jordan banking sector brief - awraq · pdf filejordan banking sector brief q3 2014 saad m....

2014

December 29th, 2014

Jordan Banking Sector Brief

Q3 2014

Saad M. Hudairi

+96265503800 Ext. 242

[email protected]

2

Brief

Source: Central Bank of Jordan

Banks in Jordan

The banking sector in Jordan – as in many countries – is considered one of the main pillars of theJordanian economy. In spite of the plethora of the geopolitical and economic events, the well-capitalized and highly regulated banking sector proved resilient, maintaining its expansion andgrowth during the first nine months of 2014.

The sector currently consists of 25 banks, 15 of which are listed on the Amman Stock Exchange(ASE). In this report we cover the listed banks, examining their performance up to the third quarterof 2014 while discussing each bank’s financial highlights in addition to any extra-ordinary events thattook place during the year.

Bank Name Ticker Origin TypeArab Bank ARBK Local CommercialArab Banking Corporation ABCO Local CommercialArab Jordan Investment Bank AJIB Local CommercialBank Al Etihad UBSI Local CommercialBank of Jordan BOJX Local CommercialCairo Amman Bank CABK Local CommercialCapital Bank of Jordan EXFB Local CommercialInvestbank INVB Local CommercialJordan Ahli Bank AHLI Local CommercialJordan Commercial Bank JCBK Local CommercialJordan Kuwait Bank JOKB Local CommercialSociete Generale de Banque Jordanie SGBJ Local CommercialThe Housing Bank for Trade and Finance THBK Local CommercialJordan Islamic Bank JOIB Local IslamicJordan Dubai Islamic Bank JDIB Local IslamicIslamic International Arab Bank Not listed Local IslamicBanque Audi Not listed Foreign CommercialBlom Bank Not listed Foreign CommercialCitiBank Not listed Foreign CommercialEgyptian Arab Land Bank Not listed Foreign CommercialNational Bank of Abu Dhabi Not listed Foreign CommercialNational Bank of Kuwait Not listed Foreign CommercialRafidain Bank Not listed Foreign CommercialStandard Chartered Not listed Foreign CommercialAl Rajhi Bank Not listed Foreign Islamic

source: ASE, Bloomberg , Bank’s Financials3

Net Profit Growth

Out of the 15 listed Jordanian banks, 11recorded an increase in net income during the first ninemonths of 2014, of which 8 banks witnessed notable growth of more than 10 percent. During theperiod, ARBK and THBK continued to report the largest net income of JOD 305.39 million andJOD 90.23 million respectively. While AHLI, AJIB and SGBJ recorded the highest growth in netincome of 132.63%, 39.23% and 38.51% respectively during the first nine months of 2014.

Source: ASE, Bloomberg, Bank’s Financials

Net Profit Growth

Net Income – YoY Net Income – QoQ

source: ASE, Bloomberg , Bank’s Financials

0.0050.00

100.00150.00200.00250.00300.00350.00400.00

AR

BK

TH

BK

JOIB

BO

JXJO

KB

CA

BK

AH

LIE

XFB

UB

SIA

JIB

AB

CO

JDIB

SGB

JIN

VB

H1

JCB

K H

1

Net Income 2012Net Income 2013

0

50

100

150

200

250

300

350

AR

BK

TH

BK

JOIB

BO

JX

JOK

B

CA

BK

AH

LI

EX

FB

UB

SI

AJI

B

AB

CO

JDIB

SGB

J

INV

B H

1

JCB

K H

1

Net Income Q3 2013Net Income Q3 2014

TickerNet

Income 2012

Net Income

2013

Growth 2013

Net Income Q3 2013

Net Income Q3 2014

Growth Q3 2014

JOD (mil) JOD (mil) % JOD (mil) JOD (mil) %ARBK 261.34 346.23 32.48% 292.38 305.39 4.45%THBK 104.49 106.93 2.34% 78.79 90.23 14.52%JOIB 36.45 45.11 23.76% 36.39 33.15 -8.90%BOJX 33.19 36.39 9.64% 25.93 31.46 21.33%JOKB 46.61 47.42 1.74% 37.62 40.04 6.43%CABK 35.29 40.80 15.61% 27.41 31.64 15.43%AHLI 23.85 16.00 -32.91% 13.82 32.15 132.63%EXFB 22.04 37.04 68.06% 24.02 26.22 9.16%UBSI 14.75 22.52 52.68% 15.71 18.67 18.84%AJIB 15.00 16.66 11.07% 12.21 17.00 39.23%

ABCO 11.03 11.70 6.07% 8.67 9.70 11.83%JDIB 2.13 1.47 -31.00% 36.39 33.15 -8.90%SGBJ 4.73 7.00 48.00% 5.09 7.05 38.51%

INVB (H1 2014) 11.25 11.93 6.00% 7.33 6.31 -13.92%JCBK (H1 2014) 2.06 3.20 55.34% 2.78 0.66 -76.26%

Banking Sector ReportDecember 29th, 2014

Source: ASE, Bloomberg , Bank’s Financials

CABK

4

Brief

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

7.00%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

AJIB

EXFB

AHLIARBK

THBK

JOKB

BOJX

JOIB

Payout Ratio

Div

iden

d Y

ield

INVB

UBSI

Cash Dividend

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

AR

BK

AB

CO

H1

AJI

B H

1

UB

SI H

1

BO

JX

CA

BK

H1

EX

FB

INV

B H

1

AH

LI

JCB

K H

1

JOK

B

SGB

J

TH

BK

H1

JOIB

JDIB

Capital Adequacy



*Price as of 29th of December, 2014

5

Loans and Deposits

Most of the listed banks witnessed an increase in net credit facilities during the third quarter of 2014.AJIB had the highest growth rate in credit facilities where it grew 67.54% and amounted to JOD632.13 million compared to JOD 377.31 million at the end of 2013.

Most of the banksreported an increase indeposits during the Q3period.

AJIB also recorded thehighest growth in thenine months period of68.17% to amount toJOD 1,039.17 million.

JDIB was the only bankto report a slight drop indeposits of around 1%YTD.

Net Credit Facilities Figure


Loans and Deposits Growth


TickerLoans Growth Deposits Growth

Loans To Deposits (%)

y/y (%) YTD (%) y/y (%) YTD (%) FY 2013 Q3 2014

ARBK 6.05% 6.02% 5.07% 0.64% 62.35% 65.60%THBK -0.78% 6.44% 6.68% 1.58% 55.95% 55.07%JOIB 5.05% 3.21% 7.87% 6.11% 72.38% 70.40%BOJX 11.79% 5.36% -0.06% 6.21% 70.08% 69.02%JOKB -6.22% -0.18% 10.12% 8.04% 83.41% 77.47%CABK -4.22% 3.28% 3.67% 10.76% 68.69% 64.09%AHLI -6.75% 4.55% -16.80% 5.12% 71.41% 70.59%EXFB 8.51% 14.55% 20.76% 11.80% 76.60% 76.76%UBSI 21.31% 10.95% 27.79% 15.85% 74.39% 70.80%AJIB -3.73% 67.54% 3.28% 68.17% 62.03% 66.33%

ABCO 5.10% 4.83% 22.29% 11.34% 81.72% 77.32%JDIB 14.52% 29.09% 5.62% 14.84% 99.27% 88.31%SGBJ 27.31% 31.96% 27.02% 30.38% 51.80% 51.89%

INVB (H1 2014) 6.57% 6.21% -5.90% 5.16% 83.44% 84.06%JCBK (H1 2014) 17.92% 3.74% 19.62% 14.46% 72.64% 65.17%

-

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

AR

BK

TH

BK

JOIB

BO

JX

JOK

B

CA

BK

AH

LI

EX

FB

UB

SI

AJI

B

AB

CO

JDIB

SGB

J

INV

B (H

1 20

14)

JCB

K (H

1 20

14)

2012

2013

Q3 2014


6

Interest Income

All of the banks have reported growth in their interest income during Q3 2014 except for JOKBwhich had a slight decline in interest income of 2.4%. JOIB was able to increase its interest incomeby 26.2% to reach JOD 8.67 million during Q3 2014. Among the highest growth rates, SGBJ andJDIB marked a substantial growth in their interest income of around 35.0% each.

Interest Income

TickerInterest Income

2012

Interest Income

2013Growth 2013

Interest Income Q3

2013

Interest Income Q3

2014Growth Q3 2014

JOD (mil) JOD (mil) % JOD (mil) JOD (mil) %ARBK 954.61 1027.81 7.7% 763.5 778.71 2.0%THBK 336.44 364.92 8.5% 267.1 286.88 7.4%JOIB 85.91 115.46 34.4% 53.82 67.92 26.2%BOJX 120.48 118.05 -2.0% 87.19 92.97 6.6%JOKB 127.87 141.96 11.0% 105.81 103.23 -2.4%CABK 124.99 149.28 19.4% 111.2 112.67 1.3%AHLI 111.37 123.01 10.5% 91.12 95.72 5.0%EXFB 81.55 99.78 22.4% 75.07 78.73 4.9%UBSI 76.34 100.78 32.0% 72.98 89.29 22.3%AJIB 54.67 59.10 8.1% 44.22 52.9 19.6%

ABCO 52.82 62.71 18.7% 46.38 48.57 4.7%JDIB 8.83 14.07 59.3% 6.42 8.67 35.0%SGBJ 22.62 33.7 49.0% 23.5 31.7 34.9%

INVB (H1 2014) 45.59 48.18 5.7% 23.83 25.74 8.0%JCBK (H1 2014) 45.61 57.05 25.1% 26.15 33.97 29.9%


-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

AR

BK

TH

BK

JOIB

BO

JX

JOK

B

CA

BK

AH

LI

EX

FB

UB

SI

AJI

B

AB

CO

JDIB

SGB

J

INV

B (H

1 20

14)

JCB

K (H

1 20

14)

Growth 2013

Q3-14 QoQ Growth

Interest Income Growth Figure



7

Commission Income

Most of the banks witnessed growth in commissions during Q3 2014. The highest commissionincome earned in the period was recorded by ARBK, THBK and JOIB where commission incomeamounted to JOD 129.73 million, JOD 25.93 million and JOD 22.61 million respectively.

Commission Income


Commission Income Figures

05

10152025303540

TH

BK

JOIB

EX

FB

CA

BK

AH

LI

BO

JX

JDIB

UB

SI

JOK

B

AJI

B

AB

CO

SGB

J

INV

B (H

1 20

14)

JCB

K (H

1 20

14)

2012

2013

-

5.00

10.00

15.00

20.00

25.00

30.00

TH

BK

JOIB

EX

FBC

AB

KA

HLI

BO

JXJD

IBU

BSI

JOK

BA

JIB

AB

CO

SGB

JIN

VB

(H1

2014

) JC

BK

(H1

2014

)

Q3 2013

Q3 2014

*ARBK was excluded from the chart


Ticker 2012 2013 y/y Q3 2013 Q3 2014 y/y JOD (Mil) JOD (Mil) % JOD (Mil) JOD (Mil) %

ARBK 151.23 162.85 7.68% 119.96 129.73 8.14%THBK 33.39 33.52 0.39% 25.17 25.93 3.02%JOIB 20.88 25.9 24.04% 18.99 22.61 19.06%EXFB 32.21 19.71 -38.81% 15.11 15.93 5.43%CABK 19.34 19.55 1.09% 14.12 15.71 11.26%AHLI 19.53 17.89 -8.40% 13.42 15.21 13.34%BOJX 17.32 16.55 -4.45% 12.27 13.24 7.91%JDIB 6.71 11.58 72.58% 8.26 9.95 20.46%UBSI 12.71 12.88 1.34% 9.17 9.32 1.64%JOKB 10.66 12.02 12.76% 8.24 8.58 4.13%AJIB 4.48 4.71 5.13% 3.33 4.56 36.94%

ABCO 2.74 2.38 -13.14% 1.83 2.41 31.69%SGBJ 2.23 2.38 6.73% 1.81 1.45 -19.89%

INVB (H1 2014) 4.92 5.6 13.82% 2.77 2.62 -5.42%JCBK (H1 2014) 5.33 5.87 10.13% 2.79 2.66 -4.66%


*ARBK was excluded from the chart

Price as of 29th December, 2014

8

Arab Bank(ARBK)

(JOD) Closing Price 6.9652-Week Range 10.2-6.52Average Traded Volume 115,555Free Float (%) 45.75%P/E 12.98P/BV 0.98Capital 569,600,000Market Cap 3,964,416,000Dividend Yield (%) 4.31%

The Arab Bank reported robust results during Q3 2014, as thebank witnessed growth in its core operations and profitability.Net income marked an increase of 4.45% to amount to JOD305.39 million compared to JOD 292.38 million in the sameperiod last year, which was bolstered by the increase in interestincome and commission income of 2% and 8.14% respectively.Other revenues went up 33% Q-o-Q and reached JOD 23.82million compared to JOD 17.92 million.

56%

33% 11%

Saving and Term deposits Other deposits Cash Margins

Source: Bank’s Financials Q3 2014


Deposits Structure

Loans Structure

Profitability figures

Stock Highlights


Arab Bank is one of the largest financial institutions inthe Middle East, founded in 1930 as the first private sectorfinancial institution in the Arab world. The bank is a majoreconomic engine in Jordan and throughout the MiddleEast/Northern Africa, providing modern banking services andcapital, and facilitating development and trade throughout theregion. The bank has the highest market capitalization of allcompanies listed and represents 23.3% of the Amman StockExchange.

2012 2013Q3

2013Q3

2014 GrowthInterest Income (Mil) 954.61 1027.81 763.50 778.71 1.99%

Commission income (Mil) 151.23 162.85 119.96 129.73 8.14%

Net Income (Mil) 261.34 346.23 292.38 305.39 4.45%EPS 0.49 0.65 0.55 0.54 -1.82%ROE % 6.80% 8.84% 7.45% 7.62% N/AROA % 1.09% 1.43% 1.22% 1.24% N/A

69%

8%16%

2% 5%

Large Corps (Mil)SMEs (Mil)Retail (Mil)Mortgages (Mil)Government (Mil)


6.5

7

7.5

8

8.5

9

9.5

10

ARBK

The bank has made changes in its loan portfolio structure, as banks and financial institutionsfacilities saw an increase of 45.67% and amounted to JOD 283.49 million in Q3 2014, while facilitiesgranted to retailers rose by 12.01% to stand at JOD 1924.92 million in the same period compared toJOD 1718.48 million at the end of 2013. Meanwhile, total credit facilities soared 5.88% Y-o-Y andamounted to JOD 12,043.89 million, which resulted in a 65.60% loans to deposits ratio.

During September 2014, a New York jury found Arab Bank liable for 24 counts of supportingterrorism by transferring funds to Hamas. The verdict came after a month-long trial at the easterndistrict court in Brooklyn that followed a federal lawsuit filed in 2004 by hundreds of Israelis forallegedly holding accounts that financed attacks they claim killed members of their families in Israeland the Palestinian territories between 2001 and 2004. Arab Bank disclosed, accordingly, that itwould appeal the verdict.

During 2014, the bank distributed total dividend per share of JOD 0.30, while also increasing itsARBK has increased its capital by 6.66% through distributing bonus shares.

Key Performance Indicators

9


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 23921.5 23912.4 24538.37 24862.94 1.32%Total Equity (Mil) 3813.52 3875.51 3955.41 4028.15 1.84%Capital (Mil) 534.00 534.00 534.00 569.60 6.67%DepositsSaving and Term deposits (Mil) 9975.50 9771.73 10214.56 10234.06 0.19%Other deposits (Mil) 4706.52 5244.13 5579.44 6087.07 9.10%Cash Margins (Mil) 2021.69 2347 2449.62 2039.53 -16.74%Total deposits (Mil) 16703.72 17362.9 18243.62 18360.66 0.64%Total Investments (Mil) 2512.21 2172.54 1752.7 1878.62 7.18%Due to Banks (Mil) 4615.57 5802.17 6212.42 6494.46 4.54%Loans Large Corps (Mil) 7558.91 7536.05 7986.4 8293.08 3.84%SMEs (Mil) 713.27 695.51 848.69 916.74 8.02%Retail (Mil) 1478.95 1589.02 1718.48 1924.92 12.01%Mortgages (Mil) 282.18 309.07 194.61 283.49 45.67%Government (Mil) 699.35 706.09 627.01 625.66 -0.22%Total Loans (Mil) 10732.7 10835.7 11375.19 12043.89 5.88%Net Credit Facilities (Mil) 10003.6 9937.60 10539.26 11173.88 6.02%Loans / Deposits Ratio % 64.25% 62.77% 62.35% 65.60% N/ANon Performing Loans (Mil) 832 923.5 850.1 855.9 N/ALoans Provisions (Mil) 578.69 703.56 619.97 634.05 2.27%NPL Ratio % 7.75% 8.52% 7.47% 7.11% N/ANPL Coverage Ratio % 69.55% 76.18% 72.93% 74.08% N/ACapital Adequacy % 15.09% 14.45% 14.58% 13.76% N/A



10

The Housing Bank For Trade And Finance(THBK)

(JOD) Closing Price 9.1052-Week Range 9.25-8.7Average Traded Volume 1,614Free Float (%) 7.85P/E 22.98P/BV 2.36Capital 252,000,000Market Cap 2,293,200,000Dividend Yield (%) 3.30%

The Housing Bank for Trade and Finance (THBK) wasestablished in 1973 as a public shareholding limited companywith a capital amounting to half a million JOD. The primaryfocus of the Bank was to provide housing finance, and hence thename. Later on, it evolved to become a fully fledged commercialbank and became the second largest bank in Jordan as well as thesecond largest company listed in Jordan in terms of marketcapitalization.

8

8.3

8.6

8.9

9.2

9.5

9.8

THBK

The bank currently owns 75% of Jordan Investment Bank(JIB), which provides banking services in and outside the UnitedKingdom.The bank reported strong results during Q3 2014, where it saw anincrease in net income of 14.52%, reaching JOD 90.23 millioncompared to JOD 78.79 million. Interest income moved 7.41%Q-o-Q forward to amount to JOD 286.88 million, whilecommission income saw an increase as well of 8.72% Q-o-Q tostand at JOD 25.93 million.

73%

23% 4%




Deposits Structure

Loans Structure


Stock Highlights


32%

9%

18%

29%12%

Large Corps SMEs Retail Mortgages Government


Stock Performance

2012 2013Q3

2013Q3

2014Growth

Interest Income (Mil) 336.44 364.92 267.10 286.88 7.41%

Commission income (Mil)

33.39 33.52 25.17 25.93 3.02%

Net Income (Mil) 104.49 106.93 78.79 90.23 14.52%EPS 0.41 0.42 0.31 0.36 16.13%ROE % 9.97% 10.60% 8.37% 9.29% N/AROA % 1.49% 1.49% 1.11% 1.22% N/A

The bank’s gross profit marked a drop of 5.4% due to a decline of 66.89% in profits from foreigncurrencies, during which foreign currency profit reached JOD 11.83 million during Q3 2014compared to JOD 35.72 million same period last year.

Provisions for bad debt were significantly cut down compared with Q3 2013, where they stood atJOD 33.28 million in Q3 2014 compared to JOD 68.16 million in Q3 2013, affecting the totalexpenses with a drop of around 16.28%.

During 2014, the bank distributed total dividends per share of JOD 0.30 for the year 2013.


11


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 6938 7091.63 7227.09 7517.22 4.01%Total Equity (Mil) 1048.6 1046.66 971.82 971.56 -0.03%Capital (Mil) 252.00 252.00 252.00 252.00 0.00%DepositsSaving and Term deposits (Mil) 3659.59 3504.8 3791.36 4099.09 N/AOther deposits (Mil) 1174.33 1222.39 1302.09 1305.61 N/ACash Margins (Mil) 333.32 260.72 227.88 235.12 3.18%Total deposits (Mil) 5167.24 4987.91 5321.33 5639.82 5.99%Due to Banks (Mil) 541.04 839.57 592.86 578.2 -2.47%Total Investments (Mil) 2099.08 2252.09 2523.26 2436.22 -3.45%LoansLarge Corps (Mil) 1197.26 1107.31 1042.83 1001.55 -3.96%SMEs (Mil) 355.47 283.84 286.01 292.9 2.41%Retail (Mil) 466.49 521.62 529.09 561.33 6.09%Mortgages (Mil) 535.474 663.79 762.09 885.11 16.14%Government (Mil) 535.474 364.46 357.22 365.15 2.22%Total Loans (Mil) 3090.17 2941.02 2977.24 3106.04 4.33%Net Credit Facilities (Mil) 2502.1 2683.88 2662.85 2834.45 6.44%Loans / Deposits Ratio % 59.80% 58.96% 55.95% 55.07% N/ANon Performing Loans (Mil) 268.65 324.4 335.61 N/a N/ALoans Provisions (Mil) 161.898 189.72 232.07 198.34 -14.53%NPL Ratio % 8.69% 11.03% 11.27% N/A N/ANPL Coverage Ratio % 60.26% 58.48% 69.15% N/A N/ACapital Adequacy % 20.31% 18.88% 19.13% N/A N/A



12

Jordan Islamic Bank (JOIB)

(JOD) Closing Price 3.6952-Week Range 4.46-3.26Average Traded Volume 50,013Free Float (%) 24.91%P/E 12.27P/BV 2.05Capital 150,000,000Market Cap 552,000,000Dividend Yield 4.07%

Jordan Islamic Bank was established in 1978, as a publicshareholding limited company to carry out all kinds ofbanking, financing and investment business operations incompliance with the Islamic Sharia’ and in accordance with theprovisions of Jordan Islamic Bank’s Special Law.

2.5

2.8

3.1

3.4

3.7

4

4.3

JOIB

JOIB has been growing rapidly since the past couple ofyears, increasing the bank’s capital from JOD 100 million in 2011to reach JOD 150 million during this year.During the last quarter of 2014, the bank witnessed a drop of8.90% Q-o-Q in net income to reach JOD 33.15 millioncompared to JOD 36.39 million due to a 7% decline in revenuesof the bank’s share of joint investment accounts, and a slightdecline of 3.53% Q-o-Q in deferred sale revenues versus animpressive increase in leased assets and Ijara revenues of 19% Q-o-Q which affected the drop in net income.

27%

17%23%

7%

26%

Individuals (Retail)MortgagesMajor Companies SMEs Government


80%

17%

3%

Current Accounts Call Accounts Cash Margins



Deposits Structure

Loans StructureProfitability figures

Stock Highlights


2012 2013Q3

2013Q3

2014Growth

Deferred Sale Revenues

115.46 135.31 102.31 98.7 -3.53%

Revenues of Leased Assets and Ijara

20.88 25.9 18.99 22.61 19.06%

Total Revenues of Joint Investment accounts

146.52 168.32 126.78 127.04 0.21%

Net Income (Mil) 36.45 45.11 36.39 33.15 -8.90%EPS 0.36 0.36 0.29 0.22 -24.14%ROE % 15.93% 17.66% 14.24% 12.27% N/AROA % 1.21% 1.37% 1.06% 0.96% N/A

Stock Performance

Retail loans recorded an increase of 14.86% during Q3 2014 to reach JOD 556.39 million comparedto the end of 2013, furthermore, Government loans edged down 19% during the same period toamount to JOD 528.22 million, making the total deferred reach JOD 2048.96 million.

During 2014, the bank distributed total dividend per share of JOD 0.15, while also increasing itscapital by JOD 25 million through distributing bonus shares to reach a total of JOD 150 million.


13


2011 2012 2013 Q3 2014 Growth Total Assets (Mil) 2898.30 3020.49 3281.64 3464.44 5.57%Total Equity (Mil) 206.88 228.80 255.46 270.14 1.66%Capital (Mil) 100.00 125.00 125.00 150.00 20.00%DepositsCurrent Accounts (Mil) 657.77 708.09 781.40 845.02 8.14%Call Accounts (Mil) 124.40 130.92 157.18 173.88 8.05%Cash Margins (Mil) 30.36 30.15 29.82 34.29 15.12%Total deposits (Mil) 812.53 869.16 968.40 1053.19 8.34%Deferred Sale ReceivablesIndividuals (Retail) 440.49 464.98 484.46 556.39 14.85%Mortgages 287.50 303.93 330.37 355.62 7.64%Major Companies (Mil) 370.54 417.27 433.91 461.93 6.46%SMEs (Mil) 146.72 163.49 138.20 146.80 6.22%Government (Mil) 23.90 700.65 651.87 528.22 -18.97%Total Deferred (Mil) 1269.15 2050.32 2038.81 2048.96 0.50%Net Deferred Sales & Other Receivables (Mil)

1081.00 1753.44 1758.78 1771.53 0.72%

Non Performing Loans (Mil) 94.03 91.94 98.43 113.41 15.22%Impairment Provision (Mil) 50.40 53.26 68.36 79.37 16.11%NPL Ratio % 7.41% 4.48% 4.83% 5.54% 14.65%NPL Coverage Ratio % 53.60% 57.93% 69.45% 69.99% 0.77%Capital Adequacy % 24.41% 19.21% 18.13% 18.49% 1.99%



14

Bank Of Jordan(BOJX)


Bank of Jordan was established back in 1960 and currently offersvarious services throughout Jordan and Palestine. Today, Bank ofJordan is among the top five local banks with capital of JOD155.10 million, assets of JOD 2,076.9 million and shareholders’equity of JOD 317 million as of 31/12/2013.

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3

BOJX

Bank of Jordan witnessed an improvement in its core operationsin which the bank’s interest income rose 6.63% Q-o-Q andamounted to JOD 92.97 million compared to JOD 87.19 millionin the same period last year. Net income had a boost in the ninemonths period in which it surged 21.33% to approach the JOD31 million levels compared to the previous period where it stoodat JOD 25.93 million.

46%

11%22%

16%

5%



67%

26%

7%

Saving and Term deposits

Other deposits

Cash Margins

Source: Bank’s Financials H1 2014


Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth

Interest Income (Mil)

120.48 118.05 87.19 92.97 6.63%


17.32 16.55 12.27 13.24 7.91%

Net Income (Mil) 33.19 36.39 25.93 31.46 21.33%EPS 120.48 118.05 87.19 92.97 6.63%ROE % 17.32 16.55 12.27 13.24 7.91%ROA % 33.19 36.39 25.93 31.46 21.33%

Total credit facilities recorded an increase of 4.61% to amount to JOD 1199.59 million during Q32014 compared to the end of 2013 which amounted to 1146.69. Meanwhile, all of the creditfacilities categories marked an increase during Q3 2014 except for the government loans whichrevealed a significant decline of 40.18% to stand at JOD 65.24 million.

The bank’s total deposits saw an increase of 6.21% during Q3 2014 to stand at JOD 1737.96 millionas opposed to JOD 1636.34 million in the same period last year, while deposits of banks andfinancial institutions rose 83.44% Y-o-Y to amount to JOD 128.26 million compared to JOD 69.92million at the end of 2013.

During 2014, the bank distributed total dividend per share of JOD 0.15.


15


2011 2012 2013 Q3 2014 Growth Total Assets (Mil) 2052.86 2016.63 2076.94 2237.57 7.73%Total Equity (Mil) 277.31 290.78 321.49 323.7 0.69%Capital (Mil) 155.10 155.10 155.10 155.10 0.00%DepositsSaving and Term deposits (Mil) 1133.62 1174.04 1114.4 N/A N/AOther deposits (Mil) 364.38 378.57 429.8 N/A N/ACash Margins (Mil) 102.03 84.67 92.14 101.76 10.44%Total deposits (Mil) 1600.03 1637.28 1636.34 1737.96 6.21%Total Investments (Mil) 133.42 35.04 69.92 128.26 83.44%Due to Banks (Mil) 418.22 464.86 510.54 485.23 -4.96%Loans Large Corps (Mil) 488.88 401.26 482.17 554.4 14.98%SMEs (Mil) 167.79 137.62 125.41 128.01 2.07%Retail (Mil) 213.29 230.29 257.13 260.82 1.44%Mortgages (Mil) 172.8 174.82 172.92 191.12 10.53%Government (Mil) 82.91 84.1 109.06 65.24 -40.18%Total Loans (Mil) 1125.67 1028.09 1146.69 1199.59 4.61%Net Credit Facilities (Mil) 1046.5 930.63 1040.35 1096.16 5.36%Loans / Deposits Ratio % 70.35% 62.79% 70.08% 69.02% N/ANon Performing Loans (Mil) 110.61 113.12 112.32 102.11 N/ALoans Provisions (Mil) 67.12 84.7 92.84 91.32 -1.64%NPL Ratio % 9.83% 11.00% 9.80% 8.51% N/ANPL Coverage Ratio % 60.68% 74.88% 82.66% 89.43% N/ACapital Adequacy % 13.90% 16.03% 15.49% 15.19% N/A



16

Jordan Kuwait Bank(JOKB)


In 1976 a group of prominent Jordanian and Kuwaiti Investorscame together to establish a joint investment project in Jordanunder the name of Jordan Kuwait Bank, for the first 20 years thebank continued to be a medium-sized bank with moderateperformance, the bank took a massive turn starting from year1997 and is now currently the fifth bank in terms of marketcapitalization. The Bank’s paid-up capital was gradually increasedfrom JOD 5 million at establishment to JOD 100 million in 2008.

3

3.3

3.6

3.9

4.2

4.5

4.8

JOKB

JOKB reported a slight increase of 6.43% in net income duringQ3 2014 which amounted to JOD 40.04 million compared toJOD 37.62 million in the same period last year. During Q32014, the bank recovered JOD 4.60 million from provision forimpairment loss in direct credit facilities compared with theprevious period where it has taken provisions amounted to JOD7.46 million.

Due to the reversal in provisions, the bank’s total expenses hasbeen dropped down 17.6% during Q3 2014, down to JOD 31.78million as opposed to JOD 38.58 million in Q3 2013.

65%

31%4%




Deposits Structure

Loans Structure


Stock Highlights


68%

6%6%

9%11%



Stock Performance

2012 2013Q3

2013Q3

2014Growth


127.87 141.96 105.81 103.23 -2.44%


10.66 12.02 8.24 8.58 4.13%


Total credit facilities remained at the levels of JOD 1,390 million; meanwhile, Retail loans expanded17.71% to reach JOD 79.42 million during Q3 2014 instead of JOD 67.47 million at the end of2013, while mortgages slid 23.18% to stand at JOD 150.50 million compared to JOD 164.65 millionat the end of 2013.

Total deposits gained 8.04% during Q3 2014 to reach JOD 1804.14 million as opposed to the end of2013 where total deposits reached JOD 1669.93 million, which made the loans to deposits ratiostand at 77.47% during Q3 2014 as compared to 83.41% at the end of the year 2013.

During 2014, the bank distributed total dividend per share of JOD 0.20.


17


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 2273.65 2409.64 2552.47 2746.59 7.61%Total Equity (Mil) 352.02 379.13 409.33 426.36 4.16%Capital (Mil) 100.00 100.00 100.00 100.00 0.00%DepositsSaving and Term deposits (Mil) 930.67 945.02 1077.89 N/A N/AOther deposits (Mil) 486.49 422.27 523.98 N/A N/ACash Margins (Mil) 87.14 149.15 68.06 77.95 14.53%Total deposits (Mil) 1504.30 1516.44 1669.93 1804.14 8.04%Due to Banks (Mil) 351.61 417.9 374.83 417.83 11.47%Total Investments (Mil) 451.26 338.82 446.66 518.78 16.15%LoansLarge Corps (Mil) 945.55 1044.21 906.23 947.41 4.54%SMEs (Mil) 44.37 64.3 78.51 85.07 8.36%Retail (Mil) 44.9 58.5 67.47 79.42 17.71%Mortgages (Mil) 162.75 167.41 176.04 135.23 -23.18%Government (Mil) 116.34 158.22 164.65 150.5 -8.59%Total Loans (Mil) 1313.91 1492.64 1392.9 1397.63 0.34%Net Credit Facilities (Mil) 1248.7 1416.26 1328.19 1325.81 -0.18%Loans / Deposits Ratio % 87.34% 98.43% 83.41% 77.47% N/ANon Performing Loans (Mil) 135.15 146.56 103.24 N/A N/ALoans Provisions (Mil) 56.62 65.25 56.13 61.32 9.25%NPL Ratio % 10.29% 9.82% 7.41% N/A N/ANPL Coverage Ratio % 41.89% 44.52% 54.37% N/A N/ACapital Adequacy % 16.30% 16.31% 16.02% 15.25% N/A



18

Cairo Amman Bank(CABK)


Cairo Amman Bank (CABK) was established as a publicshareholding company in 1960 and currently operates in Jordanand Palestine, while currently being positioned as the sixth bankin terms of market capitalization. The bank has been targetingmainly retail customers where 53 of the current loan portfolio isgranted to retail customers.

1.5

2

2.5

3

3.5

4

CABK

Cairo Amman Bank revealed strong results during Q3 2014, asnet income surged 15.43% Q-o-Q and amounted to JOD31.64 million compared to JOD 27.41 million, while netinterest income and commission income witnessed gainsduring the period, increasing 8.38% and 11.26% respectivelyto reach a total of JOD 76.30 million and JOD 15.71 million.

18%

6%

55%

12% 9%



64%

31%5%


Other deposits

Cash Margins


Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth


124.99 149.28 111.20 112.67 1.32%


19.34 19.55 14.12 15.71 11.26%



During Q3 2014, most of the loan categories witnessed gains compared to the end of year 2013except for the government loans which slightly dropped during the period. The total credit facilitiesgained 3.3% and reached a total of JOD 1061.44 million compared to JOD 1027.13 million at theend of 2013, while current deposits witnessed a 23.43% growth in Q3 2014 to make the totaldeposits reach JOD 1,656.21 million.



19


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 1940.36 2024.34 2212.97 2356.74 6.50%Total Equity (Mil) 223.57 241.24 264.18 278.69 5.49%Capital (Mil) 100.00 100.00 100.00 125.00 25.00%DepositsSaving and Term deposits (Mil) 935.66 1000.38 1007.42 1054.57 4.68%Other deposits (Mil) 439.47 399.95 418.59 516.65 23.43%Cash Margins (Mil) 47.42 41.97 69.27 84.99 22.69%Total deposits (Mil) 1422.56 1442.3 1495.28 1656.21 10.76%Due to Banks (Mil) 170.13 98.76 213.94 286.23 33.79%Total Investments (Mil) 440.34 520.49 630.5 458.76 -27.24%LoansLarge Corps (Mil) 211.8 183.95 173.17 190.18 9.82%SMEs (Mil) 50.45 49.73 49.52 59.33 19.81%Retail (Mil) 512.43 558.25 563.05 587.16 4.28%Mortgages (Mil) 123.99 128.09 128.48 132.06 2.79%Government (Mil) 104.69 138.06 112.91 92.71 -17.89%Total Loans (Mil) 1003.36 1064.02 1027.13 1061.44 3.34%Net Credit Facilities (Mil) 947.59 1007.34 964.79 996.45 3.28%Loans / Deposits Ratio % 66.61% 70.98% 68.69% 64.09% N/ANon Performing Loans (Mil) 58.29 47.63 59.89 65.36 N/ALoans Provisions (Mil) 45.23 45.77 50.96 53.91 5.79%NPL Ratio % 6.15% 4.52% 5.83% 6.16% N/ANPL Coverage Ratio % 77.59% 96.09% 85.09% 82.48% N/ACapital Adequacy % 15.14% 14.93% 14.94% N/A N/A



20

Al Ahli Bank(AHLI)


Jordan Ahli Bank was established in 1955 and was the sixthpublic shareholding company to be established in Jordan with aninitial capital of JOD 350,000. Currently the bank has regionalpresence in Palestine and Cyprus.

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

AHLI

During May 2014, Jordan Ahli Bank sold 97% of its stake in theInternational Ahli Bank in Lebanon which made a hike in netincome from non recurring items that amounted to JOD 32.15million in Q3 2014 compared to JOD 13.82 million in Q3 2013.If we exclude those non-recurring items, AHLI will reveal anincrease in net income of 13.32% that reached JOD 13.78million compared to JOD 12.16 million.

Interest income witnessed growth of 5% to move to JOD 95.72million during Q3 2014 compared with JOD 91.12 million in thesame period last year, while commission income stood at JOD15.21 million during the same period.

43%17%

27% 11%2%





Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth

Interest Income (Mil) 111.37 123.01 91.12 95.72 5.05%Commission income (Mil)

19.53 17.89 13.42 15.21 13.34%


58%

27%15%


Other deposits

Cash Margins

Total expenses saw an increase of 10.39% Q-o-Q to amount to JOD 63.34 million compared to JOD 57.38 million in the same period last year, where salaries and provisions were the major movers during the period.

Net credit facilities were up 4.54% YTD amounting to JOD 1,242.01 million compared to JOD 1,188.00 million, while non performing loans stood at JOD 115.85 million. Noting that the large corporation loans formed the biggest part of the bank’s loan portfolio.



21


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 2616.67 2650.29 2702.63 2288.49 -15.32%Total Equity (Mil) 254.88 270.11 284.29 307.05 8.01%Capital (Mil) 150.00 150.00 165.00 175.00 6.06%DepositsSaving and Term deposits (Mil) 1285.00 1355.09 1011.65 N/A N/AOther deposits (Mil) 420.26 441.99 449.54 N/A N/ACash Margins (Mil) 242.38 268.54 257.39 298.99 16.16%Total deposits (Mil) 1947.64 2065.62 1718.58 1806.65 5.12%Due to Banks (Mil) 350.56 200.07 120.69 92.9 -23.03%Total Investments (Mil) 626.66 548.46 310.58 390.59 25.76%LoansLarge Corps (Mil) 599.88 622.59 575.01 599.9 4.33%SMEs (Mil) 228.58 228.91 218.28 227.43 4.19%Retail (Mil) 375.15 433.75 352.38 378.7 7.47%Mortgages (Mil) 96.93 113.26 144.82 156.03 7.74%Government (Mil) 13.23 27.63 25.87 24.77 -4.25%Total Loans (Mil) 1313.77 1426.14 1316.36 1386.83 5.35%Net Credit Facilities (Mil) 1178.23 1274.02 1188.00 1242.01 4.55%Loans / Deposits Ratio % 67.45% 69.04% 76.60% 76.76% N/ANon Performing Loans (Mil) 176.29 186.97 165.53 186.65 12.76%Loans Provisions (Mil) 88.06 99.85 104.36 115.85 11.01%NPL Ratio % 13.42% 13.11% 12.57% 13.46% N/ANPL Coverage Ratio % 49.95% 53.40% 63.05% 62.07% N/ACapital Adequacy % 11.60% 11.38% 11.90% 13.47% N/A



22

Capital Bank Of Jordan(EXFB)


First established as the Export and Finance Bank at an authorizedcapital of JOD 20 million, which has steadily increased over theyears to reach JOD 150 million under the bank’s new identity asCapital Bank. The bank also offers services in the Iraqi marketthrough the National Bank of Iraq (NBI) in which it owns acontrolling stake. It is also worth mentioning that the bank hasreceived official approvals to establish a fully-owned subsidiarywithin the DIFC, which will offer corporate finance services.

Capital Bank’s Q3 2014 results reflect a sharp improvement inprofitability. Net income grew to reach JOD 26.22 million, up9.16% Q-o-Q, while net interest income advanced to amount toJOD 37.5 million compared to JOD 32.47 million, an increase of15.50% Q-o-Q.

Other revenues advanced to reach JOD 11.99 million compared to JOD 4.57 million, meanwhile provision for impairment loss in direct credit facilities amounted to JOD 9.13 million compared to JOD 1.82 million Q-o-Q, resulting in an increase in total expenses of around 34.52% to amount to JOD 35.51 million in Q3 2014 as opposed to JOD 26.39 million in the same period last year.

61%

6%17% 14%

2%



60%

31% 9%




Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth



32.21 19.71 15.11 15.93 5.43%


1.2

1.4

1.6

1.8

2

2.2

2.4

EXFB

The bank’s total deposits grew 11.80% to amount to 1,392.28 million during Q3 2014 compared toJOD 1,245.28 million at the end of 2013, while total credit facilities witnessed an increase of 15.43%compared to full year 2013 to amount to JOD 848.78 million. The main loan categories that saw majorincreases are the government and SME’s loans, increasing 48.03% and 26.08% respectively comparedto last year.

The bank’s non-performing loans edged up 33.34% during Q3 2014, to result in an NPL ratio of11.25% compared to 9.74% in the previous period. Additionally, the bank’s loan provisions went up26% to reach JOD 44.37 million during the period, leading to a coverage ratio of around 46.48%rather than 49.20%.

During 2014, the bank distributed total dividend per share of JOD 0.10, while also increasing itscapital by JOD 16.50 million through distributing bonus shares to reach a total of JOD 181.50 million.


23Source: ASE, Bloomberg, Bank’s Financials

2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 1395.84 1606.92 1886.58 2006.572 6.36%Total Equity (Mil) 204.06 223.46 264.16 271.39 2.74%Capital (Mil) 150.00 150.00 165.00 181.50 10.00%DepositsSaving and Term deposits (Mil) 673.58 678.18 817.58 839 N/AOther deposits (Mil) 214.33 282.79 322.76 433.27 N/ACash Margins (Mil) 57.75 70.2 104.94 120.01 14.36%Total deposits (Mil) 945.66 1031.17 1245.28 1392.28 11.80%Due to Banks (Mil) 123.84 82.54 103.02 137.38 33.35%Total Investments (Mil) 362.10 555.75 629.37 631.54 0.34%LoansLarge Corps (Mil) 517.94 438.39 451.94 517.95 14.61%SMEs (Mil) 28.72 31.3 39.15 49.36 26.08%Retail (Mil) 76.61 92.19 119.83 139.61 16.51%Mortgages (Mil) 82.57 97.07 110.72 121.61 9.84%Government (Mil) 16.48 14.65 13.68 20.25 48.03%Total Loans (Mil) 722.32 673.6 735.32 848.78 15.43%Net Credit Facilities (Mil) 655.86 623.31 676.37 774.77 14.55%Loans / Deposits Ratio % 76.38% 65.32% 59.05% 60.96% N/ANon Performing Loans (Mil) 134.91 81.23 71.59 95.46 33.34%Loans Provisions (Mil) 47.75 34.28 35.22 44.37 25.98%NPL Ratio % 18.68% 12.06% 9.74% 11.25% N/ANPL Coverage Ratio % 35.39% 42.20% 49.20% 46.48% N/ACapital Adequacy % 15.44% 17.95% 17.54% 16.16% N/A



24

Bank Al Etihad(UBSI)


Bank al Etihad, previously known as Union Bank, is a Jordan-based financial and banking services institution, established in1978 as a public shareholding company with a paid up capital ofJOD 110 million and a capital base in excess of JOD 250 millionand a capital adequacy ratio of 15% in which it operates agrowing network in Jordan.

1

1.3

1.6

1.9

2.2

2.5

UBSI

The bank was originally well known to be strong in corporatebanking which has been the competitive edge of the bank. In year2012, the bank started a rebranding campaign combined with anew growth strategy which focuses on gaining market share in theretail sector.

The bank had impressive results in Q3 2014 reporting a netincome of around JOD 18.67 million, up 18.84% Q-o-Q.Meanwhile, interest income grew 22.35% Q-o-Q and reachedJOD 89.29 million compared to JOD 72.98 million in the sameperiod last year.

70%

4%7%

16% 3%



74%

15%11%

Saving and Term depositsOther deposits Cash Margins



Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth


76.34 100.78 72.98 89.29 22.35%


12.71 12.88 9.17 9.32 1.64%


Salaries expense saw a massive increase of 18.83% to come to JOD 14.07 million during Q3 2014 comparedto JOD 11.84 million in the same period last year, while other expenses soared 18.25% Q-o-Q to stand atJOD 8.49 million compared to JOD 7.18 million.

Total deposits edged up 15.85% during Q3 2014 and reached JOD 1,687 million compared to JOD1,456.51 million at the end of 2013. Credit facilities surged 10.95% Y-o-Y and reached JOD 1,194.83million while witnessing major changes in the loan portfolio for the third quarter of 2014 period. Retailloans grew 35.77% Y-o-Y while SME’s loans advanced 28.83% Y-o-Y, on the other hand government loansdeclined 35.06% Y-o-Y to reach JOD 36.26 million. Non-performing loans inched down 2.81% Y-o-Y toreach JOD 83.27 million which resulted in an NPL ratio of 6.97% compared to 7.91% at the end of 2013.

During 2014, the bank distributed total dividend per share of JOD 0.06 for the year 2013.


25


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 1461.54 1750.12 1927.91 2106.54 9.27%Total Equity (Mil) 224.91 235.04 252.14 263.92 4.67%Capital (Mil) 100.00 100.00 110.00 110.00 0.00%DepositsSaving and Term deposits (Mil) 759.63 815.59 1005.32 N/A N/AOther deposits (Mil) 114.67 149.44 200.27 N/A N/ACash Margins (Mil) 185.52 266.44 250.92 114.69 -54.29%Total deposits (Mil) 1059.81 1231.47 1456.51 1687.34 15.85%Due to Banks (Mil) 141.54 261.85 284.86 96.1 -66.26%Total Investments (Mil) 254.58 244.84 450.26 559.2 24.19%LoansLarge Corps (Mil) 508.88 597.79 766.59 836.97 9.18%SMEs (Mil) 52.12 63.91 40.97 52.78 28.83%Retail (Mil) 39.97 60.13 60.64 82.33 35.77%Mortgages (Mil) 163.74 147.52 159.51 186.3 16.80%Government (Mil) 17.82 42.88 55.84 36.26 -35.06%Total Loans (Mil) 782.53 912.23 1083.55 1194.64 10.25%Net Credit Facilities (Mil) 723.79 836.53 1014.82 1125.93 10.95%Loans / Deposits Ratio % 73.84% 74.08% 74.39% 70.80% N/ANon Performing Loans (Mil) 106.54 96.68 85.68 83.27 N/ALoans Provisions (Mil) 43.75 55.84 53.2 52.48 -1.35%NPL Ratio % 13.61% 10.60% 7.91% 6.97% N/ANPL Coverage Ratio % 41.06% 57.76% 62.09% 63.02% N/ACapital Adequacy % 16.88% 14.68% 15.15% N/A N/A



26

Arab Jordan Investment Bank(AJIB)


1

1.3

1.6

1.9

2.2

2.5

2.8

3.1

3.4

AJIB

After the acquisition the bank has expanded its network to coverhighly populated areas and commercial districts across Jordan.AJIB also has a regional and international presence in Cyprus andQatar, while it owns 25% of Jordan International Bank (JIB)which provides professional banking and investment services forcompanies in or outside the UK.

AJIB generated robust profits for the first nine months of2014, where net income grew 39.23% to amount to JOD 17.00million compared to JOD 12.21 million in the same period lastyear. While interest income impressively increased 19.63% Q-o-Q, standing at JOD 52.9 million.

18%

33%

16%

16% 17%



64%

30%6%


Other deposits

Cash Margins



Deposits Structure

Loans Structure


Stock Highlights


The Arab Jordan Investment Bank (AJIB) was founded in1978, to become the first investment bank in Jordan, offering awide variety of investment, commercial and private bankingproducts and solutions. Earlier this year as part of its strategicefforts to expand its operations, the bank has acquired HSBCBank Middle East banking business in Jordan; the bank’s businesscomprised at the end of September 2013 of four branches withgross assets of about USD 1.2 billion.

Stock Performance

2012 2013Q3

2013Q3

2014 GrowthInterest Income (Mil)

54.67 59.10 44.22 52.90 19.63%


4.48 4.71 3.33 4.56 36.94%


After the acquisition, the bank witnessed an enormous growth in its loan portfolio, where SME’sloans substantially increased by 562.22% to amount to JOD 226.48 million compared to JOD 34.20million. Large Corps, Retail, and Mortgage loans witnessed also major increases of53.10%, 53.60%, and 22.00% respectively.

Total deposits again saw an increase of 70.70% to reach JOD 1039.17 million compared to JOD617.93 million, this increase was fueled by the acquisition.

During 2014, the bank distributed total dividend per share of JOD 0.13. Additionally, the bank hasincreased its capital by JOD 50 million through a secondary offering, summing up AJIB’s capital intoJOD 150 million.


27


2011 2012 2013 Q3 2014 Growth

Total Assets (Mil) 927.26 1032.91 1198.71 1691.15 41.08%Total Equity (Mil) 129.84 155.12 138.55 191.06 37.90%Capital (Mil) 100.00 100.00 100.00 150.00 50.00%DepositsSaving and Term deposits (Mil) 407.23 423.381 385.94 N/A N/AOther deposits (Mil) 138.03 148.463 194.67 N/A N/ACash Margins (Mil) 25.52 26.45 37.32 64.00 71.49%Total deposits (Mil) 570.79 598.294 617.93 1039.17 68.17%Total Investments (Mil) 211.21 261.642 306.26 387.09 26.39%Due to Banks (Mil) 361.22 362.767 457.8 598.04 30.63%Loans Large Corps (Mil) 158.33 148.26 101.26 123.92 22.38%SMEs (Mil) 32.71 33.22 34.2 226.48 562.22%Retail (Mil) 64.18 78.78 60.74 110.69 82.24%Mortgages (Mil) 59.44 58.44 65.48 109.01 66.48%Government (Mil) 38.92 99.33 121.62 119.16 -2.02%Total Loans (Mil) 353.58 418.03 383.3 689.26 79.82%Net Credit Facilities (Mil) 332.2 391.93 377.31 632.13 67.54%Loans / Deposits Ratio % 61.95% 69.87% 62.03% 66.33% N/ANon Performing Loans (Mil) 30.09 32.27 10.00 63.6 536.00%Loans Provisions (Mil) 14.62 18.09 5.23 54.42 940.54%NPL Ratio % 8.51% 7.72% 2.61% 9.23% N/ANPL Coverage Ratio % 48.59% 56.06% 52.30% 85.57% N/ACapital Adequacy % 17.79% 17.50% 21.58% N/A N/A



28

Arab Banking Corporation(ABCO)

(JOD) Closing Price 1.0952-Week Range 1.29-0.99Average Traded Volume 44,321Free Float (%) 9.64%P/E 10.25P/BV 0.84Capital 110,000,000Market Cap 119,900,000Dividend Yield N/A

Arab Banking Corporation was incorporated in Jordan in 1990 asa Jordanian public shareholding company. It is a member of theArab Banking Corporation Group, one of the largest Arabinternational banks incorporated as a Bahrain joint stockcompany in 1980 with its head offices in the Kingdom of Bahrainand with branches and offices in all parts of the world. ArabBanking Corporation (Jordan) performs banking operations at itshead office in Amman while offering a complete range of services.

0.7

0.9

1.1

1.3

1.5

1.7

ABCO

During Q3 2014, interest income saw a slight increase of 4.72%Q-o-Q reaching JOD 48.57 million, while commission incomeadvanced to reach JOD 2.41 million in the same period. Totalexpenses slightly increased during the third quarter, up 5.1% Q-o-Q, while reaching JOD 18.65 million compared to JOD 17.73 inthe same period last year.

39%

2%

40%

14% 5%

Large Corps (Mil)SMEs (Mil)Retail (Mil)Mortgages (Mil)Government (Mil)


77%

21% 6%

Saving and Term deposits (Mil)

Other deposits (Mil)

Cash Margins (Mil)



Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth



2.74 2.38 1.83 2.41 31.69%


Net credit facilities ascended 4.83% in the first nine months of 2014 compared to FY 2014, standingat JOD 509.74 million compared to JOD 486.25 million at the end of 2013. Most of the loancategories went up except for government loans which tumbled 27.32% compared to the end of2013. On the other hand, total deposits advanced 11% to stand at JOD 700.05 million compared toJOD 628.77 million.

ABCO has been increasingly expanding over the years, starting back in 2005 where it has expandedits capital from JOD 34.5 million to a total of JOD 110 million in 2014 through stock dividends.


29


2011 2012 2013 Q3 2014 GrowthTotal Assets (Mil) 758.08 827.35 956.29 1085.875 13.55%Total Equity (Mil) 118.16 130.72 133.58 143.2854 7.27%Capital (Mil) 89.60 100.00 100.00 110.00 10.00%DepositsSaving and Term deposits (Mil) 360.73 388.3 491.24 514.02 4.64%Other deposits (Mil) 97.56 94.23 99.27 147.01 48.09%Cash Margins (Mil) 49.90 31.64 38.26 39.02 1.99%Total deposits (Mil) 508.20 514.17 628.77 700.05 11.34%Due to Banks (Mil) 104.50 93.23 143.83 189.45 31.72%Total Investments (Mil) 237.07 226.07 275.95 284.12 2.96%LoansLarge Corps (Mil) 188.31 189.1 188.54 212.56 12.74%SMEs (Mil) 0.00 0.00 10.41 11.24 7.97%Retail (Mil) 161.71 193.74 208.68 216.93 3.95%Mortgages (Mil) 57.81 63.86 69.37 73.74 6.30%Government (Mil) 8.25 40.05 36.86 26.79 -27.32%Total Loans (Mil) 416.08 486.75 513.86 541.26 5.33%Net Credit Facilities (Mil) 394.31 462.64 486.25 509.74 4.83%Loans / Deposits Ratio % 81.87% 94.67% 81.72% 77.32% N/ANon Performing Loans (Mil) 27.25 28.38 28.88 32.44 12.33%Loans Provisions (Mil) 15.49 17.11 20.05 22.57 12.57%NPL Ratio % 6.55% 5.83% 5.62% 5.99% N/ANPL Coverage Ratio % 56.84% 60.29% 69.43% 69.57% N/ACapital Adequacy % 24.70% 20.93% 23.12% N/A N/A



30

Jordan Dubai Islamic Bank(JDIB)


In 2007, Dubai Islamic Bank along with its partner Jordan DubaiCapital started discussions with the shareholders of the IndustrialDevelopment Bank to convert and restructure it into a fullyfledged Islamic Commercial Bank. Together with the namechange, the charter documents have also been revised to reflectthe bank’s identity as a Sharia compliant.

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The bank’s core operations went up during the third quarter of2014 as deferred sale revenues soared 12.96%, while revenues ofleased assets went up by 20.46% compared to Q3 2013.

JDIB’s net income however has dropped 40.24% Q-o-Q, JOD0.73 million compared to JOD 1.23 million in the same periodlast year.

24%

61%

8%7%

Individuals Major Companies MortgagesGovernment


81%

19%

Current Accounts

Cash Margins



Deposits Structure

Loans StructureProfitability figures

Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth

Deferred Sale Revenues

14.07 16.932 12.81 14.47 12.96%

Revenues of Leased Assets and Ijara

6.71 11.58 8.26 9.95 20.46%

Total Revenues of Joint Investment accounts

22.15 27.73 21.43 22.81 6.44%



31


Share of unrestricted investment accounts holders item and investment risk fund item (which arebasically reserves) recorded an increase of around 40.43% and 59.81% respectively which wasreflected on the drop of net income.

The total Deferred (loans) during Q3 2014 recorded an increase of 19.04% Y-o-Y and reached JOD318.24 million compared to JOD 267.35 million at the end of 2013, in which retail loans edged up22.39% to amount to JOD 76.36 million. Meanwhile, deposits inched down around 1% during thesame period to amount to JOD 88.44 million.

The bank’s stock price reached the highest levels in April 2013, where the bank’s stock price reachedJOD 1.01. the stock’s price dropped gradually during 2014 to reach a low of JOD 0.76 which waswitnessed on the 21st of August, after that the stock bounced back to reach JOD 0.97.

The bank hasn’t paid cash or stock dividends yet for the past years.

2011 2012 2013 Q3 2014 Growth

Total Assets (Mil) 350.42 475.22 528.46 638.54 20.83%Total Equity (Mil) 115.06 127.06 129.32 129.59 0.21%Capital (Mil) 89.00 100.00 100.00 100.00 0.00%DepositsCurrent Accounts (Mil) 38.64 58.45 74.23 71.42 -3.79%Cash Margins (Mil) 4.46 17.32 15.06 17.02 13.01%Total deposits (Mil) 43.10 75.77 89.29 88.44 -0.95%

Deferred Sale Receivables

Individuals (Retail) 17.61 35.57 62.39 76.36 22.39%Major Companies (Mil) 186.37 213.13 179.40 195.49 8.97%Mortgages (Mil) 0.00 0.00 0.00 25.04 N/AGovernment (Mil) 0.00 33.95 25.56 21.35 -16.47%Total Deferred (Mil) 203.98 282.65 267.35 318.24 19.04%Net Deferred Sales & Other Receivables (Mil)

195.84 263.72 237.00 278.56 17.54%

Non Performing Loans (Mil) 8.79 8.74 16.52 10.97 -33.60%Impairment Provision (Mil) 1.35 4.27 6.19 7.38 19.22%NPL Ratio % 3.22% 2.29% 4.02% 3.45% N/ANPL Coverage Ratio % 15.30% 48.86% 37.47% 67.27% N/ACapital Adequacy % 50.08% 42.70% 44.11% N/A N/A



32

Societe Generale De Banque – Jordanie (SGBJ)


The Middle East Investment Bank was established in 1965 andcontinued to operate under that name until in 2003 SocieteGenerale De Banque Au Liban (SGBL) acquired a part of thebank and changed its name to Societe Generale De Banque –Jordanie . SGBJ provides commercial banking and investmentservices, as it offers various products and services.

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Societe Generale Q3 2014 results revealed a surge in earningsQ-o-Q. Net income amounted to JOD 7.05 million compared toJOD 5.09 million in the same period last year, up 35% Q-o-Q, while interest income soared 34.89% during Q3 2014 toreach JOD 31.70 million compared to JOD 23.50 million in thesame period last year.

31%

5%

13%

20%2%



76%

12%12%


Other deposits

Cash Margins



Deposits Structure

Loans Structure


Stock Highlights


Stock Performance

2012 2013Q3

2013Q3

2014Growth


22.62 33.70 23.50 31.70 34.89%


2.23 2.38 1.81 1.45 -19.89%


Total expenses increased by 43% Y-o-Y which was mainly as a result of the increase in provision forimpairment of direct credit facilities which has reached JOD 0.63 million compared with a recoveryfrom provisions recorded last year that amounted to JOD 0.13 million.

The bank witnessed growth in total loans, where they have reached a total of JOD 304.51 millionduring Q3 2014 increasing 31.60% since last year. Retail loans expanded during Q3 2014, which sawan increase of 39.00% Y-o-Y to stand at JOD 38.67 million, while Mortgages advanced 9.46% Y-o-Y, to reach JOD 59.62 million.

Non-performing loans saw an increase of 9.84% Y-o-Y and were spotted at JOD 19.09 million duringwhich NPL ratio has dropped from 7.45% to 6.27% during the period.

The bank hasn’t paid cash or stock dividends yet for the past years.


33


2011 2012 2013 Q3 2014 Growth

Total Assets (Mil) 360.97 479.47 640.8 741.44 15.71%Total Equity (Mil) 60.18 105.31 112.31 119.36 6.28%Capital (Mil) 50.00 100.00 100.00 100.00 0.00%DepositsSaving and Term deposits (Mil) 217.12 277.61 343.71 447.49 N/AOther deposits (Mil) 44.71 48.44 51.65 67.08 N/ACash Margins (Mil) 17.68 28.29 54.74 72.28 32.04%Total deposits (Mil) 279.51 354.34 450.1 586.85 30.38%Due to Banks (Mil) 4.31 2.68 4.44 1.48 -66.67%Total Investments (Mil) 131.22 159.85 283.27 247.68 -12.56%LoansLarge Corps (Mil) 65.76 78.07 99.35 96.01 -3.36%SMEs (Mil) 23.38 30.87 53.71 58.79 9.46%Retail (Mil) 46.86 52.77 27.82 38.67 39.00%Mortgages (Mil) 34.75 49.41 52.29 59.62 14.02%Government (Mil) 0 0 0 51.42 N/ATotal Loans (Mil) 170.75 211.12 233.17 304.51 30.60%Net Credit Facilities (Mil) 135.59 171.03 217.74 287.32 31.96%Loans / Deposits Ratio % 61.09% 59.58% 51.80% 51.89% N/ANon Performing Loans (Mil) 37.79 42.28 17.38 19.09 N/ALoans Provisions (Mil) 8.23 9.08 6.54 7.16 9.48%NPL Ratio % 22.13% 20.03% 7.45% 6.27% N/ANPL Coverage Ratio % 21.78% 21.48% 37.63% 37.51% N/ACapital Adequacy % 25.25% 36.07% 33.49% 29.82% N/A



34

Investbank(INVB)

(JOD) Closing Price 1.2452-Week Range 1.69-1.21Average Traded Volume 18,214Free Float (%) 20.42P/E 10.44P/BV 0.89Capital 100,000,000Market Cap 126,000,000Dividend Yield 5.56%

Investbank started its activities in 1982 under the name JordanInvestment and Finance Corporation with an authorized capitalof JOD 6 million, the bank transformed into an investment bankin year 1989 and grew significantly from then, where it now hasthe paid up capital of JOD 100 million. The bank had animportant role in establishing Jordan Duty Free Shops (JDFS) –one of the largest market caps in the ASE - and currently owns10% of the company.

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Investbank latest financials (H1 2014) announced an increase of8.02% in interest income while witnessing a drop of 5.42% incommission income during H1 2014; the bank’s net income hasdropped 14% to reach JOD 6.31 million during H12014, compared to JOD 7.33 million in the same period last year.

Salaries have increased 13.72% during the first half of2014, while total expenses went up 24 percent which wasreflected on the drop of net income during H1 2014.

63%

9%

12%16%

Large Corps (Mil)SMEs (Mil)Retail (Mil)Mortgages (Mil)


78%

15%7%

Saving and Term deposits (Mil)

Other deposits (Mil)

Cash Margins (Mil)



Deposits Structure

Loans Structure


Stock Highlights


2011 2012H1

2012H1

2013Growth

Interest Income (Mil) 45.59 48.18 23.83 25.74 8.02%Commission income (Mil)

4.92 5.60 2.77 2.62 -5.42%


Stock Performance

The bank’s core operations in terms of loans and deposits were strong during H1 2014 compared tothe end of last year. Saving and term deposits climbed 19.27 percent, which made the total depositsincrease 5.16 percent, noting that the saving and term deposits formed 63 percent of the totaldeposits. The Loan portfolio ascended 5.94 percent to reach JOD 496.76 million compared with H12013, while the non performing loans were dropped 9.64 percent.

During 2014, the bank distributed total dividend per share of JOD 0.07 for the year 2013.


35


2011 2012 FY 2013 H1 2014 Growth Total Assets (Mil) 691.77 708.51 778.92 797.12 2.34%Total Equity (Mil) 131.9 135.23 139.53 139.61 0.06%Capital (Mil) 85.25 100.00 100.00 100.00 0.00%DepositsSaving and Term deposits (Mil) 340.315 401.63 386.03 460.4 19.27%Other deposits (Mil) 129.311 139.19 131.84 89.46 -32.15%Cash Margins (Mil) 53.518 56.34 44.08 41.07 -6.83%Total deposits (Mil) 523.145 597.16 561.95 590.93 5.16%Due to Banks (Mil) 18.2703 11.04 46.65 22.54 -51.68%Total Investments (Mil) 168.397 127.15 145.61 156.9 7.75%Loans Large Corps (Mil) 250.91 285.3 309.62 312.99 1.09%SMEs (Mil) 31.09 49.68 34.37 44.93 30.72%Retail (Mil) 42.8 38.71 49.25 57.78 17.32%Mortgages (Mil) 60.88 72.3 75.65 81.06 7.15%Government (Mil) 0.89 0.00 0.00 0.00 N/ATotal Loans (Mil) 386.57 445.99 468.89 496.76 5.94%Net Credit Facilities (Mil) 350.01 404.31 430.88 457.63 6.21%Loans / Deposits Ratio % 73.89% 74.69% 83.44% 84.06% N/ANon Performing Loans (Mil) 50.78 53.86 61.43 55.51 -9.64%Loans Provisions (Mil) 31.32 33.89 29.84 30.06 0.74%NPL Ratio % 13.10% 12.08% 13.10% 11.17% N/ANPL Coverage Ratio % 61.68% 62.92% 48.58% 54.15% N/ACapital Adequacy % 18.03% 16.49% 15.09% 14.88% N/A



36

Jordan Commercial Bank(JCBK)

(JOD) Closing Price 1.1352-Week Range 0.99-1.29Average Traded Volume 44,321Free Float (%) 9.35P/E 23.82P/BV 0.99Capital 100,000,000Market Cap 109,000,000Dividend Yield N/A

Jordan Commercial Bank is a Jordan-based public shareholdingcompany that was established in 1977 and was named JordanGulf Bank. In 2009 it was renamed as Jordan Commercialbank, the bank is specialized in providing commercial bankingand investment solutions.

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Jordan Commercial Bank’s latest financials (H1 2014) reportednet income of JOD 0.66 million, a decline of 76.26% Y-o-Y, whileinterest income reached JOD 33.97 million, up 23% Y-o-Y. Themain reason behind the drop in net income was the 29% increaseof total expenses which reached JOD 18.20 million compared toJOD 14.06 million Y-o-Y.

The bank witnessed an increase of 4.17% in the total creditfacilities in which they stood at JOD 602.94 million in H1 2014compared to the end of 2013 where they reached JOD 578.79million.

52%

14%

20% 11% 3%

Large Corps (Mil)SMEs (Mil)Retail (Mil)Mortgage (Mil)


76%

19%7%

Saving and Term deposits (Mil)Other deposits (Mil)Cash Margins (Mil)



Deposits Structure

Loans Structure


Stock Highlights


2012 2013H1

2013H1

2014Growth


45.61 57.05 26.15 33.97 29.90%


5.33 5.87 2.79 2.66 -4.66%


Stock Performance

The largest loan category that witnessed an increase was retail loans which increased compared to FY2013 by 14.31%, while large corporation loans grew 9.91% in the same period. Non-performingloans rose 11.58% to amount to JOD 89.32 million in H1 2014, making the NPL ratio rise to14.81% compared to 13.83% at the end of 2013.

The bank has stopped distributing dividends since 2009 due to a deterioration in profitability.


37


2011 2012 2013 H1 2014 Growth

Total Assets (Mil) 801.44 844.34 1056.53 1193.15 12.93%Total Equity (Mil) 91.84 103.47 115.6 114.31 -1.12%Capital (Mil) 82.77 93.34 100.00 100.00 0.00%DepositsSaving and Term deposits (Mil) 498.567 448.69 591.74 680.96 15.08%Other deposits (Mil) 111.275 169.81 151.27 179.74 18.82%Cash Margins (Mil) 39.1656 57.29 65.35 64.51 -1.29%Total deposits (Mil) 649.007 675.79 808.36 925.21 14.46%Due to Banks (Mil) 44.3563 38.85 112.18 131.38 17.12%Total Investments (Mil) 202.052 174.69 272.4 352.59 29.44%LoansLarge Corps (Mil) 248.76 253.34 287.28 315.76 9.91%SMEs (Mil) 70.11 79.59 91.22 83.79 -8.15%Retail (Mil) 37.14 59.39 105.41 120.49 14.31%Mortgages (Mil) 85.44 79.5 78.74 68.31 -13.25%Government (Mil) 18.8 19.07 16.14 14.59 -9.60%Total Loans (Mil) 460.25 490.89 578.79 602.94 4.17%Net Credit Facilities (Mil) 420.31 440.52 519.46 538.89 3.74%Loans / Deposits Ratio % 70.92% 72.64% 71.60% 65.17% N/ANon Performing Loans (Mil) 81.92 84.97 80.05 89.32 11.58%Loans Provisions (Mil) 30.01 36.34 40.6 43.72 7.68%NPL Ratio % 17.80% 17.31% 13.83% 14.81% N/ANPL Coverage Ratio % 36.63% 42.77% 50.72% 48.95% N/ACapital Adequacy % 10.68% 12.21% 12.24% 11.63% N/A


38

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• AWRAQ Investments and its affiliates obtain information from sources they believe to be reliable, but do not warrantits accuracy or fitness for a particular purpose, and disclaim for themselves and their information providers all liabilityarising from the use.

• The Information in this publication is provided in good faith for informational purposes only. The informationprovided is not offered as tax, legal, or investment advice, or an offer to buy or sell securities or otherwise. Theinformation provided in this publication may be displayed and printed for your personal, non-commercial use only. Youmay not reproduce, re-transmit, distribute, disseminate, sell, publish, broadcast, or circulate the information in any formor media to anyone, without the expressed written consent of AWRAQ Investments.

• AWRAQ Investments is not liable for any loss resulting from any action taken or reliance made by any person on anyinformation or material posted by it. You should make your own inquiries and seek independent advice from relevantindustry professionals before acting or relying on any information or material made available to you in this publication.You rely on this information at your own risk.

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