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- Al-Salem: The board recommends distributing a 15% cash dividend to shareholders for the year 2023
- Al-Aloul: The excellent financial results reflect our commitment to building a strong and flexible financial group with highly competitive capabilities
Capital Bank Group released its financial results for the fiscal year ending on December 31, 2023, reporting a significant 17% increase in net profits after tax that reached JOD 106.6 million. This growth was fueled by a comprehensive strategic plan that revolved around digital transformation, improved customer experiences, and sustainable growth.
Bassem Khalil Al-Salem, Chairman of Capital Bank Group, emphasized that these outstanding results underscore the group's financial strength and meticulous strategic planning. The group's assets, he noted, increased by 9.1% at the end of 2023, reaching JOD 7.6 billion, compared to JOD 7 billion at the end of 2022, further reflecting the growth in the group's banking activities and enhancing its market share.
Al-Salem also stated that the Group’s total customers’ deposits rose by 12.2% to JOD 5.5 billion, up from JOD 4.9 billion, while net credit facilities increased by 5%, from JOD 3.2 billion in 2022 to JOD 3.4 billion at the end of 2023.
Al-Salem announced that the board of directors has recommended a cash dividend of 15% to shareholders for the year 2023, pending the approval of the Central Bank of Jordan.
“We are proud of the outstanding financial performance in 2023, which reflects our commitment to building a strong and flexible financial group distinguished by its highly competitive capacities on a regional level,” commented Samer Al-Aloul, Acting CEO of Capital Bank Group, noting that group’s strategic approach to sustainable growth has been instrumental in achieving robust operational performance, enhancing risk management capabilities, and maintaining a dedication to responsible banking practices.
Al-Aloul also stated that the group's net revenues increased by 64.7% year-on-year, from JOD 210.6 million to JOD 346.9 million by year-end 2023. The group also increased provisions for expected credit losses, from JOD 28 million in 2022 to JOD 73 million at year-end 2023, aligning with a prudent credit and sustainable growth policy that hedges against economic fluctuations.
Moreover, net equity attributable to the group's shareholders grew to JOD 659 million by the end of 2023, compared to JOD 617 million in 2022, positively impacting the regulatory capital adequacy ratio, which exceeded 15% — higher than the required limit set by the regulatory authority.
Ayman Abu Dhaim, CEO of the National Bank of Iraq (NBI), said that the bank had achieved exceptional financial results that saw total assets grow by approximately 65% to reach JOD 2.2 billion at the end of 2023. The net credit facilities portfolio, meanwhile, rose by 38% to reach JOD 709 million, with growth primarily centered within the retail sector, while customer deposits also grew by 90% to reach JOD 1.6 billion by the end of 2023. The total volume of export letters of credit reached USD 660 million during the year, aided by the expansion of NBI’s network of correspondent banks to 30 worldwide.
Abu Dhaim added that the bank has a growing customer base of around 210,000 clients, served by over 1,000 employees, 27 branches, and 190 ATMs. Moreover, the bank has successfully domiciled the salaries of more than 175,000 government employees.
About Capital Bank Group
Capital Bank Group is considered one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion, while the total equity is nearly JOD 728 million.
Capital Bank Group includes Capital Bank, which since its inception in 1995, has grown to become one of the top financial institutions in Jordan, offering the Jordanian market a comprehensive set of commercial and investment banking services and solutions tailored to the needs of retail and corporate clients alike.
In 2005, Capital Bank (Jordan) purchased majority shares of the National Bank of Iraq (61.85%), which enabled NBI to develop its products and services, strengthen its foothold and enhance financial inclusion at the country level, support export activities and provide all services to Jordanian companies operating In Iraq. In 2021, the National Bank of Iraq continued to realize its expansion strategy by launching its first branch in the Kingdom of Saudi Arabia to provide financial and trade services to its corporate clients.
As for Capital Investments, it is a wholly owned subsidiary of Capital Bank established in 2006 and is set as a regional leader in providing comprehensive investment banking services that include asset management, brokerage as well as corporate financial advisory. The company serves a diverse array of local, regional, and international clientele, including major corporations, government entities, and high-net-worth individuals through its offices in Jordan and the United Arab Emirates / Dubai International Financial Center (DIFC).
Further building on its ambitious expansion strategy, Capital Bank Group also acquired Bank Audi’s operations in both Jordan and Iraq in 2021 and followed that milestone in 2022 with the acquisition of the branches and operations of Société Générale Bank in Jordan, strengthening its competitive position in the Jordanian banking market. In early 2022, Capital Bank launched its digital bank - Blink, to re-imagine the way people conduct their banking operations, targeting young individuals.
In June 2022, Capital Bank raised its capital through issuing new shares in favor of the Public Investment Fund (PIF) – one the largest sovereign funds worldwide – as a strategic investor in Capital Bank. with a 23.97% stake, a milestone which will enable the Group to implement its expansion strategy and introduce new products and services to meet the needs of its clients and benefit its shareholders.
For more information, please visit Capital Bank website: www.capitalbank.jo