo
ss r
esul
ting
from
the
reva
luat
ion
of
the
hedg
ing
inst
rum
ent a
t fai
r va
lue
as w
ell a
s th
e ch
ange
in th
e fa
ir v
alue
of t
he a
sset
s or
liab
ilitie
s po
rtfo
lio
are
reco
rded
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e fo
r th
e sa
me
peri
od.
-Ca
sh fl
ow h
edge
:H
edge
for
the
chan
ge in
the
curr
ent a
nd e
xpec
ted
cash
flow
s ex
posu
res
of th
e B
ank'
s as
sets
and
liab
ilitie
s
Whe
n th
e co
nditi
ons
of e
ffect
ive
cash
flow
hed
ge a
re m
et, t
he g
ain
or lo
ss o
f the
hed
ging
inst
rum
ents
isre
cogn
ized
in th
e co
nsol
idat
ed s
tate
men
t of o
ther
com
preh
ensi
ve in
com
e in
ow
ners
' equ
ity. S
uch
gain
or
loss
is
tran
sfer
red
to th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e in
the
peri
od in
whi
ch th
e he
dge
tran
sact
ion
impa
cts
the
cons
olid
ated
sta
tem
ent o
f inc
ome
-H
edge
for
net i
nves
tmen
t in
fore
ign
entit
ies:
Whe
n th
e co
nditi
ons
of th
e he
dge
for
net i
nves
tmen
t in
fore
ign
entit
ies
are
met
, fai
r va
lue
is m
easu
red
for
the
hedg
ing
inst
rum
ent o
f the
hed
ged
net a
sset
s. In
cas
e of
an
effe
ctiv
e re
latio
nshi
p, th
e ef
fect
ive
port
ion
of th
e lo
ss o
r pr
ofit r
elat
ed to
the
hedg
ing
inst
rum
ent i
s re
cogn
ized
in th
e co
nsol
idat
ed s
tate
men
t of o
ther
com
preh
ensi
ve in
com
e an
d in
ow
ner'
s eq
uity
. The
inef
fect
ive
port
ion
is r
ecog
nize
d in
the
cons
olid
ated
st
atem
ent o
f inc
ome.
The
effe
ctiv
e po
rtio
n is
rec
orde
d in
the
cons
olid
ated
sta
tem
ent o
f inc
ome
whe
n th
e in
vest
men
t in
fore
ign
entit
ies
is s
old.
Whe
n th
e co
nditi
ons
of th
e ef
fect
ive
hedg
e do
not
app
ly, g
ain
or lo
ss r
esul
ting
from
the
chan
ge in
the
fair
val
ue
of th
e he
dgin
g in
stru
men
t is
reco
rded
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e in
the
sam
e pe
riod
.
The
fair
val
ue o
f fina
ncia
l der
ivat
ives
for
trad
ing
such
as
forw
ard
fore
ign
curr
ency
con
trac
ts, f
utur
e in
tere
st r
ate
cont
ract
s, s
wap
agr
eem
ents
, and
fore
ign
curr
ency
opt
ions
is r
ecor
ded
in th
e co
nsol
idat
ed s
tate
men
t of fi
nanc
ial
posi
tion
unde
r ot
her
asse
ts o
r ot
her
liabi
litie
s as
the
case
may
be.
Fai
r va
lue
is m
easu
red
acco
rdin
g to
the
prev
ailin
g m
arke
t pri
ces,
and
if th
ey a
re n
ot a
vaila
ble,
the
mea
sure
men
t met
hod
shou
ld b
e di
sclo
sed.
The
ch
ange
in th
eir
fair
val
ue is
rec
ogni
zed
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e.
Asse
ts s
old
with
a s
imul
tane
ous
com
mitm
ent t
o re
purc
hase
them
at a
futu
re d
ate
cont
inue
to b
e re
cogn
ized
in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
as
a re
sult
of th
e B
ank'
s co
ntin
uous
con
trol
ove
r th
ese
asse
ts a
nd a
s th
ere
late
d ri
sks
and
bene
fits
are
tran
sfer
red
to th
e B
ank
upon
occ
urre
nce.
The
y al
so c
ontin
ue to
be
mea
sure
d in
acco
rdan
ce w
ith th
e ad
opte
d ac
coun
ting
polic
ies.
Am
ount
s re
ceiv
ed a
gain
st th
ese
cont
ract
s ar
e re
cord
ed w
ithin
lia
bilit
ies
unde
r bo
rrow
ed fu
nds.
The
diff
eren
ce b
etw
een
the
sale
pri
ce a
nd th
e re
purc
hase
pri
ce is
rec
ogni
zed
as a
n in
tere
st e
xpen
se a
mor
tized
ove
r th
e co
ntra
ct p
erio
d us
ing
the
effe
ctiv
e in
tere
st r
ate
met
hod.
Purc
hase
d as
sets
with
cor
resp
ondi
ng c
omm
itmen
t to
sell
at a
spe
cific
futu
re d
ate
are
not r
ecog
nize
d in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
bec
ause
the
Ban
k ha
s no
con
trol
ove
r su
ch a
sset
s an
d th
e re
late
d ri
sks
and
bene
fits
are
not t
rans
ferr
ed to
the
Ban
k up
on o
ccur
renc
e. P
aym
ents
rel
ated
to th
ese
cont
ract
s ar
e re
cord
edun
der
depo
sits
with
ban
ks a
nd o
ther
fina
ncia
l ins
titut
ions
or
loan
s an
d ad
vanc
es in
acc
orda
nce
with
the
natu
reof
eac
h ca
se. T
he d
iffer
ence
bet
wee
n th
e pu
rcha
se p
rice
and
res
ale
pric
e is
rec
orde
d as
inte
rest
rev
enue
am
ortiz
ed o
ver
the
life
of th
e co
ntra
ct u
sing
the
effe
ctiv
e in
tere
st r
ate
met
hod.
Asse
ts s
eize
d by
the
Ban
k ar
e sh
own
unde
r "o
ther
ass
ets"
at t
he a
cqui
sitio
n va
lue
or fa
ir v
alue
, whi
chev
er is
lo
wer
. As
of th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts d
ate,
thes
e as
sets
are
rev
alue
d in
divi
dual
ly a
t fai
r va
lue.
Any
decl
ine
in th
eir
mar
ket v
alue
is ta
ken
to th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e w
here
as a
ny s
uch
incr
ease
is n
ot
reco
gniz
ed. A
sub
sequ
ent i
ncre
ase
is ta
ken
to th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e to
the
exte
nt it
doe
s no
t ex
ceed
the
prev
ious
ly r
ecor
ded
impa
irm
ent.
Prov
isio
n is
pro
vide
d ag
ains
t siz
ed a
sset
s fo
r m
ore
than
four
yea
rs a
ccor
ding
to c
entr
al b
ank
of J
orda
n re
gula
tion
A.Go
odw
illTh
e go
odw
ill r
epre
sent
the
posi
tive
diffe
renc
e be
twee
n th
e co
st o
f acq
uisi
tion
or p
urch
ase
pric
e of
the
asso
ciat
eor
sub
sidi
ary
and
the
com
pany
’s n
et a
sset
fair
val
ue a
t the
dat
e of
acq
uisi
tion.
The
good
will
res
ultin
g fr
om in
vest
men
t in
subs
idia
ry is
dis
clos
ed in
a s
epar
ate
note
as
inta
ngib
le a
sset
,as
for
good
will
res
ultin
g fr
om in
vest
men
t in
asso
ciat
e it’
s di
sclo
sed
as p
art o
f inv
estm
ent a
ccou
nt a
nd it
get
sim
pair
ed o
ver
the
peri
od, w
hen
its v
alue
goe
s do
wn.
Impa
irm
ent t
est f
or g
oodw
ill is
per
form
ed a
t the
dat
e of
eac
h fin
anci
al s
tate
men
t, w
hich
is th
e re
sult
ofa
decr
ease
in c
ash
flow
gen
erat
ed b
y go
odw
ill r
ecov
erab
le v
alue
at t
he d
ate
of th
e fin
anci
al c
ompa
red
toth
e co
st o
f goo
dwill
rec
orde
d in
the
book
s, in
suc
h ca
ses
the
good
will
impa
irm
ent a
mou
nt is
dis
clos
ed in
the
Inco
me
stat
emen
t.
An
nual
Rep
ort
34th
B.O
ther
inta
ngib
le a
sset
sIn
tang
ible
ass
ets
purc
hase
d in
an
acqu
isiti
on a
re s
tate
d at
fair
val
ue a
t the
dat
e of
acq
uisi
tion.
Inta
ngib
le a
sset
spu
rcha
sed
othe
r th
an th
roug
h ac
quis
ition
are
rec
orde
d at
cos
t.
Inta
ngib
le a
sset
s ar
e to
be
clas
sifie
d on
the
basi
s of
eith
er d
efini
te o
r in
defin
ite u
sefu
l life
. Int
angi
ble
asse
ts w
ith
defin
ite u
sefu
l eco
nom
ic li
ves
are
amor
tized
ove
r th
eir
usef
ul li
ves
and
reco
rded
as
an e
xpen
se in
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Inta
ngib
le a
sset
s w
ith in
defin
ite li
ves
are
revi
ewed
for
impa
irm
ent a
s of
the
cons
olid
ated
fina
ncia
l s
tate
men
ts d
ate,
and
impa
irm
ent l
oss
is tr
eate
d in
the
cons
olid
ated
sta
tem
ent o
f inc
ome
as a
n ex
pens
e fo
r th
e pe
riod
.
No
capi
taliz
atio
n of
inte
rnal
ly g
ener
ated
inta
ngib
le a
sset
s re
sulti
ng fr
om th
e B
ank'
s op
erat
ions
is m
ade.
Th
ey a
re r
athe
r re
cord
ed a
s an
exp
ense
in th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e fo
r th
e pe
riod
.
Any
indi
catio
ns o
f im
pair
men
t in
the
valu
e of
inta
ngib
le a
sset
s as
of t
he c
onso
lidat
ed fi
nanc
ial s
tate
men
ts d
ate
are
revi
ewed
. Fur
ther
mor
e, th
e es
timat
ed u
sefu
l liv
es o
f the
impa
ired
inta
ngib
le a
sset
s ar
e re
asse
ssed
, a
nd a
ny a
djus
tmen
t is
mad
e in
the
subs
eque
nt p
erio
d.
Soft
war
e an
d co
mpu
ter
prog
ram
s ar
e am
ortiz
ed o
ver
thei
r es
timat
ed u
sefu
l eco
nom
ic li
ves
at a
rat
e of
%20
ann
ually
.
Tran
sact
ions
in fo
reig
n cu
rren
cies
dur
ing
the
year
are
rec
orde
d at
the
exch
ange
rat
es p
reva
iling
at t
he d
ate
of th
e tr
ansa
ctio
n.
Fina
ncia
l ass
ets
and
finan
cial
liab
ilitie
s de
nom
inat
ed in
fore
ign
curr
enci
es a
re tr
ansl
ated
at t
he a
vera
ge
rate
s pr
evai
ling
on th
e co
nsol
idat
ed s
tate
men
t of fi
nanc
ial p
ositi
on d
ate
and
decl
ared
by
the
Cent
ral B
ank
of J
orda
n.
Non
-mon
etar
y as
sets
and
liab
ilitie
s de
nom
inat
ed in
fore
ign
curr
enci
es a
nd r
ecor
ded
at fa
ir v
alue
are
tran
slat
ed o
n th
e da
te w
hen
thei
r fa
ir v
alue
is d
eter
min
ed.
Gai
ns o
r lo
sses
res
ultin
g fr
om fo
reig
n cu
rren
cy tr
ansl
atio
n ar
e re
cord
ed in
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Tran
slat
ion
diffe
renc
es o
n no
n-m
onet
ary
asse
ts a
nd li
abili
ties
deno
min
ated
in fo
reig
n cu
rren
cies
are
rec
orde
d as
par
t of t
he c
hang
e in
fair
val
ue.
Cash
and
cas
h eq
uiva
lent
s co
mpr
ise
cash
bal
ance
s w
ith th
e Ce
ntra
l Ban
k of
Jor
dan
and
bala
nces
with
ban
ks a
ndfin
anci
al in
stitu
tions
mat
urin
g w
ithin
thre
e m
onth
s fr
om p
urch
ase
date
, les
s ba
lanc
es d
ue to
ban
ks a
nd fi
nanc
ial
inst
itutio
ns m
atur
ing
with
in th
ree
mon
ths
and
rest
rict
ed fu
nds.
Prep
arat
ion
of th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts a
nd th
e ap
plic
atio
n of
the
acco
untin
g po
licie
s re
quir
e th
eB
ank'
s m
anag
emen
t to
perf
orm
ass
essm
ents
and
ass
umpt
ions
that
affe
ct th
e am
ount
s of
fina
ncia
l ass
ets
and
liabi
litie
s, fa
ir v
alue
res
erve
and
the
disc
losu
re o
f con
tinge
nt li
abili
ties.
Mor
eove
r, th
ese
asse
ssm
ents
and
as
sum
ptio
ns a
ffect
rev
enue
s, e
xpen
ses,
pro
visi
ons,
and
cha
nges
in th
e fa
ir v
alue
sho
wn
with
in th
e co
nsol
idat
ed s
tate
men
t of o
ther
com
preh
ensi
ve in
com
e. In
par
ticul
ar, t
his
requ
ires
the
Ban
k's
man
agem
ent t
o is
sue
sign
ifica
nt ju
dgm
ents
and
ass
umpt
ions
to a
sses
s fu
ture
cas
h flo
w a
mou
nts
and
thei
r tim
ing.
Mor
eove
rth
e sa
id a
sses
smen
ts a
re n
eces
sari
ly b
ased
on
assu
mpt
ions
and
fact
ors
with
var
ying
deg
rees
of c
onsi
dera
tion
and
unce
rtai
nty.
In a
dditi
on, a
ctua
l res
ults
may
diff
er fr
om a
sses
smen
ts d
ue to
the
chan
ges
resu
lting
from
the
cond
ition
s an
d ci
rcum
stan
ces
of th
ose
asse
ssm
ents
in th
e fu
ture
.
A pr
ovis
ion
is s
et a
gain
st th
e la
wsu
its r
aise
d ag
ains
t the
Ban
k. T
his
prov
isio
n is
sub
ject
to a
n ad
equa
te le
gal
stud
y pr
epar
ed b
y th
e B
ank'
s le
gal a
dvis
ors.
Mor
eove
r, th
e st
udy
high
light
s po
tent
ial r
isks
that
the
Ban
k m
ay
enco
unte
r in
the
futu
re. S
uch
lega
l ass
essm
ents
are
rev
iew
ed p
erio
dica
lly.
A pr
ovis
ion
for
perf
orm
ing
and
non-
perf
orm
ing
loan
s is
take
n on
the
base
s an
d es
timat
es a
ppro
ved
by th
e B
ank'
s m
anag
emen
t in
conf
orm
ity w
ith In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds
(IFR
S). T
he o
utco
me
of
thes
e ba
ses
and
estim
ates
is c
ompa
red
agai
nst t
he a
dequ
acy
of th
e pr
ovis
ions
as
per
the
Cent
ral B
ank
of
Jord
an's
inst
ruct
ions
. The
str
icte
st o
utco
me
that
con
form
s to
Inte
rnat
iona
l Fin
anci
al R
epor
ting
Stan
dard
s is
us
ed fo
r de
term
inin
g th
e pr
ovis
ion.
Impa
irm
ent l
oss
is b
ooke
d af
ter
a su
ffici
ent a
nd r
ecen
t eva
luat
ion
of th
e as
sets
sei
zed
by th
e B
ank
has
been
cond
ucte
d by
app
rove
d su
rvey
ors.
The
impa
irm
ent l
oss
is r
evie
wed
per
iodi
cally
.
Man
agem
ent p
erio
dica
lly r
eass
esse
s th
e ec
onom
ic u
sefu
l liv
es o
f tan
gibl
e an
d in
tang
ible
ass
ets
for
the
purp
ose
of c
alcu
latin
g an
nual
dep
reci
atio
n an
d am
ortiz
atio
n ba
sed
on th
e ge
nera
l con
ditio
n of
thes
e as
sets
an
d th
e as
sess
men
t of t
heir
use
ful e
cono
mic
live
s ex
pect
ed in
the
futu
re. I
mpa
irm
ent l
oss
(if a
ny) i
s ta
ken
to
the
cons
olid
ated
sta
tem
ent o
f inc
ome.
Man
agem
ent f
requ
ently
rev
iew
s th
e fin
anci
al a
sset
s st
ated
at c
ost t
o es
timat
e an
y de
clin
e in
thei
r va
lue.
Impa
irm
ent l
oss
(if a
ny) i
s ta
ken
to th
e co
nsol
idat
ed s
tate
men
t of i
ncom
e as
an
expe
nse
for
the
year
.
Man
agem
ent e
stim
ates
the
impa
irm
ent i
n fa
ir v
alue
whe
n th
e m
arke
t val
ue r
each
es a
cer
tain
lim
it in
dica
tive
of
the
amou
nt o
f im
pair
men
t los
s, w
hich
doe
sn't
confl
ict w
ith th
e In
tern
atio
nal F
inan
cial
Rep
ortin
g St
anda
rds
and
the
inst
ruct
ions
of t
he R
egul
ator
y au
thor
ities
.
Fair
Val
ue H
iera
rchy
:
The
Ban
k de
term
ines
and
dis
clos
es th
e le
vel i
n th
e fa
ir v
alue
hie
rarc
hy in
to w
hich
the
fair
val
ue m
easu
rem
ents
ar
e ca
tego
rize
d in
thei
r en
tiret
y, s
egre
gatin
g fa
ir v
alue
mea
sure
men
ts in
acc
orda
nce
with
the
leve
ls d
efine
d in
IFR
S. D
iffer
entia
ting
betw
een
Leve
l 2 a
nd L
evel
3 fa
ir v
alue
mea
sure
men
ts, i
.e.,
asse
ssin
g w
heth
er in
puts
are
ob
serv
able
and
whe
ther
the
unob
serv
able
inpu
ts a
re s
igni
fican
t, m
ay r
equi
re ju
dgm
ent a
nd a
car
eful
ana
lysi
sof
the
inpu
ts u
sed
to m
easu
re fa
ir v
alue
, inc
ludi
ng c
onsi
dera
tion
of fa
ctor
s sp
ecifi
c to
the
asse
t or
liabi
lity
The
man
agem
ent b
elie
ves
that
the
estim
ates
ado
pted
in th
e pr
epar
atio
n of
the
cons
olid
ated
fina
ncia
lst
atem
ents
are
rea
sona
ble.
This
item
con
sist
s of
the
follo
win
g:
Cash
on
hand
Bal
ance
s w
ith c
entr
al b
anks
Curr
ent a
nd d
eman
d ac
coun
tsTe
rm a
nd n
otic
e de
posi
ts
Stat
utor
y ca
sh r
eser
ve *
10,7
54,1
30
6,15
2,44
9 -
43,6
43,4
38
91,2
50,0
17
-Ex
cept
for
the
stat
utor
y ca
sh r
eser
ve, t
here
are
no
rest
rict
ed b
alan
ces
as o
f 31D
ecem
ber
2016
and
201
5.-
Ther
e ar
e no
bal
ance
s m
atur
ed in
a p
erio
d ex
ceed
ing
thre
e m
onth
s as
of 3
1 D
ecem
ber
2016
and
201
5.
Dep
osit
cert
ifica
te30
,700
,000
8,94
5,79
8
728,
924
22,0
00,0
00
39,5
53,0
69
102,
527,
791
31,3
00,0
00
An
nual
Rep
ort
34th
JDJD
JDJD
JDJD
JDJD
JDJD
JDJD
This
item
con
sist
s of
the
follo
win
g:
Loca
l Ban
ks a
nd F
inan
cial
Inst
itutio
nsFo
reig
n B
anks
and
Fi
nanc
ial I
nstit
utio
nsTo
tal
Tota
l
31 D
ecem
ber
31 D
ecem
ber
31 D
ecem
ber
31 D
ecem
ber
31 D
ecem
ber
31 D
ecem
ber
2016
2015
2016
JD
31 D
ecem
ber
2016
JD
31 D
ecem
ber
2015
2015
2016
2015
Curr
ent a
nd d
eman
d ac
coun
ts
Dep
osit
mat
urin
g w
ithin
th
ree
mon
ths
Tota
l
-N
on-i
nter
est b
eari
ng b
alan
ces
at b
anks
and
fina
ncia
l ins
titut
ions
am
ount
ed to
JD
29,
012,
436
as o
f31
Dec
embe
r 20
16 a
gain
st J
D 2
0,46
4,39
1 as
of 3
1 D
ecem
ber
2015
.
-Th
ere
is n
o re
stri
cted
bal
ance
s as
of 3
1 D
ecem
ber
2016
aga
inst
JD
2,3
83,2
68 a
s of
31
Dec
embe
r 20
15.
Loca
l Ban
ks a
nd
Fina
ncia
l Ins
titut
ions
Fore
ign
Ban
ks a
nd
Fina
ncia
l Ins
titut
ions
Dep
osits
5,50
0,00
0
Ther
e ar
e no
res
tric
ted
depo
sits
as
of 3
1 D
ecem
ber
2016
and
201
5.
Dep
osits
bal
ance
s m
atur
ing
with
in a
per
iod
exce
edin
g th
ree
mon
ths
amou
nted
to
JD 5
,500
,000
as
of 3
1 D
ecem
ber
2016
aga
inst
JD
5,0
00,0
00 a
s of
31
Dec
embe
r 20
15.
This
item
con
sist
s of
the
follo
win
g:
Com
pani
es s
hare
sIn
vest
men
t fun
ds
2,08
9,00
0
39,1
16
2,12
8,11
6
2,51
7,28
1
39,1
16
2,55
6,39
7
This
item
con
sist
s of
the
follo
win
g:
This
item
con
sist
s of
the
follo
win
g:
Quo
ted
shar
es
Unq
uote
d sh
ares
*
*Th
e fa
ir v
alue
of t
he u
nquo
ted
shar
es h
as b
een
valu
ed u
sing
the
net b
ook
valu
e m
etho
d w
hich
is c
onsi
dere
dth
e be
st v
alua
tion
met
hod
for
such
inve
stm
ents
.
Rea
lized
loss
es o
n th
e sa
le o
f sha
res
at fa
ir v
alue
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
amou
nted
to J
D 6
72,0
71 fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
16 a
gain
st J
D 3
4,04
7 fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
15,
whi
ch w
as d
irec
tly
reco
rded
to r
etai
ned
earn
ings
in o
wne
r's
equi
ty.
Cas
h di
vide
nds
on fi
nanc
ial a
sset
s am
ount
ed to
JD
1,5
54,5
92 fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
16
agai
nst J
D 9
62,4
35 fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
15.
Quo
ted
finan
cial
ass
ets:
Gov
ernm
enta
l bon
ds *
Gov
ernm
enta
l bon
ds g
uara
ntee
d by
the
gove
rnm
ent
Unq
uote
d fin
anci
al a
sset
s:
Com
pani
es b
onds
and
deb
entu
res
Tota
l fina
ncia
l ass
ets
at a
mor
tized
cos
t
Bon
ds a
nd b
ills
anal
ysis
:
Fixe
d re
turn
Floa
ting
rate
Anal
ysis
bon
ds a
nd tr
easu
ry b
ills
-6,
359,
996
83,1
29,7
6782
,075
,105
88,4
07,9
7510
7,72
7,47
9
14,7
93,7
8411
,352
,475
Gov
ernm
enta
l bon
ds16
,942
,111
-
31,7
35,8
95
Tota
l5,
500,
000
5,00
0,00
0
5,00
0,00
0
5,50
0,00
0
5,50
0,00
0
5,00
0,00
0
5,00
0,00
0
Tota
l
Tota
l
Corp
orat
e lo
ans
(Com
pani
es b
onds
and
deb
entu
res)
5,27
8,20
819
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,378
Tota
l
11,3
52,4
75
120,
143,
870
119,
079,
954
98,1
19,9
5411
2,05
4,94
4
22,0
23,9
167,
025,
010
Tota
l
An
nual
Rep
ort
34th
This
item
con
sist
s of
the
follo
win
g:
Indi
vidu
als
(ret
ail)
:
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s *
Cred
it Ca
rds
Rea
l est
ate
loan
s
Com
pani
es
Corp
orat
e:
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s *
Med
ium
and
sm
all e
ntiti
es
Gove
rnm
ent a
nd p
ublic
sec
tor
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s *
Tota
l
Less
: Pro
visi
on fo
r im
pair
men
t in
dire
ct c
redi
t fac
ilitie
s
Inte
rest
in s
uspe
nse
Net
Dir
ect C
redi
t Fac
ilitie
s
7,87
8,53
3
15,9
08,8
06
12,4
39,7
77
94,8
08,1
91
124,
713,
597
79,8
83,1
62
220,
305,
556
12,3
15,3
95
24,2
03-
568,
277,
220
23,3
14,6
96
6,33
2,23
9
538,
630,
285
7,65
8,98
5
10,1
14,2
94
13,2
15,4
33
48,7
18,6
50
117,
991,
221
72,7
11,5
44
206,
238,
290
8,41
5,25
4
485,
063,
671
19,2
77,8
46
11,0
81,5
57
454,
704,
268
The
mov
emen
t on
the
prov
isio
n fo
r im
pair
men
t in
dire
ct c
redi
t fac
ilitie
s w
as a
s fo
llow
s:
Bal
ance
at 1
Jan
uary
Bal
ance
at 1
Jan
uary
Prov
isio
n (s
urpl
us)
Bal
ance
s ge
nera
ted
from
inve
stm
ent i
n su
bsid
iari
es
Char
ge fo
r th
e ye
ar
Use
d du
ring
the
year
(w
ritt
en-o
ff)*
Prov
isio
n (s
urpl
us)
Char
ge fo
r th
e ye
ar
Use
d du
ring
the
year
(w
ritt
en-o
ff)*
Bal
ance
at y
ear
end
Bal
ance
at y
ear
end
4,41
6,99
31,
220,
209
9,86
7,53
53,
773,
109
19,2
77,8
46
4,52
9,39
247
7,00
513
5,25
85,
141,
655
146,
580
(678
,137
)21
3,66
0(5
76,1
48)
(894
,045
)
(199
,601
) -
-
(11,
159)
(210
,760
)
8,89
3,36
41,
019,
077
10,0
81,1
953,
321,
060
23,3
14,6
96
4,97
2,95
36,
775,
559
12,0
16,6
425,
449,
261
29,2
14,4
15
487,
461
(5,5
37,6
18)
1,63
9,24
310
7,40
8(3
,303
,506
)
1,04
3,42
1)17
,732
)3,
788,
350)
(1,7
83,5
60)
(6,6
33,0
63)
4,41
6,99
31,
220,
209
9,86
7,53
53,
773,
109
19,2
77,8
46
*Net
aft
er d
educ
ting
inte
rest
and
com
mis
sion
s re
ceiv
ed in
adv
ance
of J
D 1
8,90
8,60
9 as
of
31 D
ecem
ber
2016
aga
inst
JD
6,8
13,2
31 a
s of
31
Dec
embe
r 20
15.
Non
-per
form
ing
cred
it fa
cilit
ies
amou
nted
to J
D 3
8,50
9,59
2 w
hich
is e
quiv
alen
t to
%6.
8 of
tota
l dir
ect
cred
it fa
cilit
ies
as o
f 31
Dec
embe
r 20
16 a
gain
st J
D 3
4,24
0,98
2, w
hich
is e
quiv
alen
t to
%7.
1 of
tota
l cre
dit
faci
litie
s as
of 3
1 D
ecem
ber
2015
.
Non
- pe
rfor
min
g cr
edit
faci
litie
s ex
clud
ing
inte
rest
and
com
mis
sion
s in
sus
pens
e am
ount
ed to
JD
32
,183
,664
whi
ch is
equ
ival
ent t
o %
5.7
of to
tal d
irec
t cre
dit f
acili
ties
afte
r ex
clud
ing
inte
rest
in s
uspe
nse
as o
f 31
Dec
embe
r 20
16 a
gain
st J
D 2
3,56
5,93
3 w
hich
is e
quiv
alen
t to
%4.
97 o
f tot
al c
redi
t fac
ilitie
s af
ter
excl
udin
g in
tere
st in
sus
pens
e as
of 3
1 D
ecem
ber
2015
.
Dir
ect c
redi
t fac
ilitie
s gr
ante
d to
/ gu
aran
teed
by
Jord
an G
over
nmen
t as
of 3
1 D
ecem
ber
2016
JD
24,
203
agai
nst J
D Z
ero
as o
f 31
Dec
embe
r 20
15.
Part
of t
he c
olla
tera
ls o
f the
due
inst
alm
ents
and
fina
nce
leas
e co
ntra
ct r
elat
ed to
Jor
dan
Tard
e Fa
cilit
ies
Com
pany
with
an
amou
nt o
f JD
16,
937,
500
(Che
ques
and
pro
mis
sory
not
es) a
s of
31
Dec
embe
r 20
16 w
ere
depo
site
d as
col
late
rals
aga
inst
the
loan
s an
d ov
erdr
aft o
f the
com
pany
.
Non
-per
form
ing
cred
it fa
cilit
ies
prov
isio
n am
ount
ed to
JD
23,
052,
493
as o
f 31
Dec
embe
r 20
16 a
gain
st J
D
18,3
79,2
94 a
s of
31
Dec
embe
r 20
15 in
add
ition
the
wat
ch li
st p
rovi
sion
am
ount
ed to
JD
262
,203
as
of 3
1 D
ecem
ber
2016
aga
inst
JD
898
,552
as
of 3
1 D
ecem
ber
2015
.
The
prov
isio
ns n
o lo
nger
nee
ded
due
to s
ettle
men
ts o
r re
paym
ents
of d
ebts
and
tran
sfer
red
agai
nst o
ther
de
bts
amou
nted
to J
D 8
,043
,963
as
of 3
1 D
ecem
ber
2016
aga
inst
JD
9,5
14,1
19 a
s of
31
Dec
embe
r 20
15.
The
prov
isio
n fo
r im
pair
ed c
redi
t fac
ilitie
s re
pres
entin
g w
atch
list
and
non
-per
form
ing
cred
it fa
cilit
ies
are
calc
ulat
ed b
ased
on
the
indi
vidu
al c
usto
mer
and
not
the
port
folio
exc
ept f
or th
e am
ount
880
,327
JD
has
be
en c
alcu
late
d on
the
base
s of
the
port
folio
An
nual
Rep
ort
34th
-
Bal
ance
at 1
Jan
uary
Inte
rest
in s
uspe
nse
for
the
year
Inte
rest
tran
sfer
red
to r
even
ue
Inte
rest
in s
uspe
nse
wri
tten
-off
*
Bal
ance
at y
ear
end
Bal
ance
at 1
Jan
uary
Inte
rest
in s
uspe
nse
for
the
year
Inte
rest
rev
erse
d to
inco
me
Inte
rest
in s
uspe
nse
wri
tten
-off
*
Bal
ance
at y
ear
end
-N
et c
redi
t fac
ilitie
s ar
e di
stri
bute
d ac
cord
ing
to e
cono
mic
sec
tor
taki
ng in
to c
onsi
dera
tion
that
all
loan
sgr
ante
d in
side
Jor
dan
as fo
low
s:
Tota
l
49,8
61,0
15
2,00
0,22
61,
661,
116
6,18
1,86
21,
238,
353
11,0
81,5
57
1,55
1,70
6
(5,1
56,0
42)
(1,1
44,9
82)
6,33
2,23
9
12,2
88,9
06
3,46
6,92
8
(1,8
13,1
96)
(2,8
61,0
81)
11,0
81,5
57
394,
319
92,2
8976
7,18
729
7,91
1
(31,
313)
(925
,392
)(3
,827
,503
)(3
71,8
34)
(652
,797
)(2
01,5
79)
(286
,658
)(3
,948
)
1,71
0,43
562
6,43
42,
834,
888
1,16
0,48
2
1,75
2,82
23,
040,
787
6,04
5,74
61,
449,
551
484,
627
257,
817
2,36
8,68
235
5,80
2
(25,
562)
(1,5
97,5
60)
(170
,061
)(2
0,01
3)
(211
,661
)(3
9,92
8)(2
,062
,505
)(5
46,9
87)
2,00
0,22
61,
661,
116
6,18
1,86
21,
238,
353
73,4
56,0
37
126,
729,
392
43,3
84,7
57
32,3
75,0
34
1,35
5,41
5
64,8
68,1
88
16,0
24,1
10
24,2
03-
568,
277,
220
38,5
21,1
69
71,5
49,8
50
116,
701,
788
26,5
76,6
52
43,3
19,8
41
1,21
9,31
3
60,6
40,3
19
20,6
94,1
65
105,
840,
574
160,
199,
069
485,
063,
671
This
item
con
sist
s of
the
follo
win
g:
Cost
Addi
tions
Dis
posa
ls
Dis
posa
ls
Addi
tions
Tran
sfer
s
Bal
ance
at 3
1 D
ecem
ber
Bal
ance
at 3
1 D
ecem
ber
Net
boo
k va
lue
of fi
xed
asse
ts a
s of
31
Dec
embe
r Ad
vanc
ed p
aym
ents
on
purc
hase
pro
pert
y an
d eq
uipm
ent a
nd p
roje
cts
und
er c
onst
ruct
ion
**N
et p
rope
rty
and
equi
pmen
t
9,34
1,88
6
14,3
60,0
9611
,294
,518
321,
879
2,10
7,26
437
,425
,643
9,34
1,88
6
9,34
1,88
6
14,8
62,1
4612
,868
,559
446,
985
2,36
6,93
239
,886
,508
-1,
223,
505
6,69
7,73
316
4,00
01,
402,
008
9,48
7,24
6
1,57
1,33
551
,827
(81,
253)
(38,
865)
262,
192
2,19
9,45
1
-50
2,05
020
0,47
584
,500
103,
248
890,
273
-80
0,40
3
(81,
270)
(45,
730)
86,3
3617
0,95
21,
057,
691
(152
,930
)
-
(146
,047
)
665,
831
-
314,
097
-
-
(2
5,92
9)
8,31
9,30
020
6,67
212
,174
,992
1,71
8,79
7
12,9
31,9
234,
549,
259
240,
313
27,7
11,5
1664
8,13
5
9,34
1,88
613
,670
,494
4,67
2,78
124
0,31
328
,573
,609
648,
135
-73
8,57
112
3,52
2-
862,
093
-
-1,
930,
223-
-11
,398
(25,
930)
65
4,43
3
- -
*Ac
cord
ing
to th
e de
cisi
on ta
ken
by b
oard
of d
irec
tors
of t
he b
ank
and
the
seni
or m
anag
emen
t of A
l-M
awar
ed(S
ubsi
diar
y co
mpa
ny),
non
perf
orm
ing
cred
it fa
cilit
ies
with
thei
r re
late
d in
tere
st in
sus
pens
e ha
ve b
een
wri
tten
off
amou
nted
to o
f JD
1,3
55,7
42 d
urin
g th
e ye
ar e
nded
31
Dec
embe
r 20
16 a
gain
st J
D 9
,494
,144
for
the
year
201
5.
Bal
ance
s ge
nera
ted
from
inve
stm
ent i
n su
bsid
iari
es
-39
2,62
113
1,48
529
,710
80,5
2663
4,34
2
Bal
ance
s ge
nera
ted
from
inve
stm
ent i
n su
bsid
iari
es
An
nual
Rep
ort
34th
-
-Pr
oper
ty, p
lant
and
equ
ipm
ent i
nclu
de fu
lly d
epre
ciat
ed it
ems
amou
ntin
g to
JD
5,8
13,1
01as
of 3
1 D
ecem
ber
2016
agai
nst J
D 4
,048
,529
as
of 3
1 D
ecem
ber
2015
.
*Th
is it
em c
onta
ins
pled
ge la
nds
and
build
ings
by
JD 6
,222
,084
to th
e in
tere
st o
f spe
cial
ized
fina
nce
leas
e co
.ag
ains
t cap
ital l
ease
for
subs
idia
ry w
hich
am
ount
ed to
JD
6,3
81,7
47 a
s of
31
Dec
embe
r 20
15.
This
item
con
sist
s of
the
follo
win
g:
Bal
ance
at y
ear
end
35,6
8822
6,57
0
-
-
652,
698
652,
698
720,
369
(60,
899)
60,8
99
35,6
881,
537,
177
3,00
3,46
31,
955,
925
7,38
07,
380
-
1,69
2,85
647
9,23
2
60,8
991,
895,
026
1,43
0,59
8 - -
1,43
0,59
8--1,
955,
925
2,19
7,06
2
*Ad
ditio
ns r
epre
sent
the
amou
nts
paid
to a
cqui
re a
nd im
prov
e th
e ba
nkin
g sy
stem
s an
d pr
ogra
ms.
** T
he b
ank
acqu
ired
%93
.275
of J
orda
n Tr
ade
faci
litie
s C
o. d
urin
g th
e ye
ar 2
016,
thro
ugh
its s
ubsi
diar
y (T
amke
en L
easi
ng C
ompa
ny),
whi
ch o
wns
%10
0 of
Tra
de F
acili
ties
for
Fina
nce
Leas
ing
Com
pany
), as
the
bank
pur
chas
ed 1
5,39
0,38
5 sh
ares
with
1JD
sta
ted
valu
e. T
he a
cqui
sitio
n co
st J
D 2
0,77
4,62
0 an
dth
e ne
t ass
ets
fair
val
ue J
D 1
9,34
4,02
2 on
the
date
of a
cqui
sitio
n th
at r
aise
d a
good
will
am
ount
ed to
JD
1,4
30,5
98.
An im
pair
men
t tes
t has
bee
n pe
rfor
med
for
good
will
on
31 D
ecem
ber
2016
, in
whi
ch th
e G
oodw
ill
was
not
impa
ired
2015
Cost
Addi
tions
Dis
posa
ls
Dis
posa
ls
Addi
tions
Tran
sfer
s
Bal
ance
at 3
1 D
ecem
ber
Bal
ance
at 3
1 D
ecem
ber
Net
boo
k va
lue
of fi
xed
asse
ts a
s of
31
Dec
embe
r Ad
vanc
ed p
aym
ents
on
purc
hase
pro
pert
y an
d eq
uipm
ent a
nd p
roje
cts
und
er c
onst
ruct
ion
**N
et p
rope
rty
and
equi
pmen
t
9,07
8,79
910
,326
,486
6,99
3,74
931
7,12
91,
573,
880
28,2
90,0
43
132,
500
533,
384
8,93
1,38
82,
348,
137
1,88
3,75
7
(3,6
15)
4,03
3,61
0
(127
,750
)(1
31,3
65)
--
--
335,
577
321,
879
2,10
7,26
437
,425
,643
9,34
1,88
611
,294
,518
14,3
60,0
96
257,
688
1,09
4,09
57,
578,
944
--
5,26
5,56
2-
961,
599
(131
,228
)
164,
000
1,40
2,00
89,
487,
246
6,69
7,73
3-
1,22
3,50
5
157,
879
705,
256
27,9
38,3
979,
341,
886
4,59
6,78
513
,136
,591
-11
,398
789,
353
-77
7,95
5-
157,
879
716,
654
28,7
27,7
509,
341,
886
5,37
4,74
013
,136
,591
-
33
5,57
7-
An
nual
Rep
ort
34th
-
JDJD
31 D
ecem
ber
2016
31 D
ecem
ber
2015
Bal
ance
rel
ated
to fr
audu
lent
tran
sact
ions
Prov
isio
n re
late
d to
this
bal
ance
Proc
eeds
from
insu
ranc
e co
mpa
ny
Net
bal
ance
rel
ated
to fr
audu
lent
tran
sact
ions
12,9
74,7
00
(1,5
00,0
00)
12,
974,
700 -
(10,
435,
500)
(1
0,43
5,50
0)
1,03
9,20
0
2,5
39,2
00
The
Ban
k w
as im
pose
d to
em
bezz
lem
ent t
rans
actio
n in
the
bala
nces
at b
anks
and
fina
ncia
l ins
titut
ions
ac
coun
ts w
hich
led
to a
loss
of a
ppro
xim
atel
y JD
12.
9 m
illio
n. T
his
prim
arily
rel
ates
to th
e po
ssib
ility
of
collu
sion
bet
wee
n so
me
of th
e ba
nk’s
em
ploy
ees.
All
the
nece
ssar
y le
gal p
roce
dure
s w
ere
take
n by
the
bank
’s m
anag
emen
t and
a p
rovi
sion
for
an a
mou
nt o
f JD
10.
4 m
illio
n w
as b
ooke
d fo
r th
e tr
ansa
ctio
n as
of
31
Dec
embe
r 20
16 a
nd 3
1 D
ecem
ber
2015
aft
er n
ettin
g th
e am
ount
s ex
pect
ed to
be
reco
vere
d an
d th
ere
poss
esse
d as
sets
, and
ded
uctin
g pr
ocee
ds fr
om th
e in
sura
nce
com
pany
with
an
amou
nt o
f JD
1.5
mill
ion.
The
case
is s
till p
endi
ng a
t the
Gen
eral
Att
orne
y.
(13)
OTH
ER A
SSET
S
This
item
con
sist
s of
the
follo
win
g:
JDJD
31 D
ecem
ber
2016
31 D
ecem
ber
2015
Accr
ued
inte
rest
and
rev
enue
Prep
aid
expe
nses
*
Asse
ts s
eize
d by
the
Ban
k **
Ref
unda
ble
depo
sits
Bal
ance
s re
late
d to
frau
dule
nt tr
ansa
ctio
ns -
Net
***
Oth
ers
1,59
6,91
7
3,15
1,09
2
43,0
96,3
52
436,
480
134,
747
2,20
4,51
1
55,1
23,2
85
*Pr
epai
d ex
pens
es in
clud
e JD
18
mill
ion
whi
ch r
epre
sent
the
rent
of t
he n
ew b
ranc
h fo
r th
e ba
nk in
Abdo
un A
rea
for
18 y
ears
that
are
pai
d in
adv
ance
.
** T
he C
entr
al B
ank
of J
orda
n’s
inst
ruct
ions
req
uire
dis
posa
l of a
sset
s se
ized
by
the
bank
dur
ing
a m
axim
um p
erio
d of
two
year
s fr
om th
e da
te o
f for
eclo
sure
and
the
Cent
ral B
ank
of J
orda
n ca
n ex
tend
that
pe
riod
for
a m
axim
um o
f ano
ther
two
cons
ecut
ive
year
s. T
he b
alan
ce is
pre
sent
ed n
et o
f rel
ated
im
pair
men
t pro
visi
on fo
r th
e am
ount
of J
D 4
24,6
89 a
s of
31
Dec
embe
r 20
16 a
gain
st to
JD
496
,352
for
the
year
201
5, a
nd p
rovi
sion
for
asse
ts s
eize
d fo
r m
ore
than
four
yea
rs a
ccor
ding
to th
e in
stru
ctio
ns o
f Cen
tral
B
ank
of J
orda
n fo
r th
e am
ount
s of
JD
1,3
61,8
41 a
t 31
Dec
embe
r 20
16 a
gain
st J
D 2
80,4
15 a
s of
31
Dec
embe
r 20
15.
The
mov
emen
t on
asse
ts s
eize
d by
the
Ban
k w
as a
s fo
llow
s:
Post
-dat
ed C
hequ
es
Purc
hase
acc
epta
nces
1,03
9,20
0
3,46
3,98
6
JD
Bal
ance
at b
egin
ning
of t
he y
ear
Addi
tions
*
Bal
ance
at y
ear
end
2,88
9,85
22,
889,
852
13,5
21,9
95
46,6
99,5
7871
4,02
547
,413
,603
36,5
12,0
88
(7,0
99,4
09)
-(7
,099
,409
)(2
,379
,368
)
71,6
63-
71,6
63
39,3
03
(1,0
81,4
26)
-(1
,081
,426
)(2
80,4
15)
42,3
82,3
2771
4,02
543
,096
,352
47,4
13,6
03
Dis
posa
ls
Prov
isio
n fo
r as
sets
sei
zed
for
mor
eth
an 4
yea
rs *
*
(Pro
visi
on) A
mou
nt re
vers
ed fr
om
impa
irmen
t of a
sset
s se
ized
by
the
Bank
31 D
ecem
ber
2015
31 D
ecem
ber
2014
Seiz
ed
Asse
ts
Othe
r Se
ized
*As
sets
*Th
is it
em r
epre
sent
fair
val
ue o
f siz
ed s
tock
s ag
ains
t mat
ured
faci
litie
s am
ount
ed to
JD
683
,800
inad
ditio
n to
JD
30,
225
repr
esen
ts s
ized
tool
s as
of 3
1 D
ecem
ber
2016
and
31
Dec
embe
r 20
15.
** T
his
item
rep
rese
nt p
rovi
sion
aga
inst
siz
ed a
sset
s fo
r m
atur
ed fa
cilit
ies
and
bank
siz
ed it
for
mor
e th
an
four
yea
rs a
nd th
e pr
ovis
ion
agai
nst s
eize
d as
sets
for
mor
e th
an tw
o ye
ars
and
less
than
four
yea
rs
acco
rdin
g to
the
inst
ruct
ions
of C
entr
al B
ank
of J
orda
n.
***
This
item
incl
udes
net
bal
ance
rel
ated
to th
e fr
audu
lent
tran
sact
ions
aft
er d
educ
ting
the
rela
ted
prov
isio
n as
sho
wn
belo
w:
Tota
lJD To
tal
1,59
4,05
6
3,08
5,64
9
47,4
13,6
03
1,59
8,72
7
2,53
9,20
0
354,
018
59,0
66,1
38
111,
007
2,36
9,87
8
Bal
ance
s ge
nera
ted
from
inve
stm
ent
in s
ubsi
diar
ies
902,
069
-
9
02,0
69-
-
52
Annu
al R
epor
t 34
th
This
item
con
sist
s of
the
follo
win
g:
Curr
ent a
ccou
nts
Tim
e an
d no
tice
Dep
osits
*
Tota
l
*Th
is a
mou
nt d
oes
not i
nclu
de a
ny a
mou
nt m
atur
ing
with
in a
per
iod
exce
edin
g th
ree
mon
ths
as o
fD
ecem
ber
2016
and
201
5
This
item
con
sist
s of
the
follo
win
g:
Savi
ng d
epos
its
Dep
osits
cer
tifica
tes
Savi
ng d
epos
its
Dep
osits
cer
tifica
tes
35,5
172,
365,
638
2,40
1,15
552
,788
2,90
6,80
42,
959,
592
31,8
43-
31,8
4331
,683
6,02
7,00
06,
058,
683
67,3
602,
365,
638
2,43
2,99
884
,471
8,93
3,80
49,
018,
275
336,
911,
427
248,
498,
356
25,9
62,3
99
62,2
73,4
22
213,
948,
456
162,
691,
700
524,
055
50,7
32,7
01
25,1
29,7
00
9,08
7,44
7
286,
619
15,7
55,6
34
46,8
27,1
60
45,6
14,9
82
1,87
7
1,21
0,30
1
622,
816,
743
465,
892,
485
26,7
74,9
50
129,
972,
058
15,6
24,0
4011
8,70
6,25
1
18,3
33,8
2948
1,73
4,38
81,
8
215,
229,
166
8,83
7,06
944
5,52
0,56
2
297,
886
- -
-
29
7,88
6
25,1
95,4
9758
4,07
6,35
5
This
item
con
sist
s of
the
follo
win
g:
Cash
mar
gins
on
dire
ct c
redi
t fac
ilitie
s
Cash
mar
gins
on
indi
rect
cre
dit f
acili
ties
Oth
er m
argi
ns
22,8
27,7
05
9,32
3,95
2
5,75
0
32,1
57,4
07
26,7
00,5
06
11,3
88,5
71
5,75
0
38,0
94,8
27
Bor
row
ed fu
nds
are
deta
iled
as fo
llow
s:
31 D
ecem
ber
2016
Bor
row
ed lo
ans
from
bank
s/ L
ocal
inst
ituat
ion
99,7
89,6
24
99,7
89,6
24
Mon
thly
,Qua
rter
ly,
Sem
i Ann
ually
and
on
mat
urity
dat
e
Mor
tgag
e gu
rant
ee/
Tool
s an
d eq
uipm
ent
gura
ntee
%4.
3 to
%8.
25
185
143
Mon
thly
,Qua
rter
ly,
Sem
i Ann
ually
and
on
mat
urity
dat
e
Mor
tgag
e gu
rant
ee/
Tool
s an
d eq
uipm
ent
gura
ntee
%4.
5 to
%7.
75
31 D
ecem
ber
2015
Bor
row
ed lo
ans
from
bank
s/ L
ocal
inst
ituat
ion
-G
over
nmen
t and
Pub
lic s
ecto
r de
posi
ts a
mou
nted
to J
D 4
6,82
7,16
0 w
hich
is e
quiv
alen
t to
%7.
5 of
tota
lcu
stom
er’s
dep
osits
as
of 3
1 D
ecem
ber
2016
aga
inst
JD
8,3
75,0
92 w
hich
is e
quiv
alen
t to
(%14
.1) o
f tot
alcu
stom
er’s
dep
osits
as
of 3
1 D
ecem
ber
2015
.
-N
on-i
nter
est b
eari
ng d
epos
its a
mou
nted
to J
D 1
53,4
26,5
82 w
hich
is e
quiv
alen
t to
%24
.6 o
f tot
al c
usto
mer
sde
posi
ts a
s of
31
Dec
embe
r 20
16 a
gain
st J
D 1
41,4
71,8
78, w
hich
is e
quiv
alen
t to
(%24
.2)o
f tot
al c
usto
mer
sde
posi
ts a
s of
31
Dec
embe
r 20
15.
-R
estr
icte
d de
posi
ts a
mou
nted
to J
D 8
,808
286
whi
ch is
equ
ival
ent t
o %
1.4
of to
tal c
usto
mer
’s d
epos
its a
s of
31 D
ecem
ber
2016
aga
inst
JD
13,
483,
960,
whi
ch is
equ
ival
ent t
o (%
2.3)
as
of 3
1 D
ecem
ber
2015
.
-D
orm
ant d
epos
its a
mou
nted
to J
D 5
,382
,574
as
of 3
1 D
ecem
ber
2016
aga
inst
JD
5,3
64,8
53 a
s of
31
Dec
embe
r 20
15.
978
715
-B
orro
wed
fund
s re
pres
ents
cre
dit f
acili
ties
from
loca
l ban
ks a
mou
nted
to J
D 7
2,28
9,62
4 an
d in
form
of o
verd
raft
acco
unts
and
rev
olvi
ng lo
ans
gran
ted
to th
e su
bsid
iary
com
pani
es (T
amke
enLe
asin
g Co
mpa
ny a
nd A
l-Is
teth
mar
iLe
Tam
wee
l Sel
sela
t Al I
mda
d) a
gain
st th
e gu
aran
tee
of th
e su
bsid
iari
es’ n
etw
orth
.
-B
orro
wed
fund
s al
so c
onta
ins
cred
it fa
cilit
ies
gran
ted
from
Jor
dan
Mor
tgag
e re
finan
cing
com
pany
am
ount
ed to
JD27
,500
,000
, and
ban
k re
finan
ce a
n ho
usin
g lo
ans
for
inte
rest
rat
e of
%7.
5.
-Fi
xed
inte
rest
loan
s am
ount
ed to
JD
78,
789,
624
and
vari
able
inte
rest
loan
sam
ount
ed 2
1,00
0,00
0 as
of 3
1 D
ecem
ber
2016
aga
inst
fixe
d in
tere
st lo
ans
amou
nted
42,
322,
037
and
ther
e is
no
loan
sin
tere
st r
ates
as
of 3
1 D
ecem
ber
2015
.
-Pa
rt o
f the
col
late
rals
of t
he d
ue
and
fina
nce
leas
e co
ntra
ct r
elat
ed to
Jor
dan
Tard
e Fa
cilit
ies
Com
pany
with
an
amou
nt o
f JD
16,
937,
500
(Che
ques
and
pro
mis
sory
not
es) a
s of
31
Dec
embe
r 20
16 w
ere
depo
site
das
colla
tera
ls a
gain
st th
e lo
ans
and
over
draf
t of t
he c
ompa
ny.
An
nual
Rep
ort
34th
This
item
con
sist
s of
the
follo
win
g:
31 D
ecem
ber
2016
Prov
isio
n fo
r em
ploy
ees
end-
of s
ervi
ce in
dem
nity
Prov
isio
n fo
r la
wsu
its
agai
nst t
he B
ank(
Not
e 46
)
Oth
ers
31 D
ecem
ber
2015
Prov
isio
n fo
r em
ploy
ees
end-
of s
ervi
ce in
dem
nity
Prov
isio
n fo
r la
wsu
its
agai
nst t
he B
ank(
Not
e 46
)
Oth
ers
-
-
-
-
19,6
2713
,466
-
33,0
93
608,
094
52,3
1822
,956
636,
373
1,06
2,46
3
1,08
2,09
0
215,
613
229,
079
640,
620
- 60
0,00
036
,373
659,
329
652,
318
710,
086
608,
094 -
-
5,00
0
-
-
-
-
-
-
5,00
0
12,3
207,
307
-
19,6
27
108,
830
906,
781
924,
101
-
264,
512
-
271,
819
1,06
2,46
3
1,08
2,09
011
3,83
0
A.Pr
ovis
ion
for
inco
me
tax
The
mov
emen
t on
the
prov
isio
n fo
r in
com
e ta
x is
as
follo
ws:
Bal
ance
at t
he b
egin
ning
of t
he y
ear
Bal
ance
s ge
nera
ted
from
inve
stm
ent i
n su
bsid
iari
es
Tota
l inc
ome
tax
paid
Prio
r ye
ar’s
inco
me
tax
Inco
me
tax
for
the
year
Bal
ance
at y
ear
end
Inco
me
tax
prov
isio
n fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
16 a
nd 2
015
was
cal
cula
ted
acco
rdin
g to
app
licab
le
law
s, r
egul
atio
ns a
nd In
tern
atio
nal fi
nanc
ial r
epor
ting
stan
dard
s.
6,20
8,28
73,
467,
908
278,
912
-
(7,1
17,6
09)
(4,0
92,0
44)
143,
763
-
6,98
8,10
16,
832,
423
6,50
1,45
46,
208,
287
Inco
me
tax
expe
nse
for
the
year
con
sist
s of
the
follo
win
g:
Prio
r ye
ar’s
inco
me
tax
Def
erre
d ta
x as
sets
Amor
tizat
ion
of d
efer
red
tax
asse
ts
Def
erre
d ta
x lia
bilit
ies
Amor
tizat
ion
of d
efer
red
tax
liab
ilitie
s
Bal
ance
at y
ear
end
855,
082 -
6,77
0,96
7
660,
769
(1,2
29,2
76)
(805
,868
)
163,
372
-
6,98
8,10
16,
832,
423
27,1
57
(6,3
12)
(419
,463
)
6,29
5,01
8
Inco
me
tax
on p
rofit
for
the
yea
The
lega
l inc
ome
tax
rate
in J
orda
n fo
r th
e B
ank
is %
35 a
nd fo
r th
e su
bsid
iari
es is
%24
.
Tax
stat
us o
f the
Ban
kTh
e ba
nk h
as r
each
ed to
a fi
nal s
ettle
men
t with
the
Inco
me
and
Sale
s Ta
x D
epar
tmen
t up
to th
e en
d of
the
year
201
3 an
d In
com
e an
d sa
les
tax
depa
rtm
ent a
ccep
ted
year
201
4 ta
x re
turn
s w
ithou
t any
am
endm
ents
.
The
bank
pro
vide
d its
tax
decl
arat
ion
for
the
year
201
5 on
the
peri
od s
peci
fied
lega
lly a
nd S
ales
Tax
D
epar
tmen
t did
not
rev
ise
reco
rd u
ntil
the
date
of p
repa
ratio
n of
thes
e fin
anci
al s
tate
men
ts.
As p
er th
e op
inio
n of
the
com
pany
’ man
agem
ent a
nd it
s ta
x ad
viso
r, th
e ta
x lia
bilit
ies
exce
edin
g th
e bo
oked
pr
ovis
ion
as o
f 31
Dec
embe
r 20
16.
Tax
stat
us o
f Al M
awar
ed fo
r Fi
nanc
ial B
roke
rage
Com
pany
(Sub
sidi
ary
Com
pany
)
The
com
pany
has
rea
ched
to a
fina
l set
tlem
ent w
ith th
e in
com
e an
d sa
les
tax
depa
rtm
ent f
or th
e pe
riod
si
nce
ince
ptio
n on
5 J
une
2006
till
the
end
of
the
year
201
1. M
oreo
ver,
Inc
ome
and
sale
s ta
x de
part
men
t ac
cept
ed y
ears
201
,201
and
201
4 ta
x re
turn
s w
ithou
t any
am
endm
ents
.
As p
er th
e op
inio
n of
the
com
pany
’ man
agem
ent a
nd it
s ta
x co
nsul
tant
, the
com
pany
will
not
hav
e an
y ta
x lia
bilit
ies
exce
edin
g th
e bo
oked
pro
visi
on a
s of
31
Dec
embe
r 20
16.
Tax
stat
us o
f Tam
keen
Lea
sing
Com
pany
(Sub
sidi
ary
Com
pany
)
The
com
pany
has
not
sub
mitt
ed it
s ta
x re
turn
for
the
peri
od s
ince
ince
ptio
n on
31
Oct
ober
200
6 to
31
Dec
embe
r 20
07 a
nd fo
r th
e ye
ars
2008
and
200
9.
The
com
pany
has
rea
ched
to a
fina
l set
tlem
ent w
ith th
e in
com
e an
d sa
les
tax
depa
rtm
ent f
or th
e ye
ars
,201
0 20
1,2
01 ,2
01 a
nd 2
014.
As p
er th
e op
inio
n of
the
com
pany
’s m
anag
emen
t and
its
tax
cons
ulta
nt, t
he c
ompa
ny w
ill n
ot h
ave
any
tax
liabi
litie
s ex
ceed
ing
the
book
ed p
rovi
sion
as
of 3
1 D
ecem
ber
2016
.
An
nual
Rep
ort
34th
B.D
efer
red
tax
asse
ts/L
iabi
litie
sTh
is it
em c
onsi
sts
of th
e fo
llow
ing:
Acco
unts
incl
uded
A-D
efer
red
Tax
Asse
ts
B-
Def
erre
d Ta
x Li
abili
ties
Prov
isio
n fo
r em
ploy
ees
end-
of-s
ervi
ce in
dem
nitie
s
Prov
isio
n fo
r la
wsu
its
agai
nst t
he B
ank
Prov
isio
n fo
r de
bts
Wat
ch li
st
Prov
isio
n fo
r la
wsu
its/ J
orda
nTr
ade
Faci
litie
s Co
mpa
ny
Prov
isio
n fo
r im
pair
men
t in
seiz
ed a
sset
s by
the
Ban
k
Prov
isio
n fo
r im
pair
men
t on
por
tfol
io
6,86
9
302,
515 -
Prov
isio
n fo
r bu
ildin
gs o
wne
d m
ore
than
four
yea
rs
Chan
ge in
fair
val
ue r
eser
veEf
fect
of e
arly
ado
ptio
n of
IF
RS
(9)
1,79
1,76
3 -5,
016,
973
938,
678
8,27
4,26
6
Prov
isio
n fo
r im
pairm
ent i
n fin
anci
al b
roke
rage
Prov
isio
n fo
r dou
btfu
l deb
t –
Jord
an T
rade
Fac
ilitie
s Co
mpa
nyUn
paid
boa
rd o
f dire
ctor
s bon
uses
/ A
l Maw
ared
Com
pany
9,60
0
Prov
ision
aga
inst
bal
ance
s rel
ated
to fr
audu
lent
tran
sact
ions
*
Unpa
id e
mpl
oyee
s bon
us
Unp
aid
boar
d of
dir
ecto
rsre
mun
erat
ions
12,0
00
3,65
2,42
5
280,
652
19,6
27
328,
537
--
--
-
880,
327
33,0
9313
,466
--
130,
559
141,
841
49,6
44
22,9
56
853,
046
-
880,
327 -
71,6
63-
1,08
1,42
6-
-
--
-
275,
317
-4,
741,
657
40,0
0050
,000
-
--
-
308,
114
173,
723
424,
689
148,
641
98,1
4547
6,64
41,
361,
841
11,5
83
371,
862
1,06
2,46
3
864,
328
22,9
56
640,
620
215,
613
637,
456
-22
4,21
7
--
-
496,
352
280,
415
1,79
1,76
343
0,01
543
0,01
6
50,0
0040
,000
3,65
2,42
510
,435
,500
893,
678
756,
863
-80
1,86
3
114,
630
37,7
0840
,121
80,9
3174
,038
-10
7,73
7
2,36
8,20
7-
-5,
906,
059
-18
,033
-18
,033
10,4
35,5
00
2,06
7,12
1
6,31
2
2,81
2,85
0
8,27
4,26
6
1,20
4,07
4-
Tax
stat
us o
f Al I
stet
hmar
i Let
amw
eel S
else
lat A
l Im
dad
Com
pany
(Sub
sidi
ary
Com
pany
)
The
com
pany
has
rea
ched
to a
fina
l set
tlem
ent w
ith th
e in
com
e an
d sa
les
tax
depa
rtm
ent u
ntil
the
end
of
the
year
201
0.
Inco
me
and
sale
s ta
x de
part
men
t acc
epte
d ye
ars
201
,201
2 ,2
01 a
nd 2
014
As p
er th
e op
inio
n of
the
com
pany
’s m
anag
emen
t and
its
tax
cons
ulta
nt, t
he c
ompa
ny w
ill n
ot h
ave
any
tax
liabi
litie
s ex
ceed
ing
the
book
ed p
rovi
sion
as
of 3
1 D
ecem
ber
2016
.
Tax
stat
us o
f Jor
dan
Trad
e Fa
cilit
ies
Com
pany
(Sub
sidi
ary
Com
pany
)
The
Inco
me
and
Sale
s Ta
x de
part
men
t had
fina
lized
its
revi
ew a
nd is
sued
a fi
nal c
lear
ance
up
to th
e ye
ar e
nded
31
Dec
embe
r 20
11. T
he C
ompa
ny r
aise
d a
law
sui
t aga
inst
the
inco
me
tax
depa
rtm
ent i
n th
e re
late
d co
urts
cla
imin
g ba
ck a
mou
nt o
f JD
419,
000
for
2009
and
stil
l in
the
case
in c
ourt
. Als
o th
e Co
mpa
ny r
aise
d a
lega
l cas
e in
the
spec
ializ
ed c
ourt
for
the
tax
impo
sed
in 2
010.
The
app
eal d
ecis
ion
has
been
dec
lare
d on
19
Dec
embe
r 20
16
appr
ovin
g th
e am
ount
rec
orde
d in
the
corp
orat
e in
com
e ta
x re
turn
not
ing
that
the
amou
nt is
pai
d in
full.
The
co
mpa
ny w
ill a
ppea
l thi
s de
cisi
on in
the
cour
t. Th
e m
anag
emen
t and
the
tax
advi
sor
exce
pt ta
x su
rplu
s am
ount
of
JD 1
40,0
00.
The
Com
pany
sub
mitt
ed c
orpo
rate
inco
me
tax
retu
rn fo
r th
e ye
ars
201
,201
and
201
4 on
the
due
date
s. T
he
Inco
me
and
Sale
s Ta
x de
part
men
t had
fina
lized
its
revi
ew a
nd is
sued
a fi
nal c
lear
ance
for
2012
and
201
3. F
or 2
014
it w
as a
ccep
ted
unde
r th
e sa
mpl
e ba
sis.
The
Com
pany
sub
mitt
ed c
orpo
rate
inco
me
tax
retu
rn fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
15 o
n th
e du
e da
te. T
he
Inco
me
and
Sale
s Ta
x de
part
men
t did
not
rev
iew
the
inco
me
tax
for
the
year
201
5 up
to d
ate
of is
suin
g th
e fin
anci
al s
tate
men
ts.
The
Subs
idia
ry “
Jord
an F
acili
ties
for
Fina
nce
Leas
e L.
L.C
“sub
mitt
ed c
orpo
rate
inco
me
tax
retu
rn u
p to
the
year
en
ded
31 D
ecem
ber
2014
and
it w
as a
ccep
ted
unde
r th
e sa
mpl
e ba
sis
As p
er th
e op
inio
n of
the
com
pany
’ man
agem
ent a
nd it
s ta
x co
nsul
tant
, the
com
pany
and
its
subs
idia
ry w
ill n
ot
have
any
tax
liabi
litie
s ex
ceed
ing
the
book
ed p
rovi
sion
as
of 3
1 D
ecem
ber
2016
.
Def
erre
d ta
x lia
bilit
ies
incl
ude
an a
mou
nt o
f JD
2,8
12,8
50 a
s of
31
Dec
embe
r 20
16 a
gain
st J
D 2
,067
,121
as
of 3
1 D
ecem
ber
2015
whi
ch r
epre
sent
s ta
x lia
bilit
ies
agai
nst g
ains
on
the
eval
uatio
n of
fina
ncia
l ass
ets
at
fair
val
ue th
roug
h ot
her
com
preh
ensi
ve in
com
e w
hich
is s
how
n un
der
fair
val
ue r
eser
ve in
ow
ners
' equ
ity.
In a
dditi
on, t
here
's a
n am
ount
of J
D Z
ero
as o
f 31
Dec
embe
r 20
16 a
gain
st J
D 6
,312
as
of 3
1 D
ecem
ber
2015
re
pres
ents
def
erre
d ta
x lia
bilit
ies
on g
ain
on fi
nanc
ial a
sset
s at
fair
val
ue th
roug
h pr
ofit o
r lo
ss w
hich
is
rela
ted
to th
e ea
rly
adop
tion
of IF
RS
(9).
*Th
is it
em r
epre
sent
s th
e de
ferr
ed ta
x be
nefit
s ex
pect
ed fr
om th
e pr
ovis
ion
book
ed a
gain
st th
e ba
lanc
esre
late
d to
the
frau
dule
nt tr
ansa
ctio
ns (n
ote
13),
and
the
man
agem
ent b
elie
ves
thes
e am
ount
s ca
n be
reco
vere
d fr
om in
the
futu
res.
An
nual
Rep
ort
34th
The
mov
emen
t on
defe
rred
tax
asse
ts /
liabi
litie
s w
as a
s fo
llow
s:
Bal
ance
at t
he b
egin
ning
of t
he y
ear
Bal
ance
s ge
nera
ted
from
inve
stm
ent
in s
ubsi
diar
ies
Addi
tions
Ded
uctio
ns
Bal
ance
at y
ear
end
5,36
5,91
52,
073,
433
1,22
9,27
673
9,41
7
855,
082
-
6,88
3,61
52,
812,
850
C.Th
e su
mm
ary
of th
e re
conc
iliat
ion
betw
een
acco
untin
g pr
ofit a
nd ta
xabl
e pr
ofit i
s as
foll
ows:
Acco
untin
g pr
ofit f
or th
e ye
a
Non
-tax
able
pro
fi
Expe
nses
not
ded
uctib
le fo
r ta
x pu
rpos
es
Taxa
ble
profi
Inco
me
tax
perc
enta
ge fo
r th
e B
ank
Def
erre
d ta
xes
perc
enta
ge fo
r th
e B
ank
Inco
me
tax
perc
enta
ge fo
r th
e su
bsid
iary
com
pani
es
Def
erre
d ta
x pe
rcen
tage
for
the
subs
idia
ry c
ompa
nies
22,3
78,2
26
(6,0
42,1
26)
6,02
4,57
0
22,3
60,6
70
%35
%35
%24
%24
This
item
con
sist
s of
the
follo
win
g:
Bro
kera
ge p
ayab
le
Acce
pted
and
cer
tified
che
ck
Accr
ued
inte
rest
Sund
ry c
redi
tors
Div
iden
ds p
ayab
le
Dep
osits
on
safe
dep
osit
boxe
s
Accr
ued
expe
nses
Oth
er li
abili
ties
544,
726
1,04
1,83
2
3,23
0,26
9
3,32
6,20
2
94,4
68
110,
871
1,29
1,30
7
2,43
5,20
1
12,0
74,8
76
610,
990
1,80
1,30
8
2,46
5,77
5
5,06
9,80
7
103,
607
85,2
44
2,59
2,72
7
13,8
35,7
00
Auth
oriz
ed a
nd p
aid-
up c
apita
l am
ount
ed to
JD
100
mill
ion
dist
ribu
ted
over
100
mill
ion
shar
es a
t a p
ar v
alue
of J
D 1
per
sha
re a
s of
the
end
of th
e ye
ar 2
016
and
2015
The
deta
ils o
f the
res
erve
s as
of 3
1 D
ecem
ber
2016
, are
as
follo
ws:
a -
Stat
utor
y R
eser
ve:
This
acc
ount
rep
rese
nts
the
accu
mul
ated
am
ount
of a
ppro
pria
tions
from
inco
me
befo
re ta
x fo
r pr
ior
year
sat
%10
acc
ordi
ng to
the
Ban
ks L
aw. T
his
amou
nt is
not
to b
e di
stri
bute
d to
sha
reho
lder
s.
b -
Gene
ral B
anki
ng R
isks
Res
erve
This
item
rep
rese
nts
the
gene
ral b
anki
ng r
isks
res
erve
acc
ordi
ng to
the
Cent
ral B
ank
of J
orda
n's
inst
ruct
ions
.
c -
The
deta
ils o
f the
res
tric
ted
rese
rves
are
as
foll
ows:
23,5
70,7
7121
,332
,948
5,31
1,28
44,
603,
049
Res
tric
ted
acco
rdin
g to
the
Ban
ks la
w a
nd
Com
pani
es L
aw
Res
tric
ted
acco
rdin
g to
th
e Ce
ntra
l Ban
k of
Jor
dan
This
item
con
sist
s of
the
follo
win
g:
Bal
ance
at t
he b
egin
ning
of t
he y
ear
Def
erre
d ta
x lia
bilit
ies
Unr
ealiz
ed g
ain
Loss
es o
n sa
le o
f fina
ncia
l ass
ets
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
Bal
ance
at e
nd o
f the
yea
r
3,83
9,17
6
(745
,729
)
1,72
6,00
1
672,
071
5,49
1,51
9
2,76
2,65
8
(579
,538
)
1,62
2,00
9
34,0
47
3,83
9,17
6
The
finan
cial
ass
ets
reva
luat
ion
rese
rve
is p
rese
nted
net
aft
er d
educ
ting
defe
rred
tax
liabi
litie
s of
JD
2,8
12,8
50as
of 3
1 D
ecem
ber
2016
aga
inst
JD
2,0
67,1
21 a
s of
31
Dec
embe
r 20
15.
5,22
0,81
61,
886,
194
805,
868
732,
777
1,14
3,50
6-
--
660,
769
545,
538
5,36
5,91
52,
073,
433
20,6
04,8
44
(4,8
25,2
40)
4,48
0,21
3
20,2
59,8
17
%35
%35
%24
%24
An
nual
Rep
ort
34th
This
item
con
sist
s of
the
follo
win
g:
Bal
ance
at t
he b
egin
ning
of t
he y
ear
Profi
t for
the
year
loss
es o
n sa
le o
f fina
ncia
l ass
ets
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
Tran
sfer
red
to r
eser
ves
Div
iden
ds
Bal
ance
at e
nd o
f the
yea
r
23,9
84,2
52
15,2
97,7
99
(672
,071
)
(2,9
46,0
58)
(8,0
00,0
00)
27,6
63,9
22
19,0
52,7
42
14,2
54,1
68
(34,
047)
(2,2
88,6
11)
(7,0
00,0
00)
23,9
84,2
52
Tam
keen
leas
ing
com
pany
Al-I
stet
hmar
i let
amw
eel
Sels
elat
Al I
mda
d
10
40,8
5965
4,89
610
6 39
,877
312,
722
6
Jord
an T
rade
Fac
ilitie
s Co
mpa
ny5.
3322
8,72
41,
338,
100
-
Tota
l30
9,46
02,
305,
718
30,0
6161
4,03
7
25,5
9727
2,84
5
55,6
5888
6,88
2
This
item
con
sist
s of
the
follo
win
g:
Dir
ect c
redi
t fac
ilitie
s:In
divi
dual
s (r
etai
l):
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s
Cred
it ca
rds
Rea
l est
ate
loan
s
Com
pani
es
Corp
orat
e
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s
Med
ium
and
sm
all c
ompa
nies
Gove
rnm
ent a
nd p
ublic
sec
tor
Ove
rdra
ft
Loan
s an
d di
scou
nted
bill
s
Bal
ance
s at
the
Cent
ral B
ank
of J
orda
n
Bal
ance
s an
d de
posi
ts a
t ban
ks a
nd fi
nanc
ial i
nstit
utio
n
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
profi
t or
loss
Fina
ncia
l ass
ets
at a
mor
tized
cos
t
1,17
2,18
91,
357,
397
5,76
1,02
83,
550,
470
1,38
7,90
186
3,50
5
10,8
99,6
8612
,358
,381
5,62
7,51
05,
597,
732
19,3
73,1
0215
,499
,454
728,
428
936,
561
289
-
938,
491
544,
518
652,
756
836,
832
509,
500
311,
549
-20
,842
5,16
7,91
96,
631,
588
This
item
con
sist
s of
the
follo
win
g:
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ion
Cust
omer
s D
epos
its:
Curr
ent a
nd d
eman
d ac
coun
ts
Savi
ng a
ccou
nts
Tim
e an
d de
posi
ts s
ubje
ct to
not
es
Cert
ifica
tes
of d
epos
it
Cash
mar
gins
Bor
row
ed a
mou
nts
Fees
to D
epos
it in
sura
nce
corp
orat
ion
30,7
76
200,
593
243,
602
12,0
15,7
98
5,66
4
503,
469
3,54
9,07
7
1,09
5,17
9
17,6
44,1
58
1,62
2,77
9
212,
687
229,
131
14,7
91,1
14
16,8
68
482,
331
1,11
3,73
2
1,07
1,42
9
19,5
40,0
71
52,2
18,7
9948
,508
,829
Incl
uded
in r
etai
ned
earn
ings
is a
n am
ount
of J
D 6
,883
,615
res
tric
ted
agai
nst d
efer
red
tax
asse
ts a
s of
31
Dec
embe
r 20
16 a
gain
st J
D 5
,365
,915
as
of 3
1 D
ecem
ber
2015
.
-In
clud
ed in
the
reta
ined
ear
ning
s a
rest
rict
ed a
mou
nt o
f JD
1,0
39,2
00 a
s of
31
Dec
embe
r 20
16 (a
nd 3
1D
ecem
ber
2015
: JD
2,5
39,2
00) b
ased
on
Cent
ral B
ank
of J
orda
n re
ques
t, fo
r th
e re
mai
ning
bal
ance
of f
raud
ulen
ttr
ansa
ctio
ns.
-In
clud
ed in
ret
aine
d ea
rnin
gs a
n am
ount
of J
D 4
15,0
74 a
s of
31
Dec
embe
r 20
16 a
gain
st J
D 4
26,9
19 a
s of
31
Dec
embe
r 20
15, w
hich
rep
rese
nts
the
effe
ct o
f ear
ly a
dopt
ion
of IF
RS
(9).
Thes
e am
ount
s ar
e re
stri
cted
am
ount
san
d ca
nnot
be
utili
zed
unle
ss r
ealiz
ed a
s in
stru
cted
by
the
Jord
an S
ecur
ities
Com
mis
sion
.
-Th
e ba
lanc
e of
the
reta
ined
ear
ning
s do
es n
ot in
clud
e an
y di
ffere
nces
rev
alua
tion
of fi
nanc
ial a
sset
s at
fair
valu
e th
roug
h th
e in
com
e st
atem
ents
as
of 3
1 D
ecem
ber
2015
and
31
Dec
embe
r 20
16 .
the
gene
ral a
ssem
bly
of s
hare
hold
ers
to d
istr
ibut
eJD
10
Mill
ion
for
the
year
201
6 w
hich
equ
ival
ent t
o %
of c
apita
l.
In A
pril
2016
20
the
gene
ral a
ssem
bly
of s
hare
hold
ers
to d
istr
ibut
e 8,
000,
000
for
the
year
201
5 w
hich
eq
uiva
lent
8 %
.
This
item
con
sist
s of
the
follo
win
g:
An
nual
Rep
ort
34th
2016
2015
This
item
con
sist
s of
the
follo
win
g:
This
item
con
sist
s of
the
follo
win
g:
This
item
con
sist
s of
the
follo
win
g:
Com
mis
sion
s In
com
e:
Dir
ect c
redi
t fac
ilitie
s
Indi
rect
cre
dit f
acili
ties
Bro
kera
ge c
omm
issi
ons
Oth
er c
omm
issi
ons
Tota
l Com
mis
sion
s In
com
e
Less
: Com
mis
sion
s ex
pens
e
Net
Com
mis
sion
s In
com
e
Gai
ns fr
om fo
reig
n cu
rren
cies
trad
ing
/ dea
ling
Gai
ns fr
om r
eval
uatio
n
Com
pani
es s
hare
s
Com
pani
es s
hare
s
Tota
l
Tota
l
4,58
7,64
1
1,73
2,84
1
266,
375
1,07
0,83
7
7,65
7,69
4
(1,1
87,5
70)
6,47
0,12
4
3,59
4,82
3
1,97
7,48
5
277,
847
958,
284
6,80
8,43
9
955,
495
5,85
2,94
4
596,
606
498,
757
37,2
6041
,809
633,
866
540,
566
236,
853
(40,
118)
31,5
4722
8,28
2
236,
853
(40,
118)
31,5
4722
8,28
2
709,
054
(90,
022)
411,
090
1,03
0,12
2
709,
054
(90,
022)
411,
090
1,03
0,12
2
This
item
con
sist
s of
the
follo
win
g:
This
item
con
sist
s of
the
follo
win
g:
Bon
ded
inco
me
Tele
com
mun
icat
ion
inco
me
Gai
n on
sal
e of
ass
ets
seiz
ed b
y th
e ba
nk
Rev
erse
d fr
om w
ritt
en o
ff de
bts
Oth
er
2,04
4,45
7
226,
589
283,
784
749,
509
333,
684
3,63
8,02
3
1,40
5,26
0
206,
028
43,0
51
72,4
83
118,
835
1,84
5,65
7
Sala
ries
, ben
efits
, bon
uses
and
em
ploy
ees'
allo
wan
ces
Ban
k's
and
subs
idia
ries
sha
re in
soc
ial s
ecur
ity
Med
ical
exp
ense
s
Per
diem
s
Trav
el e
xpen
ses
Empl
oyee
s tr
aini
ng e
xpen
se
Empl
oyee
s lif
e in
sura
nce
expe
nse
11,4
78,8
49
1,14
8,76
0
6,11
4
46,3
15
115,
792
38,0
90
13,5
07,4
21
9,51
3,30
6
879,
656
539,
711
8,16
0
86,4
94
137,
639
19,2
61
11,1
84,2
27
An
nual
Rep
ort
34th
This
item
con
sist
s of
the
follo
win
g:
This
item
con
sist
s of
the
follo
win
g:
Ren
t
Stat
ione
ry
Adve
rtis
emen
ts
Subs
crip
tions
and
fees
Tele
com
mun
icat
ion
and
cour
ier
expe
nses
Mai
nten
ance
, rep
air
and
prog
ram
me
licen
ces
Insu
ranc
e
Lega
l fee
s
Wat
er, e
lect
rici
ty a
nd h
eatin
g
Prof
essi
onal
fees
Don
atio
ns
Cred
it ca
rds
expe
nse
Boa
rd m
embe
rs b
ounc
e an
d tr
ansp
orta
tion
Oth
ers
Inco
me
for
the
year
/att
ribu
tes
to b
anks
sha
reho
lder
s
Wei
ghte
d av
erag
e nu
mbe
r of
sha
res
*
Earn
ings
per
sha
re fr
om th
e in
com
e fo
r th
e ye
ar a
ttri
buta
ble
Ban
k sh
areh
olde
rs
*Th
e ba
sic
earn
ings
per
sha
re (E
PS)
for
the
curr
ent y
ear
profi
t att
ribu
ted
to p
aren
t ow
ners
equ
als
todi
lute
d (E
PS)
, si
nce
the
bank
did
not
issu
e an
y fin
anci
al in
stru
men
ts w
hich
may
aff
ect t
he b
asic
(EP
S)
707,
416
256,
689
1,08
1,46
3
679,
206
821,
225
1,13
0,68
7
179,
885
192,
516
424,
879
712,
645
128,
680
186,
808
436,
016
1,73
1,13
8
8,66
9,25
3
756,
273
145,
894
804,
699
708,
730
770,
591
968,
410
222,
296
109,
553
559,
869
375,
741
156,
760
158,
880
363,
933
1,34
0,45
8
7,44
2,08
7
0.15
3
15,2
97,7
99
14,
254,
168
This
item
con
sist
s of
the
follo
win
g:
JD
JD
Cash
on
hand
and
bal
ance
s at
the
Cent
ral B
ank
mat
ure
with
in th
ree
mon
ths
Add:
Bal
ance
s at
ban
ks a
nd fi
nanc
ial i
nstit
utio
ns m
atur
e w
ithin
thre
e m
onth
Less
:
Ban
ks a
nd fi
nanc
ial i
nstit
utio
ns d
epos
its m
atur
e w
ithin
thre
e m
onth
Res
tric
ted
bala
nces
at b
anks
and
fina
ncia
l ins
titut
ion
Cash
and
Cas
h Eq
uiva
lent
s
The
cons
olid
ated
fina
ncia
l sta
tem
ents
incl
ude
the
finan
cial
sta
tem
ents
of t
he b
ank
and
the
subs
idia
ry c
ompa
nies
as
follo
w
Al-M
awar
ed fo
r fin
anci
al b
roke
rage
Tam
keen
leas
ing
Com
pany
Al Is
teth
emar
i Let
amw
eel S
else
lat A
l lm
dad
Jord
an fa
ctor
ing
The
Ban
k en
tere
d in
to tr
ansa
ctio
ns w
ith m
embe
rs o
f the
Boa
rd o
f Dir
ecto
rs, e
xecu
tive
man
agem
ent,
subs
idia
ry
com
pani
es a
nd m
ajor
sha
reho
lder
s w
ithin
the
norm
al b
anki
ng p
ract
ice
acco
rdin
g to
the
com
mer
cial
inte
rest
rat
es a
nd
com
mis
sion
s. A
ll cr
edit
faci
litie
s gr
ante
d to
rel
ated
par
ties
are
with
in th
e no
rmal
cou
rse
of th
e ba
nks
oper
atio
n an
d no
prov
isio
n w
as ta
ken,
exc
ept f
or th
e be
low
:
91,2
50,0
17
73,9
02,4
98
2,43
2,99
8 -
162,
719,
517
102,
527,
791
45,8
54,2
92
9,01
8,27
5
2,38
3,26
8
136,
980,
540
100
10,0
00,0
0010
,000
,000
905,
000,
000
5,00
0,00
0
943,
000,
000
3,00
0,00
0
100
30,
000
30,0
00
Jord
an T
rade
Fac
ilitie
s Co
mpa
ny
Trad
e Fa
cilit
ies
Com
pany
for
Fina
nce
leas
ing
94.7
16,5
00,0
00-
94.7
2,00
0,00
0-
An
nual
Rep
ort
34th
The
follo
win
g re
pres
ents
a s
umm
ary
of tr
ansa
ctio
ns w
ith r
elat
ed p
artie
s:
Fina
ncia
l Pos
ition
Sta
tem
ent I
tem
s:
Cred
it fa
cilit
ies
Prov
isio
n fo
r im
pair
men
t in
cred
it fa
cilit
ies
Dep
osits
, cur
rent
acc
ount
s an
d ca
sh m
argi
n
Off
-Fin
anci
al P
ositi
on
Stat
emen
t Ite
ms:
Lett
ers
of g
uara
ntee
Lett
ers
of c
redi
t
Stat
emen
t of i
ncom
e
Inte
rest
and
com
mis
sion
s re
ceiv
ed
Inte
rest
and
com
mis
sion
s pa
id
Prov
isio
n fo
r im
pair
men
t in
cred
it fa
cilit
ies
Addi
tiona
l Inf
orm
atio
n
Wat
ch li
st c
redi
t fac
ilitie
s
Prov
isio
n fo
r W
atch
list
cr
edit
faci
litie
s
Non
-per
form
ing
cred
it fa
cilit
ies
Pro
visi
on fo
r no
n-pe
rfor
min
g cr
edit
faci
litie
s
Inte
rest
in s
uspe
nse
*Su
ch b
alan
ces
and
tran
sact
ions
are
elim
inat
ed in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
and
are
sho
wfo
r ex
plan
ator
y pu
rpos
es o
nly.
Exec
utiv
e m
anag
emen
t sal
arie
s an
d be
nefit
s am
ount
ed to
JD
2,6
45,7
38 fo
r th
e ye
ar e
nded
31
Dec
embe
r 20
16
agai
nst J
D 2
,529
,196
for
the
year
201
5
Max
imum
cre
dit i
nter
est r
ate
in J
orda
nian
din
ars
2
1 M
inim
um c
redi
t int
eres
t rat
e in
Jor
dani
an d
inar
s 2.
75
Max
imum
cre
dit i
nter
est r
ate
in o
ther
cur
renc
ies
4
Min
imum
cre
dit i
nter
est r
ate
in o
ther
cur
renc
ies
3
Max
imum
deb
it in
tere
st r
ate
in J
orda
nian
din
ars
4.2
5M
inim
um d
ebit
inte
rest
rat
e in
Jor
dani
an d
inar
s
0
Max
imum
deb
it in
tere
st r
ate
in o
ther
cur
renc
ies
M
inim
um d
ebit
inte
rest
rat
e in
oth
er c
urre
ncie
s
0
Max
imum
cre
dit c
omm
issi
on r
ate
0.1
M
inim
um c
redi
t com
mis
sion
rat
e
6,70
0,32
64,
148,
205
43,5
85,7
5454
,434
,285
44,8
91,3
27
- -
--
5,07
9,61
8
990,
679
2,83
0,20
832
,968
,517
36,7
89,4
0424
,541
,295
- -
1
40,2
6314
0,26
319
,163
1,36
4,62
591
1,40
27,
298,
477
9,57
4,50
49,
993,
374
306,
062
302,
852
6,46
9,02
47,
077,
938
2,61
4,30
0
94,9
3942
,715
177,
180
314,
834
703,
801
- -
(5,0
79,6
18)
(5,0
79,6
18)
3,56
5,62
1
- -
-
-
-
-
-
- -
-
- -
-
- -
1,45
7,64
4
- -
606,
998
-
11,4
96,0
28
-
4,47
2,62
0
-
3,96
9,63
0
Gene
ral f
ram
ewor
k of
ris
k m
anag
emen
t
The
bank
has
iden
tified
con
trol
leve
ls (d
efen
se li
nes)
by
plac
ing
the
fram
ewor
k fo
r th
e fo
llow
ing
cont
rol l
evel
s as
follo
ws:
•B
usin
ess
units
: rep
rese
nts
empl
oyee
s th
at a
re p
art o
f firs
t lin
e de
fens
e, w
hich
res
pons
ible
for
risk
man
agem
ent a
nd r
elat
edco
ntro
l pro
cedu
res.
•In
depe
nden
t ris
k m
anag
emen
t fun
ctio
n: th
e em
ploy
ees
of r
isk
man
agem
ent d
epar
tmen
t rep
rese
nt th
e se
cond
line
def
ense
by m
akin
g th
em r
espo
nsib
le o
ver
arra
ngin
g ri
sk m
anag
emen
t effo
rts
and
faci
litat
ing
the
supe
rvis
ion
proc
ess
over
the
impl
emen
ted
proc
edur
es fr
om th
e ba
nk.
•Co
mpl
ianc
e D
epar
tmen
t: th
e em
ploy
ees
of c
ompl
ianc
e de
part
men
t rep
rese
nt a
noth
er p
art i
n th
e se
cond
line
def
ense
by
assu
re o
f com
plyi
ng w
ith th
e im
plem
ente
d pr
oced
ures
, law
s an
d re
gula
tions
.
•In
tern
al a
udit:
Inte
rnal
aud
it em
ploy
ees
repr
esen
t the
thir
d lin
e de
fens
e, a
nd th
ey a
re r
espo
nsib
le fo
r pe
rfor
min
g an
inde
pend
ent r
evie
w fo
rco
ntro
l pro
cedu
res
and
syst
ems
that
are
rel
ated
to r
isk
man
agem
ent a
t the
ban
k le
vel.
In a
dditi
on, t
he B
ank
had
esta
blis
hed
a ri
sk m
anag
emen
t com
mitt
ee fr
om th
e bo
ard
of d
irec
tors
in o
rder
to m
anag
e th
e ri
sks
that
the
bank
is e
xpos
ed to
. Th
ese
risk
s ar
e m
anag
ed to
miti
gate
d th
e im
pact
of t
hese
ris
ks to
ens
ure
prop
er a
lignm
ent w
ith
the
bank
str
ateg
y
The
Ris
k M
anag
emen
t Com
mitt
ee's
task
s ar
e as
follo
ws:
A.To
sup
ervi
se th
e m
anag
emen
t of t
he r
isk
polic
y an
d en
sure
that
the
Ris
k M
anag
emen
t and
Com
plia
nce
Dep
artm
ent
achi
eves
its
obje
ctiv
es a
ccor
ding
to th
e ap
prov
ed p
olic
ies.
B.T
o en
sure
app
ropr
iate
and
suf
ficie
nt s
uppo
rt fo
r th
e R
isk
Man
agem
ent a
nd C
ompl
ianc
e D
epar
tmen
t in
achi
evin
g its
obje
ctiv
es in
acc
orda
nce
with
the
appr
oved
pol
icie
s an
d pr
oced
ures
and
the
Cent
ral B
ank'
s in
stru
ctio
ns.
C.To
ens
ure
the
avai
labi
lity
of w
ork
proc
edur
es fo
r ri
sk m
anag
emen
t in
com
plia
nce
with
the
vari
ous
man
agem
ent r
isk
polic
ies
at th
e B
ank.
D.T
o en
sure
the
use
of th
e ne
w te
chni
ques
and
met
hod
of m
anag
emen
t and
ass
essm
ent o
f ris
k m
anag
emen
t.
E.To
iden
tify
basi
s an
d pr
inci
ples
of r
isk
man
agem
ent a
nd r
isk
acce
ptan
ce, r
isk
tran
sfer
, ris
k re
fuse
and
ris
k m
itiga
tion.
F.To
rev
iew
the
peri
odic
al r
epor
ts o
f the
Ris
k M
anag
emen
t and
Com
plia
nce
Dep
artm
ent.
G.T
o en
sure
that
the
Ban
k ad
here
s to
the
Cent
ral B
ank
of J
orda
n in
stru
ctio
ns.
H.T
o re
view
the
inte
rnal
cal
cula
tion
of c
apita
l ade
quac
y fo
r th
e ba
nk a
nd p
rese
nt it
to th
e bo
ard
of d
irec
tors
, tak
ing
inco
nsid
erat
ion
the
bank
str
ateg
ies
and
plan
s.
I.En
sure
the
inde
pend
ency
of t
he r
isk
depa
rtm
ent.
The
Ris
k M
anag
emen
t and
Com
plia
nce
Com
mitt
ee h
ave
set t
he r
isk
man
agem
ent f
ram
ewor
k fo
r th
e B
ank.
Mor
eove
r, th
e B
oard
of D
irec
tors
has
est
ablis
hed
the
Ris
k M
anag
emen
t and
Com
plia
nce
Com
mitt
ee, f
orm
ed b
y th
e B
oard
mem
bers
and
ex
ecut
ive
man
agem
ent.
Its o
bjec
tive
is to
mon
itor
and
cont
rol t
he v
ario
us r
isks
(cre
dit r
isks
, ope
ratin
g ri
sks,
mar
ket r
isks
and
co
mpl
ianc
e ri
sks)
or
any
othe
r ri
sks
the
Ban
k m
ight
be
expo
sed
to.
The
depa
rtm
ent m
anag
es th
e B
ank'
s va
riou
s ri
sks
(cre
dit r
isk,
ope
ratin
g ri
sk, m
arke
t ris
k, c
ompl
ianc
e ri
sk, a
nd o
ther
ris
ks)
with
in th
e ge
nera
l fra
mew
ork
of r
isks
man
agem
ent.
The
role
of t
he d
epar
tmen
t can
be
sum
mar
ized
as
follo
ws:
•R
isk
Iden
tifica
tion.
•R
isk
Asse
ssm
ent.
•R
isk
Cont
rol /
Miti
gatio
n.•
Ris
k M
onito
ring
.
The
Ban
k m
anag
ed to
pre
pare
the
requ
ired
pla
ns a
nd a
ctio
n po
ints
to e
nsur
e th
e co
mpl
ianc
e w
ith th
e Ce
ntra
l Ban
k of
Jor
dan
inst
ruct
ions
rel
ated
to (B
asel
III)
and
inte
rnal
cap
ital a
dequ
acy
asse
ssm
ent p
roce
ss.
An
nual
Rep
ort
34th
Cred
it ri
sks
are
defin
ed a
s th
e pr
obab
ility
of n
ot fu
lly r
ecov
erin
g th
e de
bt o
r in
tere
st in
the
spec
ified
tim
e ca
usin
g fin
anci
al lo
sses
to th
e B
ank.
Mor
eove
r, c
redi
t ris
k re
pres
ents
the
maj
or p
ortio
n ba
nks
are
expo
sed
to in
gen
eral
. In
reco
gniti
on o
f thi
s re
ality
, the
Ban
k ha
s ac
cord
ed c
redi
t ris
k m
anag
emen
t gre
at s
igni
fican
ce th
roug
h m
anag
ing
cred
it ri
sks
at
the
port
folio
leve
l, ec
onom
ic s
ecto
r le
vel,
grou
p le
vel,
or s
ingl
e cu
stom
er le
vel,
taki
ng in
to c
onsi
dera
tion
the
achi
evem
ent o
f an
appr
opri
ate
retu
rn o
n th
e ri
sks
the
Ban
k is
exp
osed
to.
To a
chie
ve th
is, b
ased
on
the
risk
man
agem
ent s
trat
egy,
the
Ban
k ha
s pe
rfor
med
the
follo
win
g:
1.Th
e ri
sk a
ppet
ite a
nd c
eilin
gs a
re b
ased
on
cred
it ri
sk c
omm
ensu
rate
with
the
acce
ptab
le r
isk
limits
adop
ted
by th
e B
oard
of D
irec
tors
and
Ris
ks a
nd C
ompl
ianc
e D
epar
tmen
t. R
isk
limits
are
set
for
each
clie
nt,
grou
p an
d ec
onom
ic s
ecto
r, in
ord
er to
miti
gate
the
Ban
k's
expo
sure
to c
redi
t ris
k co
ncen
trat
ions
.
2.Th
e ba
nk im
plem
ente
d a
cred
it ri
sk r
atin
g sy
stem
from
Moo
dy’s
com
pany
for
Corp
orat
e an
d re
tail
com
pani
es, t
his
will
impa
ct o
n th
e qu
ality
of c
redi
t por
tfol
io a
nd w
ill h
elp
in ta
king
the
appr
opri
ate
cred
itde
cisi
ons.
3.Cr
edit
risk
is m
itiga
ted
thro
ugh
cred
it ri
sk fa
ctor
s (c
olla
tera
ls s
uch
as r
eal e
stat
e, s
hare
s or
oth
er)
com
men
sura
te w
ith th
e cr
edit
risk
face
d by
the
Ban
k to
cov
er a
ny u
nexp
ecte
d su
bseq
uent
eve
nts.
4.Pr
oper
lega
l and
cre
dit d
ocum
enta
tion
is a
pplie
d fo
r al
l con
ditio
ns a
ssoc
iate
d w
ith th
e cr
edit
faci
litie
s.
1.Cr
edit
risk
exp
osur
e (l
ess
the
impa
irm
ent p
rovi
sion
and
inte
rest
in s
uspe
nse
and
befo
regu
aran
tees
and
oth
er r
isk
- m
itiga
ting
fact
ors)
:
On
finan
cial
pos
ition
sta
tem
ent i
tem
s:
Bal
ance
s at
the
cent
ral b
ank
of J
orda
n80
,495
,887
7,14
1,47
2
95,7
27,9
74
190,
244
73,8
86
7,33
4,65
7
851,
811
1,46
3,92
2
10,6
36,9
38
123,
156,
774
8,89
3,36
4
1,71
0,43
5
112,
552,
975
-
118,
986,
354
258,
812
41,4
51
3,53
4,94
3
20,6
29
472,
328
1,69
9,34
3
124,
713,
597
1,01
9,07
7
626,
434
123,
068,
086
5,10
8,32
0
299,
363,
259
7,01
2,85
4
3,29
9,29
9
3,44
9,59
5
685,
191
10,2
90,1
26
8,03
5,54
9
326,
932,
040
10,0
81,1
95
2,83
4,88
8
314,
015,
957
777,
328
13,3
71,0
09
129,
216
82,5
69
1,69
1,83
6
34,3
68
686,
488
3,63
2,89
9
20,1
93,9
28
3,32
1,06
0
1,16
0,48
2
15,7
12,3
86
180,
591,
968 - - - - - - -
180,
591,
968 - -
180,
591,
968
-
79,4
02,4
98 - - - - - -
79,4
02,4
98 - -
79,4
02,4
98
193,
619,
088
606,
851,
094
7,59
1,12
6
3,49
7,20
5
16,0
11,0
31
1,59
1,99
9
12,9
12,8
64
24,0
04,7
29
854,
990,
805
23,3
14,6
96
6,33
2,23
9
825,
343,
870
93,5
81,9
93
Bal
ance
s at
ban
ks a
nd fi
nanc
ial i
nstit
utio
ns73
,902
,498
45,8
54,2
92
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
5,50
0,00
05,
000,
000
Cred
it fa
cilit
ies:
Indi
vidu
als
112,
552,
975
65,6
31,1
58
Rea
l est
ate
loan
s 12
3,06
8,08
611
5,10
9,89
6
Com
pani
es
Corp
orat
e 28
7,27
2,63
526
2,90
0,43
7
Smal
l and
med
ium
inst
itutio
ns (S
MEs
)
Gov
ernm
ent a
nd p
ublic
sec
tor
15,7
12,3
8611
,062
,777
120,
143,
870
119,
079,
954
24,2
03-
Bon
ds, b
ills
and
debe
ntur
es:
Tota
l on
finan
cial
sta
tem
ent i
tem
s
Tota
l on
finan
cial
sta
tem
ent i
tem
s
Tota
l on
and
off fi
nanc
ial s
tate
men
t ite
ms
Fina
ncia
l ass
ets
at a
mor
tized
cos
t
6,67
1,33
08,
212,
868
Oth
er a
sset
s
Off
fina
ncia
l pos
ition
sta
tem
ent i
tem
s:
Lett
ers
of g
uara
ntee
78
,223
,226
73,7
77,3
85
Lett
ers
of c
redi
t 7,
613,
523
Lett
ers
of a
ccep
tanc
e 8,
438,
672
3,18
6,94
1
Unu
tilis
ed fa
cilit
y lim
its
28,6
34,4
0717
,312
,891
122,
909,
828
108,
039,
058
948,
253,
698
834,
472,
433
To m
itiga
te th
e ab
ove
cred
it ri
sk e
xpos
ures
, the
Ban
k us
es th
e fo
llow
ing
risk
miti
gatin
g fa
ctor
s w
ithin
the
cond
ition
s of
the
cred
it po
licy
set b
y th
e B
ank:
1.Ca
sh c
olla
tera
ls.
2.Ac
cept
ed b
ank
guar
ante
e.3.
Rea
l est
ate
mor
tgag
es.
4.Li
sted
sha
res
colla
tera
ls.
5.Ve
hicl
es a
nd e
quip
men
t mor
tgag
es.
6.Fi
nanc
ial i
nven
tori
es c
olla
tera
ls
2.C
redi
t exp
osur
es a
ccor
ding
to th
e de
gree
of r
isk:
31 D
ecem
ber
2016
Low
ris
k
Acce
ptab
le r
isk
Of w
hich
is d
ue:*
with
in 3
0 da
ys
from
31
to 6
0 da
ys
Wat
ch li
st
Non
-per
form
ing:
Subs
tand
ard
Dou
btfu
l
Bad
deb
t
Tota
l
Less
: Im
pair
men
t
prov
isio
n
Inte
rest
in
susp
ense
Net
-Cr
edit
expo
sure
s (fi
nanc
ial a
sset
s an
d in
vest
men
ts in
fina
ncia
l ass
ets)
are
dis
trib
uted
acc
ordi
ng to
tcr
edit
clas
sific
atio
n as
follo
ws
(AAA
to A
A-)
- 1
3,05
5,16
0
(A+
TO
A-)
10
,321
,525
(BB
B+
TO B
-)
-
16,7
75,4
86
(B
B+
to B
-)
180
,591
,968
10
,325
Less
than
(B-)
not
cla
ssifi
ed-
Not
cla
ssifi
ed-
39
,240
,002
180,
591,
968
79,4
02,4
98
825,
343,
870
726,
433,
375
13,7
61,8
41
An
nual
Rep
ort
34th
-
31 D
ecem
ber
2015
Low
ris
k 3,
115,
952
12,3
447,
690,
456
188,
206
182,
017,
094
-
193
,024
,052
Acce
ptab
le r
isk
61,2
75,2
7311
4,24
9,92
828
4,23
0,94
710
,246
,897
-
50
,854
,292
520,
857,
337
Of w
hich
is d
ue:*
with
in 3
0 da
ys
191,
672
194,
323
8,09
0,81
892
,943
-
-
8,5
69,7
56
from
31
to 6
0 da
ys
71,
437
71,8
244,
830,
117
150,
887
-
-
5,
124,
265
Wat
ch li
st
997,
518
536,
744
5,14
6,49
21,
989,
653
-
-
8,
670,
407
Non
-per
form
ing:
Subs
tand
ard
146,
192
17,1
8830
0,72
51,
339
-
-
46
5,44
4
Dou
btfu
l 65
4,92
627
,464
316,
341
65,2
25
-
1,
063,
956
Bad
deb
t 5,
858,
516
3,14
7,55
320
,122
,594
3,58
2,91
9
-
3
2,71
1,58
2
72,0
48,3
7711
7,99
1,22
131
7,80
7,55
516
,074
,239
182,
017,
094
50,8
54,2
9275
6,79
2,77
8
Less
: Im
pair
men
t
prov
isio
n 4,
416,
993
1,22
0,20
99,
867,
535
3,77
3,10
9
-
-
1
9,27
7,84
6
Inte
rest
in
susp
ense
2,
000,
226
1,66
1,11
66,
181,
862
1,23
8,35
3
-
-
1
1,08
1,55
7
Net
65
,631
,158
115,
109,
896
301,
758,
158
11,0
62,7
7718
2,01
7,09
4
50
,854
,292
726,
433,
375
-Cr
edit
expo
sure
s (fi
nanc
ial a
sset
s an
d in
vest
men
ts in
fina
ncia
l ass
ets)
are
dis
trib
uted
acc
ordi
ng to
tcr
edit
clas
sific
atio
n as
follo
ws
(AAA
to A
A-)
- 5,
507,
713
(A+
TO
A-)
-
11,7
33,3
59
(BB
B+
TO B
-)
- 7,
534,
525
(B
B+
to B
-)
182,
017,
094
18,0
10,3
37
Less
than
(B-)
not
cla
ssifi
ed-
-
N
ot c
lass
ified
-
8,
068,
358
*Th
e w
hole
deb
t bal
ance
bec
omes
due
whe
n on
e of
the
inst
allm
ents
or
inte
rest
is d
ue. M
oreo
ver,
the
over
draf
t acc
ount
bec
omes
due
whe
neve
r it
exce
eds
the
ceili
ng.
Cre
dit e
xpos
ures
incl
ude
cred
it fa
cilit
ies,
bal
ance
s an
d de
posi
ts a
t ban
ks in
add
ition
to fi
nanc
ial a
sset
s.
2016
Guar
ante
es a
gain
st:
Low
ris
k 7,
141,
472
-5,
108,
320
777,
328
13,0
27,1
20
Acce
ptab
le r
isk
59,6
53,6
5411
6,13
3,85
413
7,85
6,36
41,
363,
547
315,
007,
419
wat
ch li
st
--
6,44
2-
6,44
2
Non
-per
form
ing:
Subs
tand
ard
250
-85
,654
-85
,904
Dou
btfu
l 89
1,20
0,25
6-
191,
200,
364
Bad
deb
t 48
7,92
02,
664,
838
4,23
4,06
61,
137,
623
8,52
4,44
7
67,2
83,3
8511
9,99
8,94
814
7,29
0,84
63,
278,
517
337,
851,
696
Of i
t:
Cash
mar
gins
7,
275,
581
52,0
005,
123,
207
777,
328
13,2
28,1
16
Rea
l est
ate
47,2
35,4
5011
9,94
6,94
813
7,74
8,57
91,
450,
000
306,
380,
977
Trad
e st
ocks
6,
073,
742
165
,513
-6,
239,
255
Vehi
cles
and
equ
ipm
ent
6,69
8,61
2 4
,253
,547
1,05
1,18
912
,003
,348
67,2
83,3
8511
9,99
8,94
814
7,29
0,84
63,
278,
517
337,
851,
696
2015
Guar
ante
es a
gain
st:
Low
ris
k 3,
115,
952
12,3
447,
690,
456
188,
206
11,0
06,9
58
Acce
ptab
le r
isk
99,6
56,9
847,
002,
125
wat
ch li
st
482,
547
536,
744
3,02
1,45
41,
222,
547
5,26
3,29
2
Non
-per
form
ing:
Subs
tand
ard
--
97,7
4497
,744
Dou
btfu
l 10
873
,060
809
73,9
77
Bad
deb
t 35
2,00
18,
642,
589
15,0
90,6
391,
706,
942
25,7
92,1
71
42,6
70,6
2110
8,92
1,72
118
7,42
3,31
610
,119
,820
349,
135,
478
Of i
t:
Cash
mar
gins
3,
167,
953
12,3
447,
690,
456
188,
206
Rea
l est
ate
31,6
69,1
4810
8,90
9,37
716
6,54
7,34
29,
024,
560
316,
150,
427
Trad
e st
ocks
5,
214,
568
12,5
47,6
9862
2,78
418
,385
,050
Vehi
cles
and
equ
ipm
ent
2,6
18,9
52 6
37,8
2028
4,27
03,
541,
042
42,6
70,6
2110
8,92
1,72
118
7,42
3,31
610
,119
,820
349,
135,
478
The
follo
win
g ta
ble
brea
ks d
own
the
fair
val
ue o
f col
late
rals
hel
d as
sec
urity
for
cred
it fa
cilit
ies:
Gua
rant
ees
fair
val
ue a
re e
valu
ated
whe
n th
e fa
cilit
ies
are
gran
ted
base
d on
acc
epta
ble
eval
uatio
n m
etho
ds fo
r th
ese
guar
ante
es, i
n th
e su
bseq
uent
per
iods
the
fair
val
ue is
upd
ated
to m
arke
t pri
ces
or
rela
ted
asse
ts p
rice
s.
182,
017,
094
50,8
54,2
92
An
nual
Rep
ort
34th
- - --
- -
20,0
71,9
9220
,071
,992
100,
071,
878
100,
071,
878
-
120,
143,
870
120,
143,
870
Deposits at banks and financial institutions5,500,000- - - - 5,500,000
Direct credit facilities:
Individuals 112,552,975- - - - 112,552,975
Real estate loans 123,068,086- - - - 123,068,086
Companies:
Corporate 287,272,635- - - - 287,272,635
Small and medium institutions 15,712,386-
-
-
-
15,712,386
Government and Public sector24,203 - - 24,203
Bonds, bills and debentures:
Financial assets at amortized cost
Other assets
- - -
Total /the current year 2016 771,967,9618,548,79632,023,51810,32512,785,2538,017825,343,870
679,287,4636,967,20236,163,48610,3353,852,511152,378726,433,375
110,971,8783,477,5425,694,450
Total / comparative figures 2015
4.Credit risk exposure according to geographic area as follows:
Balances at Central Bank of Jordan 80,495,887- - - - 80,495,887
Balances at banks and financial institutions29,698,5815,071,25426,329,06810,32512,785,2538,01773,902,498
*Excluding Middle East Countries.
Res
ched
uled
Loa
ns
Thes
e lo
ans
are
loan
s pr
evio
usly
cla
ssifi
ed a
s no
n-pe
rfor
min
g cr
edit
faci
litie
s bu
t tak
en o
ut th
ere
from
ac
cord
ing
to p
rope
r re
sche
dulin
g. T
hey
have
bee
n cl
assi
fied
as "
debt
s un
der
cont
rol (
wat
ch li
st)"
or
chan
ged
to p
erfo
rmin
g an
d am
ount
ed to
JD
11,
650,
355
as o
f 31
Dec
embe
r 20
16 a
gain
st J
D 2
,182
,339
for
the
year
20
15
Res
truc
ture
d Lo
ans
Res
truc
turi
ng m
eans
rea
rran
ging
cre
dit f
acili
ties
inst
allm
ents
thro
ugh
incr
easi
ng th
eir
dura
tion,
pos
tpon
ing
som
e in
stal
lmen
ts, o
r in
crea
sing
the
grac
e pe
riod
. Res
truc
ture
d de
bts
amou
nted
to J
D 3
1,05
9,83
9 fo
r th
e ye
ar 2
016
agai
nst J
D 3
6,14
7,09
8 fo
r th
e ye
ar 2
015.
Bon
ds, B
ills,
and
Deb
entu
res
The
follo
win
g ta
ble
illus
trat
es th
e cl
assi
ficat
ion
of b
onds
, bill
s, a
nd d
eben
ture
s ac
cord
ing
to e
xter
nal r
atin
g in
stitu
tions
:
-30
,644
,853
30,6
44,8
53
-88
,435
,101
88,4
35,1
01
-11
9,07
9,95
411
9,07
9,95
4
-
-
-
-
- - 120,143,870
6,671,330--- - 6,671,330
An
nual
Rep
ort
34th
-
-
-
-
-
-
-
-
-
Financial assets at amortised cost
Other assets 3,207,344770,0752,693,911- 6,671,330
5.Credit exposure according to economic sectors as follows:
Item
Deposits at banks and financial institutions 5,500,000 - - - - - - 5,500,000
Credit facilities 49,099,34871,677,386179,380,94173,616,717753,69112,531,033151,546,966 538,630,285 24,203
- - - - - 80,495,887 80,495,887
Balance at banks and financial institutions 73,902,498 - - - - - 73,902,498
17,923,916 - 100,071,878 120,143,870
Total / comparative figures
2,148,076- - -
- -
Ope
ratio
nal r
isk
is d
efine
d as
the
risk
of l
oss
resu
lting
from
inad
equa
te o
r fa
iled
proc
esse
s, p
eopl
e an
d sy
stem
s or
from
ext
erna
l eve
nts.
Thi
s de
finiti
on in
clud
es le
gal r
isk.
Inve
stm
ent b
ank
has
impl
emen
ted
a Co
ntro
l and
Ris
k Se
lf-As
sess
men
t pro
cess
for
the
man
agem
ent o
f ope
ratio
nal r
isk
at th
e B
ank
thro
ugh
the
use
of a
n au
tom
ated
sys
tem
nam
ed C
ARE.
Th
e B
ank
man
ages
ope
ratio
nal R
isk
on th
e ba
sis
of th
e fo
llow
ing:
-Pr
epar
atio
n of
ope
ratio
nal r
isk
polic
y.-
Prep
arat
ion
of O
pera
tiona
l Ris
k Ac
coun
tabi
lity
Polic
y an
d ap
prov
ed b
y ba
nk b
oard
of d
irec
tors
.-
Impl
emen
t ris
k pr
ofile
that
det
erm
ine
risk
s an
d th
e m
itiga
ting
cont
rols
for
thes
e ri
sks
for
the
bank
s m
ain
depa
rtm
ents
.-
Impl
emen
t aut
omat
ic s
yste
m fo
r op
erat
ion
risk
man
agem
ent (
CAR
E sy
stem
) to
impl
emen
tse
lf-as
sess
men
t met
hodo
logy
for
risk
s an
d co
ntro
ls p
roce
dure
.-
Bui
ld d
atab
ase
for
risk
s ev
ents
and
ope
ratio
nal e
rror
s.-
Expr
ess
an o
pini
on o
ver
wor
king
pro
cedu
re to
eva
luat
e th
e ri
sks
in it
and
the
adeq
uacy
of t
hese
impl
emen
ted
cont
rol p
roce
dure
s.-
Rep
ortin
g to
the
Boa
rd R
isk
Man
agem
ent C
omm
ittee
and
the
Exec
utiv
e R
isk
Man
agem
ent
Com
mitt
ee w
ith n
eede
d re
port
s.
Com
plia
nce
Ris
k
This
rep
rese
nts
the
risk
s th
at a
rise
from
the
prob
abili
ty th
at th
e B
ank
may
not
com
ply
with
(vio
late
/
tran
sgre
ss) t
he p
reva
iling
law
s, r
egul
atio
ns, i
nstr
uctio
ns, b
anks
law
s, a
nd c
ode
of e
thic
s is
sued
by
inte
rnat
iona
l
and
loca
l reg
ulat
ory
auth
oriti
es.
Com
plia
nce
with
the
regu
latio
ns a
nd p
reva
iling
law
s is
sued
by
the
regu
lato
ry a
utho
ritie
s re
pres
ents
one
of t
he
mos
t im
port
ant r
isks
whi
ch th
e B
ank
mig
ht b
e ex
pose
d to
, due
to th
e m
ajor
fina
ncia
l los
ses
resu
lting
from
the
viol
atio
n of
the
law
s an
d in
stru
ctio
ns th
at a
ffect
the
Ban
k's
repu
tatio
n. M
oreo
ver,
the
past
few
yea
rs w
itnes
sed
man
y ne
w r
egul
atio
ns, i
nstr
uctio
ns a
nd la
ws
orga
nizi
ng th
e w
ork
of th
e va
riou
s in
stitu
tions
. Acc
ordi
ngly
, the
need
for
man
agin
g th
e co
mpl
ianc
e ri
sk o
f the
Ban
k is
nec
essa
ry. M
oreo
ver,
com
plia
nce
enha
nces
the
effic
ienc
y
of m
anag
ing
risk
s an
d de
crea
ses
the
risk
the
Ban
k m
ight
be
expo
sed
to a
s a
resu
lt of
non
com
plia
nce
with
the
prev
ailin
g la
ws
and
inst
ruct
ions
.
An
nual
Rep
ort
34th
-
-
-
- -
-
Total /
C/-1
Inte
rest
Rat
e R
isk:
-Se
nsiti
vity
ana
lysi
s:
31 D
ecem
ber
2016
31 D
ecem
ber
2015
C/-2
For
eign
cur
renc
ies
risk
31 D
ecem
ber
201
31 D
ecem
ber
201
(80,
698)
(9,7
19)
(2,7
14)
868
(20,
341)
80,6
98
9,71
9
2,71
4
(868
)
20,3
41
(14,
205)
687
1,87
1
4,00
8
(58,
197)
(1,8
71)
(687
)
(4,0
08)
58,1
97
14,2
05
(4,6
76)
(10,
020)
(31,
717)
35,5
12
(24,
298)
22,0
32
(6,7
85)
2,16
9
(50,
852)
An
nual
Rep
ort
34th
This
rep
rese
nts
the
risk
res
ultin
g fr
om th
e de
clin
e in
the
fair
val
ue o
f the
inve
stm
ent p
ortf
olio
of t
he s
hare
s
If th
ere
is a
neg
ativ
e ch
ange
in th
e ef
fect
will
be
equa
l with
neg
ativ
e ef
fect
.
due
to th
e ch
ange
s in
the
valu
e of
the
shar
es in
dica
tors
and
the
chan
ge in
the
valu
e of
sha
res
indi
vidu
ally
.
C/-3
Ris
ks o
f Cha
nges
in S
hare
s Pr
ices
:
(25,
476)
(80,
930)
(1,0
31,8
16)
(66,
581)
(123
,500
)
-
(21,
760)
(907
,987
)
(72,
277)
-
Inte
rnat
iona
l Sto
ck
Exch
ange
(106
,060
)(4
8,81
0)In
tern
atio
nal S
tock
Ex
chan
ge
The
Ban
k ad
opts
the
asse
ts-l
iabi
litie
s co
mpa
tibili
ty p
rinc
iple
and
the
suita
bilit
y of
mat
uriti
es to
nar
row
gap
s th
roug
h ca
tego
rizi
ng a
sset
s an
d lia
bilit
ies
into
var
ious
mat
uriti
es o
r pr
ice
revi
ew m
atur
ities
, whi
chev
er a
re
near
er, t
o lo
wer
ris
ks in
inte
rest
rat
es, s
tudy
ing
gaps
in th
e re
late
d in
tere
st r
ates
, and
usi
ng h
edgi
ng p
olic
ies
thro
ugh
the
adop
tion
of a
dvan
ced
finan
cial
inst
rum
ents
suc
h as
der
ivat
ives
.
31 December 2016Assets:Cash and balances at the Central Bank of Jordan 30,700,000 - - - - 60,550,017 91,250,017 Balance at banks and financial institutions 39,990,062 - - - - 29,012,436 73,902,498Deposits at banks and financial institutions - -500,000
- -
5,000,000Financial assets at fair value through statement of income - -
- -
-
5,500,000
50,169,08958,187,09460,563,64474,988,057166,810,632127,911,769 2,128,1162,128,116
Financial assets at fair value through othercomprehensive income
538,630,285 Direct credit facilities – net
Financial assets at amortised cost 6,417,53948,251,907 11,332,533
2,432,9982,432,998
29,625,8628,927,75015,588,279 120,143,870Property and equipment – net - -- -
- - -
- - -
- -
-7,857,886
28,573,60928,573,609Intangible assets - -
- -- -
3,003,4633,003,463Deferred tax assets 6,883,6156,883,615
Other assets 3,311,455 - 51,659,299Total assets LiabilitiesDeposits at banks and financial institutions- - - - - -
- -
- - -- -
- - -
Customers’ deposits Cash margins 38,094,827
Borrowed funds
152,53188,915,807 182,398,911176,163,676 94,000,961 74,419,627 206,248,469949,576,672 127,429,221
139,377,94651,015,51538,801,984 114,495,338 117,499,211177,958,846785,233,458 146,084,618(50,462,139)131,383,396137,361,692 (20,494,377) (43,079,584)28,289,623164,343,214 (18,655,397)
96,992,95421,624,96621,454,230 117,777,372 123,951,123166,330,896690,773,584 142,642,04395,878,855154,280,668129,994,266 73,166,436 69,595,176185,576,648845,419,891 136,927,842
(1,114,099)132,655,702108,540,036 (44,610,936) (54,355,947) 19,245,752154,646,307 (5,714,201)
102,830,96611,398,028 104,677,243 109,727,573153,426,582622,816,743 140,756,3516,753,2717,767,870 5,586,712 5,355,989 4,773,099
30,944,098 29,793,70931,849,617 4,231,383 2,415,649 555,16899,789,624Sundry provisions - -- 710,086710,086
Income tax provision - - - 6,501,4546,501,454Deferred tax liabilities - - - 2,812,8502,812,850
Other liabilities - - - 12,074,87612,074,876Total liabilities Interest rate reporting gap 31 December 2015Total assets Total liabilities
Interest rate reporting gap
4,900,000
24,437,914 24,437,914 - - - - - -
An
nual
Rep
ort
34th
-
-
-
-
-
-
-
-
-
-
2016
Asse
ts
Cash
and
bal
ance
s at
the
Cent
ral B
ank
Bal
ance
s at
ban
ks a
nd fi
nanc
ial i
nstit
utio
ns
16,1
87,0
8519
,577
,896
6,32
6,99
235
,378
2,81
8,22
044
,945
,571
Dir
ect c
redi
t fac
ilitie
s36
,320
,891
15,0
22
440,
644
--
-
--
-
--
-
36,3
35,9
13
15,0
31,9
714,
969,
787
164,
376
-36
4,20
420
,530
,338
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
stat
emen
t of i
ncom
e 1,
434,
797
-
-
-
183,
793
1,61
8,59
0
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
3,36
0,96
83,
801,
612
Fina
ncia
l ass
ets
at a
mor
tised
cos
t-
31,9
79,3
5131
,979
,351
Oth
er a
sset
s 1,
646,
977
13,8
919,
303
9,21
527
2,03
71,
951,
423
105,
962,
040
25,0
17,2
406,
500,
671
44,5
933,
638,
254
141,
162,
798
430,
611
369,
736
36,6
5074
490,
766
1,32
7,83
7
101,
610,
816
20,8
69,1
456,
590,
337
1,12
94,
141,
157
133,
212,
584
7,84
3,71
32,
645,
139
9,15
21
23,2
8310
,521
,288
111,
804
1,61
9,18
623
3-
841,
731,
307
109,
996,
944
25,5
03,2
066,
636,
372
1,20
44,
655,
290
146,
793,
016
(4,0
34,9
04)
(485
,966
)(1
35,7
01)
43,3
89(1
,017
,036
)(5
,630
,218
)
31,1
66,6
994,
957,
260
-5,
109,
607
1,35
5,77
142
,589
,337
Tota
l ass
ets
Liab
ilitie
s:
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
Cust
omer
s' d
epos
its
Cash
mar
gins
Oth
er li
abili
ties
Tota
l Lia
bilit
ies
Net
Con
cent
ratio
n on
-Fin
anci
al P
ositi
on
2015
Asse
ts
Cash
and
bal
ance
s at
the
Cent
ral B
ank
Bal
ance
s at
ban
ks a
nd fi
nanc
ial i
nstit
utio
ns
7,72
0,94
611
,957
,087
3,83
6,09
252
94,
338,
880
27,8
53,5
34
Dir
ect c
redi
t fac
ilitie
s44
,586
,803
21,7
91 -
--
-
--
-
--
-
44,6
08,5
94
11,2
38,6
2648
3,78
525
3,71
7-
657,
980
12,6
34,1
08
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
stat
emen
t of i
ncom
e 2,
121,
192
-
--
-2,
121,
192
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
2,42
1,72
32,
421,
723
Fina
ncia
l ass
ets
at a
mor
tised
cos
t6,
567,
837
30,8
99,1
2837
,466
,965
Oth
er a
sset
s 2,
476,
974
37,6
1711
,194
8,95
566
,502
2,60
1,24
2
101,
465,
392
19,0
68,1
174,
101,
003
9,48
45,
063,
362
129,
707,
358
3,01
8,92
935
8,02
043
,432
582,
475
398,
212
4,40
1,06
8
89,0
02,0
7816
,166
,661
4,14
0,99
747
,449
3,92
4,52
611
3,28
1,71
1
6,35
5,23
41,
056,
229
9,83
913
,904
30,3
827,
465,
588
179,
247
1,68
7,60
326
0-
-1,
867,
110
98,5
55,4
8819
,268
,513
4,19
4,52
864
3,82
84,
353,
120
127,
015,
477
2,90
9,90
4(2
00,3
96)
(93,
525)
(6
34,3
44)
710,
242
2,69
1,88
1
34,4
22,4
923,
984,
733
4,63
815
2,34
42,
302,
549
40,8
66,7
56
Tota
l ass
ets
Liab
ilitie
s:
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
Cust
omer
s' d
epos
its
Cash
mar
gins
Oth
er li
abili
ties
Tota
l Lia
bilit
ies
Re
port
34t
h
(38/
D) L
IQU
IDIT
Y R
ISK
Firs
t: T
he fo
llow
ing
tabl
e ill
ustr
ates
the
dist
ribu
tion
of li
abili
ties
(und
isco
unte
d) o
n th
e ba
sis
of th
e re
mai
ning
pe
riod
to th
e co
ntra
ctua
l mat
urity
at t
he d
ate
of th
e fin
anci
al s
tate
men
ts.
31 D
ecem
ber
2016
Liab
ilitie
s D
epos
its a
t ban
ksan
d fin
anci
alin
stitu
tions
2,
432,
998
-
-
-
-
-
- 2,
432,
998
Cust
omer
s’ d
epos
its 1
99,8
71,9
40 1
37,0
87,7
2012
8,30
8,20
512
2,98
4,03
139
,364
,229
--
627
,616
,125
Cash
mar
gins
4,
779,
781
Bor
row
ed fu
nds
557,
768
Inco
me
tax
prov
isio
n 2,
084,
740
6,50
1,45
4
Defe
rred
tax
liabi
litie
s -
-
-
-
- -
2,
812,
850
2,81
2,85
0
Oth
er li
abili
ties
2,
577,
215
3,23
0,26
96,
267,
392
-
-
-
- 12
,074
,876
Tota
l lia
bilit
ies
212,
304,
442
152
,534
,557
144
,518
,056
Tota
l ass
ets
216,
991,
674
74,4
19,6
2794
,000
,961
Less
than
on
e m
onth
JDJD
JDJD
JDJD
JDJD
Mor
e th
an 1
m
onth
up
to
3 m
onth
s
Mor
e th
an 3
m
onth
up
to 6
mon
ths
Mor
e th
an 6
m
onth
up
to
1 ye
ar
From
1 y
ear
up to
3
yea
rs
Mor
e th
an
3 ye
ars
Non
-in
tere
st
bear
ing
item
sTo
tal
Seco
nd: O
ff fin
anci
al p
ositi
on s
tate
men
t
31 D
ecem
ber
2016
Lett
ers
of c
redi
t and
acc
epta
nces
16,0
52,1
95 1
6,05
2,19
5
Unu
tiliz
ed
28
,634
,407
-
28,
634,
407
Gua
rant
ees
69,3
74,0
938,
849,
133
78,
223,
226
Ope
ratin
g le
ase
cont
ract
liab
ilitie
s 64
2,72
82,
240,
688
1,44
5,74
84,
329,
164
Capi
tal l
iabi
litie
s 11
,804
- 1
1,80
4
114,
715,
227
11,0
89,8
2112
7,25
0,79
61,
445,
748
412,
070
1,12
3,26
487
8,05
22,
413,
386
195,
684
- -
195
,684
101,
318,
485
8,45
1,59
187
8,05
211
0,64
8,12
8
31 D
ecem
ber
201
Lett
ers
of c
redi
t and
acc
epta
nces
16,9
48,7
82 1
6,94
8,78
2
Unu
tiliz
ed
17
,312
,891
-
17,
312,
891
Gua
rant
ees
66,4
49,0
587,
328,
327
73,
777,
385
Ope
ratin
g le
ase
cont
ract
liab
ilitie
s
Capi
tal l
iabi
litie
s
(39)
S A
NAL
YSIS
a.In
form
atio
n on
the
bank
The
Ban
k is
org
aniz
ed, f
or m
anag
eria
l pur
pose
s, w
hich
mea
sure
d ac
cord
ing
to r
epor
ts u
sed
by g
ener
al
man
ager
and
dec
isio
n m
aker
s to
the
Ban
k in
to th
ree
maj
or
. Mor
eove
r, th
e B
ank
owns
thre
e su
bsid
iari
es: o
ne c
ondu
cts
finan
cial
bro
kera
ge, t
he o
ther
fina
ncia
l lea
se, a
nd th
e th
ird
bond
ed s
tore
s op
erat
ioan
d m
anag
emen
t.
-In
divi
dual
s ac
coun
ts: i
nclu
de fo
llow
ing
up o
n in
divi
dual
cus
tom
ers
acco
unts
, and
gra
ntin
g th
em lo
ans,
cre
dit,
cred
it ca
rds,
and
oth
er s
ervi
ces.
-Co
rpor
ate
acco
unts
: inc
lude
follo
win
g up
on
depo
sits
, cre
dit f
acili
ties,
and
oth
er b
anki
ng s
ervi
ces
rela
ted
tocu
stom
ers.
-Tr
easu
ry: i
nclu
des
prov
idin
g de
alin
g se
rvic
es a
nd m
anag
emen
t of t
he B
ank'
s fu
nds.
Up
to o
ne y
ear
JD
From
one
yea
r to
5 y
ears
Mor
e th
an
5 ye
ars
Tota
l
JDJD
JD
Liqu
idity
ris
k re
pres
ents
the
Ban
k’s
inab
ility
to m
eet o
blig
atio
ns o
n th
eir
mat
urity
dat
es. T
o w
ard
off t
hese
ri
sks,
incl
udin
g th
e m
anag
emen
t of a
sset
s an
d lia
bilit
ies,
mat
chin
g, a
nd a
naly
zing
thei
r m
atur
ities
, mat
chin
g th
e m
atur
ities
, div
ersi
fyin
g so
urce
of f
unds
, and
mai
ntai
ning
an
adeq
uate
fund
of c
ash
and
cash
equ
ival
ents
an
d m
arke
tabl
e se
curi
ties,
liqu
idity
is m
anag
ed a
nd r
evie
wed
per
iodi
cally
at d
iffer
ent l
evel
s,. A
ccor
ding
to
the
Cent
ral B
ank
of J
orda
n in
stru
ctio
ns, t
he B
ank
mai
ntai
ns c
ash
reve
rses
to m
itiga
te li
quid
ity r
isk.
5,36
7,23
75,
621,
908
6,83
8,36
27,
963,
620
8,25
3,92
3-
38,8
24,8
31
2,43
2,61
7
4,41
6,71
4
4,32
0,55
131
,049
,394
3
4,53
4,28
3 36
,160
,774
-10
9,05
5,38
7
-
710,
086
710,
086
160,
871,
787
81,8
62,1
3244
,414
,697
3,52
2,93
680
0,02
8,60
7
88,9
15,8
0718
2,39
8,91
117
6,16
3,67
611
6,68
6,01
694
9,57
6,67
2
Liab
ilitie
s D
epos
its a
t ban
ksan
d fin
anci
alin
stitu
tions
9,
028,
796
-
-
-
-
-
- 9,
028,
796
Cust
omer
s’ d
epos
its 2
71,4
04,2
57 1
16,8
20,2
8410
8,28
3,19
391
,413
,389
191,
111
--
58
8,11
2,23
4
Cash
mar
gins
3,
757,
534
Bor
row
ed fu
nds
2,05
4,78
6
Inco
me
tax
prov
isio
n 2,
483,
315
6,20
8,28
7
Defe
rred
tax
liabi
litie
s -
-
-
- -
-
2,07
3,43
3
2,07
3,43
3
Oth
er li
abili
ties
3,
127,
738
2,46
5,77
58,
242,
187
-
-
-
- 13
,835
,700
Tota
l lia
bilit
ies
291,
856,
426
130
,612
,694
127
,374
,692
Tota
l ass
ets
206,
620,
782
69,5
95,1
7673
,166
,436
5,81
4,38
04,
933,
377
5,23
1,16
86,
773,
719
6,27
5,25
7-
32,7
85,4
35
1,78
7,28
3
3,72
4,97
2
5,91
5,93
52,
440,
507
16
,023
,318
17,9
58,7
22-
46,1
80,5
51
1,08
2,09
01,
082,
090
99,0
85,0
64
22,9
88,1
48
24,2
33,9
79
3,15
5,52
3 69
9,30
6,52
6
95,8
78,8
55 1
54,2
80,6
68 12
9,99
4,26
6 11
5,88
3,70
8 84
5,41
9,89
1
31 D
ecem
ber
201
68
Annu
al R
epor
t 34
th
-
-
-
- - - -
Total liabilities
Gross income 11,151,32322,208,4766,951,7901,938,4471,882,1062,476,321491,06547,099,52839,200,482
524,220379,117--(7,182)(2,110)-894,0453,303,506
------423,239423,239(271,819)
11,675,54322,587,5936,951,7901,938,4471,874,9242,474,211914,30448,416,81242,232,169
---(433,180)(938,958)(1,599,717)(23,066,731)(26,038,586)(21,627,325)
11,675,54322,587,5936,951,7901,505,267935,966874,494(22,152,427)22,378,22620,604,844
---(358,958)(336,161)(209,879)(5,865,969)(6,770,967)(6,295,018)
11,151,32322,587,5936,951,7901,146,309599,805664,615(28,018,396)15,607,25914,309,826
168,382,795310,068,105311,876,81618,938,63060,786,08621,640,269-891,692,701764,388,062
------57,883,97157,883,97181,031,829
168,382,795310,068,105311,876,81618,938,63060,786,08621,640,26957,883,971949,576,672845,419,891
367,661,245294,241,00827,432,998882,58752,102,95816,428,251-758,749,047678,534,506
------26,484,41126,484,41112,239,078
367,661,245294,241,00827,432,998882,58752,102,95816,428,25126,484,411785,233,458690,773,584
2,070,64510,179,232
2,759,899
(Recovery) Sundry provisions
Results of business sector
Undistributed
expenditures on sectors
Profit for the before taxes
Income for the
assets
Undistributed assets on sectors
S liabilities
Capital expenditures
Depreciation and amortization 2,852,149
B-Information on the geographical distribution.The bank conducts its business and operations primarily in Jordan. Accordingly, most of the Bank’s revenues, assets and capital expenditures are inJordan.
Total
Total
a.D
escr
iptio
n of
Cap
ital
Acco
rdin
g to
the
Cent
ral B
ank
of J
orda
n La
w a
nd in
com
plia
nce
with
the
capi
tal a
dequ
acy
requ
irem
ents
, cap
ital
Provision for impairmenton direct credit facilities
cons
ists
of m
any
part
s:
•Ti
er o
ne: P
rim
ary
cons
ist o
f the
ban
ks g
oing
con
cern
, whi
ch in
clud
es:
1-Co
mm
on E
quity
Tie
r 1
2-Ad
ditio
nal p
aid
in c
apita
l Tie
r 1.
•Ti
er tw
o: P
rim
ary
cons
ist o
f the
pai
d in
cap
ital t
hat w
ill b
e us
ed w
hen
goin
g co
ncer
n is
sues
ari
se.
•Fo
r al
l thr
ee ty
pes
of p
aid
in c
apita
l (CE
T1, A
T1,T
2) s
peci
al s
tand
ards
that
the
finan
cial
inst
rum
ent m
ust
mee
t to
be c
lass
ified
in th
e ri
ght .
Addi
tiona
lly, t
he B
ank
com
plie
s w
ith A
rtic
le (6
2) o
f the
Ban
ks L
aw w
hich
req
uire
s th
e B
ank
to a
ppro
pria
te %
10
of it
s ne
t pro
fits
in th
e K
ingd
om a
nd c
ontin
ue to
do
so u
ntil
the
rese
rve
equa
ls th
e B
ank'
s pa
id-u
p ca
pita
l.
b.R
egul
ator
y Au
thor
ities
Req
uire
men
ts C
once
rnin
g Ca
pita
l and
Met
hod
of F
ulfil
ling
Them
.
The
Ban
k co
nsid
ers
the
com
patib
ility
of t
he s
ize
of c
apita
l with
the
natu
re o
f ris
ks it
is e
xpos
ed to
pro
vide
d th
at
paid
-up
capi
tal i
s no
t les
s th
an th
e m
inim
um r
equi
red
by th
e Ce
ntra
l Ban
k of
Jor
dan
and
regu
lato
ry c
apita
l, w
hich
is r
equi
red
to b
e:1-
For
com
mon
equ
ity T
ire
1, n
ot le
ss th
an 6
% o
f the
mar
ket r
isk-
wei
ghte
d as
sets
..2-
For
paid
in c
apita
l, no
t to
be le
ss th
an 7
.5%
of t
he m
arke
t ris
k-w
eigh
ted
asse
ts.
3-Fo
r ca
pita
l ade
quac
y ra
tio n
ot to
be
less
than
12%
of m
arke
t ris
k-w
eigh
ted
asse
ts.
c.H
ow to
Ach
ieve
the
Obj
ectiv
es o
f Cap
ital M
anag
emen
t
The
Ban
k's
man
agem
ent a
ims
at a
chie
ving
the
Ban
k's
capi
tal m
anag
emen
t obj
ectiv
es, a
sur
plus
in o
pera
ting
inco
me
and
reve
nues
, and
the
optim
al u
tiliz
atio
n of
the
avai
labl
e so
urce
s of
fund
s so
as
to r
each
the
targ
eted
gr
owth
in s
hare
hold
ers'
equ
ity th
roug
h th
e in
crea
se in
the
stat
utor
y re
serv
e, r
ecog
nize
d pr
ofits
, vol
unta
ry
rese
rve,
and
ret
aine
d ea
rnin
gs.
The
effe
ct o
f cap
ital a
dequ
acy
ratio
is ta
ken
into
con
side
ratio
ns w
hen
ente
ring
to in
vest
men
ts. M
oreo
ver,
ca
pita
l and
its
adeq
uacy
are
mon
itore
d pe
riod
ical
ly, a
nd c
apita
l ade
quac
y is
cal
cula
ted
by th
e R
isk
Man
agem
ent a
nd C
ompl
ianc
e D
epar
tmen
t.
Capi
tal r
isk
was
cal
cula
ted
base
d on
the
cent
ral b
ank
of J
orda
n re
gula
tions
, whi
ch is
rep
rese
nted
by
Bas
el II
I as
at 3
1 D
ecem
ber
2016
, and
Bas
el II
as
at 3
1 D
ecem
ber
2015
det
erm
inan
ts.
An
nual
Rep
ort
34th
Subs
crib
ed a
nd p
aid-
in c
apita
l
Prim
ary
capi
tal i
tem
s:
Tota
l cap
ital f
or c
omm
on s
tock
s
Mon
itori
ng c
hang
es (d
educ
tions
from
cap
ital)
:
Net
equ
ity
100,
000,
000
Stat
utor
y re
serv
e
Fina
ncia
ls a
sset
s fa
ir v
alue
res
erve
in a
ccor
ding
with
16,2
09,6
48R
etai
ned
earn
ings
(net
of r
estr
icte
d am
ount
s)
5,49
1,51
9
23,5
70,7
71
(3,0
03,4
63)
(6,8
83,6
15)
5,31
1,28
4
810,
256,
182
17.3
6
16.7
1
-
5,31
1,28
4
5,31
1,28
4
140,
696,
144-
145,
271,
938
135,
384,
860
Goo
dwill
or
any
inta
ngib
les
asse
ts
Def
erre
d ta
x as
sets
gen
erat
ed fr
om d
oubt
ful d
ebts
Inve
stm
ents
in th
e ca
pita
l of u
ncon
solid
ated
sub
sidi
arie
s
Tier
II o
f pai
d in
cap
ital:
Gen
eral
ban
king
ris
ks r
eser
ve (n
ot m
ore
than
%1,
25) o
f ris
k w
eigh
ted
asse
ts
Tota
l
Adju
stm
ents
(ded
uctio
ns fo
rm p
aid-
in c
apita
l):
Inve
stm
ents
in th
e ca
pita
l of u
ncon
solid
ated
sub
sidi
arie
s
Net
sup
port
ing
paid
-in
capi
tal (
Tier
II)
Tota
l Cap
ital S
truc
ture
Tota
l ris
k w
eigh
ted
asse
ts
Capi
tal a
dequ
acy
ratio
(%)
Com
mon
sto
ck e
quity
hol
ders
’ rat
io (%
)
Ther
e ar
e no
inve
stm
ent p
ortf
olio
s m
anag
ed b
y th
e B
ank
on b
ehal
f of c
usto
mer
s.
Subs
crib
ed a
nd p
aid-
in c
apita
l
Prim
ary
capi
tal i
tem
s:
Goo
dwill
or
any
inta
ngib
les
asse
ts a
nd d
efer
red
tax
asse
ts
Def
erre
d ta
x as
sets
gen
erat
ed fr
om d
oubt
ful d
ebts
pro
visi
ons
Fina
ncia
l ass
ets
fair
val
ue r
eser
ve in
acc
ordi
ng w
ith IF
RS
100,
000,
000
Stat
utor
y re
serv
e
Less
:
21,3
32,9
48
Ret
aine
d ea
rnin
gs (n
et o
f res
tric
ted
amou
nts)
13
,018
,133
(1,0
65,9
20)
125,
963,
321
18.2
1
17.4
8
131,
228,
079
(1,0
65,9
20)
5,26
4,75
8
720,
548,
304
(7,3
21,8
40)
1,72
7,62
9
4,60
3,04
9
Inve
stm
ents
ded
ucte
d fr
om c
apita
l by
%50
Tota
l pri
mar
y ca
pita
l
Addi
tiona
l Pai
d-in
Cap
ital
Gen
eral
ban
king
ris
ks r
eser
ve
Less
:
Inve
stm
ents
ded
ucte
d fr
om c
apita
l by
%50
Tota
l add
ition
al c
apita
l
Tota
l Cap
ital S
truc
ture
Tota
l ris
k w
eigh
ted
asse
ts
Capi
tal a
dequ
acy
ratio
(%)
Com
mon
sto
ck e
quity
hol
ders
’ rat
io (%
)
d.Th
e am
ount
the
Ban
k co
nsid
ers
as c
apita
l and
cap
ital a
dequ
acy
ratio
are
as
foll
ows:
An
nual
Rep
ort
34th
16.7
1 r
atio
(%)
The
tabl
e be
low
ana
lyse
s fin
anci
al in
stru
men
ts c
arri
ed a
t fai
r va
lue
by th
e va
luat
ion
met
hod.
The
diff
eren
tle
vels
hav
e be
en d
efine
d as
follo
ws
Leve
l 1 -
Quo
ted
(una
djus
ted)
mar
ket p
rice
s in
act
ive
mar
kets
for
iden
tical
fina
ncia
l ass
ets
or li
abili
ties
Leve
l 2 -
Val
uatio
n te
chni
ques
for
whi
ch th
e lo
wes
t lev
el in
put t
hat i
s si
gnifi
cant
to th
e fa
ir v
alue
mea
sure
men
t is
dire
ctly
or
indi
rect
ly o
bser
vabl
e m
arke
t dat
a.
Leve
l 3 -
Val
uatio
n te
chni
ques
for
whi
ch th
e lo
wes
t lev
el in
put t
hat i
s si
gnifi
cant
to th
e fa
ir v
alue
mea
sure
men
t is
unob
serv
able
. The
Ban
k ha
s ap
plie
d bo
ok v
alue
met
hod
whi
ch c
onsi
dere
d th
e be
st a
vaila
ble
met
hod
to m
easu
re fa
ir v
alue
of t
hese
inve
stm
ents
due
to d
ifficu
lty o
f fai
r va
lue
mea
sure
men
t.
The
follo
win
g ta
ble
illus
trat
es th
e an
alys
is o
f ass
ets
and
liabi
litie
s ac
cord
ing
to th
e ex
pect
ed p
erio
d of
thei
r re
cove
rabi
lity
or s
ettle
men
t:
Asse
ts:
Cash
and
bal
ance
s at
the
Cent
ral B
ank
91,2
50,0
17-
91,2
50,0
17
73,9
02,4
98- - -
73,9
02,4
98B
alan
ces
at b
anks
and
fina
ncia
l ins
titut
ions
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
5,50
0,00
05,
500,
000
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
stat
emen
t of i
ncom
e 2,
128,
116
2,12
8,11
6
243,
907,
884
294,
722,
401
538,
630,
285
Dir
ect c
redi
t fac
ilitie
s -
net
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
othe
r
com
preh
ensi
ve in
com
e -
24,4
37,9
1424
,437
,914
56,3
03,6
8463
,840
,186
120,
143,
870
2,04
5,12
326
,528
,486
530,
127
2,47
3,33
6
28,5
73,6
09
Fina
ncia
l ass
ets
at a
mor
tized
cos
t
Prop
erty
and
pla
nt -
net
Inta
ngib
le a
sset
s 3,
003,
463
378,
258
6,50
5,35
76,
883,
615
8,85
9,58
646
,263
,699
55,1
23,2
85
2,43
2,99
8-
583,
968,
845
38,8
47,8
98
2,43
2,99
8
484,
805,
293
464,
771,
379
949,
576,
672
Def
erre
d ta
x as
sets
Oth
er a
sset
s
Tota
l ass
ets
Liab
ilitie
s:
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
Cust
omer
s’ d
epos
its
622,
816,
743
15,6
25,7
5638
,094
,827
Cash
mar
gins
22
,469
,071
62,7
93,7
1599
,789
,624
36,9
95,9
09
710,
086
-
Bor
row
ed fu
nds
Sund
ry p
rovi
sion
s
710,
086
-6,
501,
454
Inco
me
tax
prov
isio
n 6,
501,
454
2,81
2,85
02,
812,
850
-12
,074
,876
120,
790,
305
785,
233,
458
-D
efer
red
tax
liabi
litie
s
Oth
er li
abili
ties
12
,074
,876
664,
443,
153
343,
981,
074
164,
343,
214
(179
,637
,860
)
Tota
l Lia
bilit
ies
Net
31 D
ecem
ber
2016
Asse
ts:
Cash
and
bal
ance
s at
the
Cent
ral B
ank
102,
527,
791
-10
2,52
7,79
1
45,8
54,2
92-
-
-
45,8
54,2
92B
alan
ces
at b
anks
and
fina
ncia
l ins
titut
ions
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
5,00
0,00
05,
000,
000
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
stat
emen
t of i
ncom
e 2,
556,
397
2,55
6,39
7
222,
874,
925
231,
829,
343
454,
704,
268
Dir
ect c
redi
t fac
ilitie
s -
net
Fina
ncia
l ass
ets
at fa
ir v
alue
thro
ugh
othe
r
com
preh
ensi
ve in
com
e -
20,5
81,4
6120
,581
,461
71,6
34,3
6347
,445
,591
119,
079,
954
1,80
6,40
526
,921
,345
621,
939
1,33
3,98
6
28,7
27,7
50
Fina
ncia
l ass
ets
at a
mor
tized
cos
t
Prop
erty
and
pla
nt -
net
Inta
ngib
le a
sset
s 1,
955,
925
330,
360
5,03
5,55
55,
365,
915
5,51
4,60
853
,551
,530
59,0
66,1
38
9,01
8,27
5-
583,
892,
917
183,
438
9,01
8,27
5
453,
721,
080
391,
698,
811
845,
419,
891
Def
erre
d ta
x as
sets
Oth
er a
sset
s
Tota
l ass
ets
Liab
ilitie
s:
Dep
osits
at b
anks
and
fina
ncia
l ins
titut
ions
Cust
omer
s’ d
epos
its
584,
076,
355
-32
,157
,407
Cash
mar
gins
32
,157
,407
30,3
51,9
6442
,322
,037
11,9
70,0
73
1,08
2,09
0-
Bor
row
ed fu
nds
Sund
ry p
rovi
sion
s
1,08
2,09
0
-6,
208,
287
Inco
me
tax
prov
isio
n 6,
208,
287
2,07
3,43
32,
073,
433
-13
,835
,700
33,6
90,9
2569
0,77
3,58
4
-D
efer
red
tax
liabi
litie
s
Oth
er li
abili
ties
13
,835
,700
657,
082,
659
358,
007,
886
154,
646,
307
(203
,361
,579
)
Tota
l Lia
bilit
ies
Net
31 D
ecem
ber
2015
An
nual
Rep
ort
34th
A .
B .
C .
2016
Fina
ncia
l ass
ets
thro
ugh
stat
emen
t
of in
com
e 1,
944,
323
2,12
8,11
6
183,
793
Fina
ncia
l ass
ets
thro
ugh
othe
r co
mpr
ehen
sive
inco
me
21,8
51,6
3324
,437
,914
26,5
66,0
30
2,5
86,2
81
23,7
95,9
56 2
,770
,074
2,55
6,39
7-
2,55
6,39
7-
18,3
02,2
3520
,581
,461
23,1
37,8
58
2,2
79,2
26
20,8
58,6
32 2
,279
,226
2015
Fina
ncia
l ass
ets
thro
ugh
stat
emen
t
of in
com
e Fi
nanc
ial a
sset
s th
roug
h ot
her
com
preh
ensi
ve in
com
e
A.Cr
edit
com
mitm
ents
and
con
tinge
ncie
s:
Lett
ers
of c
redi
t 7,
613,
523
13
,761
,841
8,43
8,67
23,
186,
941
26,0
75,7
4431
,800
,034
39,7
77,0
8830
,842
,045
12,3
70,3
9411
,135
,306
28,6
34,4
0717
,312
,891
122,
909,
828
108,
039,
058
804
28,5
80
11,0
0016
7,10
4
11,8
0419
5,68
4
Acce
ptan
ces
and
peri
odic
with
draw
als
Lett
ers
of g
uara
ntee
s:
Paym
ents
Perf
orm
ance
Oth
er
Unu
tiliz
ed c
redi
t fac
ilitie
s
B.C
ontr
actu
al o
blig
atio
ns:
Cont
ract
s to
pur
chas
e pr
oper
ty a
nd e
quip
men
t
Cons
truc
tion
cont
ract
s
Ope
ratin
g le
ases
am
ount
ed to
JD
642
,728
3
1 D
ecem
ber
201
)
The
fair
val
ue o
f the
unq
uote
d fin
anci
al in
stru
men
ts p
rese
nted
in th
e co
nsol
idat
ed fi
nanc
ial p
ositi
on a
re n
ot
mat
eria
lly d
iffer
ent f
rom
thei
r ca
rryi
ng v
alue
in th
e co
nsol
idat
ed fi
nanc
ial s
tate
men
ts. I
n ad
ditio
n, th
e fa
ir
valu
e of
dir
ect c
redi
t fac
ilitie
s, d
epos
its in
ban
ks a
nd fi
nanc
ial i
nstit
utio
n, c
usto
mer
dep
osits
, cas
h m
argi
n an
d bo
rrow
ed m
oney
whi
ch p
rese
nted
at a
mor
tized
cos
t are
not
e m
ater
ially
diff
eren
t fro
m th
eir
carr
ying
va
lue
pres
ente
d in
the
cons
olid
ated
fina
ncia
l sta
tem
ents
bec
ause
the
inte
rest
rat
e in
the
finan
cial
ass
ets
mar
ket a
re n
ot m
ater
ially
diff
eren
t fro
m th
eir
cont
ract
ual p
rice
s, fu
rthe
rmor
e, d
ue to
the
shor
t ter
m p
erio
ds
whe
n it
com
es to
dep
osits
at b
anks
and
fina
ncia
l ins
titut
ion.
The
fair
val
ue p
rese
nted
at a
mor
tized
cos
t is
mea
sure
d ei
ther
thro
ugh
pric
es a
nnou
nced
in th
e m
arke
t whe
n it
is a
vaila
ble
or th
roug
h va
luat
ion
met
hods
su
ch a
s us
ed in
som
e bo
nds
with
fixe
d in
tere
st r
ate
case
s.
Dur
ing
the
first
qua
rter
of 2
015,
the
bank
tran
sfer
red
part
of t
he fi
nanc
ial a
sset
s at
fair
val
ue th
roug
h pr
ofit
and
loss
to fi
nanc
ial a
sset
s at
am
ortiz
ed c
ost,
whi
ch c
ompl
y w
ith th
e lo
ng te
rm s
trat
egic
inve
stm
ent p
lan
and
inve
stm
ent d
rive
n of
thes
e in
vest
men
ts. T
he fa
ir v
alue
of t
he p
ortf
olio
at t
he tr
ansf
erri
ng d
ate
amou
nted
to
JD
2,3
60,1
36 a
nd th
e fa
ir v
alue
as
of 3
1 D
ecem
ber
2016
am
ount
ed to
JD
450
,939
.
An
nual
Rep
ort
34th
.
- - - - -
.