Jul 02 2015
Iraq remains promising country with big opportunities for Capital Bank of Jordan
AMMAN -- Capital Bank of Jordan was authorised last week by the Jordan Securities Commission ( JSC ) to raise its capital from JD181.5 million to JD200 million.
The JD18.5 million capital increase will be carried out through capitalising the amount from the JD44.16 million of retained earnings and distributing bonus shares at a rate of 10.19 to shareholders registered in the company's records at the end of July 7, 2015, which is 15th day from the date of the JSC approval, as required.
Chairman Bassem Khalil Al Salem told the shareholders that the board of directors decided to propose the distribution of cash dividends at a rate of 10 per cent and bonus shares at a rate of 8,8 per cent, but the Central Bank of Jordan ( CBJ ) found it more appropriate that the cash dole out be at a rate of 6 per cent leaving the rate on bonus shares to Capital Bank 's discretion.
Consequently, he said, the board opted to distribute bonus shares so that the bank's capital would become JD200 million and to distribute JD10.9 million in cash dividends at a rate of 6 per cent as approved by the CBJ .
Asked about the reason behind the CBJ 's request for the change, Salem replied that the central bank was reserved because of the security situation in Iraq and the bank's large investment there, as it owned 62 per cent of the National Bank of Iraq (NBI).
The stake was 80 per cent until the Central Bank of Iraq asked all commercial banks to raise their capital to 250 billion Iraqi dinars.
It was for this reason, the chairman elaborated, that Capital Bank sold part of its shares to Cairo Amman Bank (about 10 per cent), Palestine Telecommunications Company (5 per cent) and Fursan Investment Fund (3.5 per cent).
"It was the [ central bank 's] view that we do not broaden our dividend distribution, but rather concentrate on building up a strong capital base and maintain a 14 per cent capital adequacy ratio for Jordan branches as a kind of safeguard," the chairman indicated.
He mentioned several past and present challenges in the Iraqi market such as liquidity shortage due the security situation, government decisions and the halt to opening letters of credit, but he still stressed that the country remained promising with big opportunities, especially in the south of the country where the volume of different investments is very large and where many companies from various countries are operating.
Noting that Capital Bank was the only Jordanian bank that owns a local bank in Iraq, Salem pointed to companies operating in the oil and gas sector in south Iraq as examples of such opportunities.
He also pointed to the relationship that was established with Citibank through NBI, noting that when the transfer business started with it two years ago, the amount was $3 million but last month exceeded $50 million.
The chairman noted that Capital Bank , whose workforce comprises 557 employees, was taking all the necessary precautions to protect its interests and keep risks to a minimum, indicating that it focuses mainly on transfers, letters of credit, and letters of guarantee, and on working with major corporations, and international banks, such as Citibank.
The bank also supervises a number of investment projects, he remarked.
"Iraq is going through a transitory period that will pass away, and this investment will bring forth its aspired yield," the chairman said.
Salem added that Capital Bank will continue to build a base in Iraq through NBI and its branches in Basra, Um Qasr, Najaf, Karbala, Baghdad, Al Mansour, Erbil and Al Suleiymaniyeh, and through focusing on building a solid base of clientele.
He responded to shareholders' questions indicating that Dunes Club was expropriated as a result of around JD5 million lawsuit and that the home of Hussein Kubbah, a former chairman of Capital Bank who was ousted for misconduct after six months in the position, was also expropriated.
The chairman said that Kubbah's indebtedness at a certain stage about JD35 million, JD11 million of which was not covered with guarantees.
Noting that the bank was able to place a lien on a factory owned by Kubbah, Salem expected this issue to be settled before the end of this year.
According to the notes attached to the bank's financial statements as of December 31, 2014, the balance of assets under the bank's possession in settlement of overdue loans amounted to JD64.5 million. Other impounded real estate was valued at JD16.1 million.
In the 2014 annual report, Salem wrote in a foreword that the rate of non-performing loans to the total portfolio of credit facilities dropped to 5.8 per cent from 6.7 per cent at the end of 2013.
However, at the end of the first quarter of this year, the rate rises again to 6.1 per cent, or JD54.7 million after deducting suspended interest.
The balance sheet at the end of March 2015 shows non-performing loans at JD81.4 million, 8.7 per cent of total direct credit facilities, before deducting suspended interest.
Net credit facilities amounted to JD870.2 million on March 31, 2015 compared to JD794.4 million at the end of March 2014.
A breakdown of the lending, before deducting suspended interest and an impairment provision related to direct credit facilities, indicated that JD110.9 were credits to government and public sector, JD525.4 million to corporations, JD116.8 million to individuals (retail), JD55.2 million to small- and medium-sized enterprises, and JD128.8 million were classified as real estate loans.
By type of credit, real estate and construction accounted for JD210.9 million, trade JD125 million and industry JD116 million.
Total liabilities at the end of this year's first quarter stood at JD1.7 billion, JD1.2 billion of which were customer deposits.
Time deposits totaled JD760.9 million, savings JD60.5 million, JD374 million current accounts, and JD52.1 million were certificates of deposit.
Non-interest bearing deposits amounted to JD284.9 million or 22.8 per cent of the total, down from JD403 million or 32.7 per cent at the end of 2014.
The deposits of the Jordanian government and public sector came at JD84.4 million or 6.8 per cent of total deposits.
The chairman indicated in the foreword that last year's net profit before tax reached JD50.1 million, compared to JD48.7 million in 2013.
Net profit after tax came at JD36.3 million, down from JD37 million.
During the general assembly meeting, attended by eight board members out of 11 and 111 shareholders out of 2,218, Omar Akram Emran Al Bitar and Reem Haitham Jamil Qussous joined the board of directors after the number was expanded to 13 members.
[You must be registered and logged in to see this link.]
Iraq remains promising country with big opportunities for Capital Bank of Jordan
AMMAN -- Capital Bank of Jordan was authorised last week by the Jordan Securities Commission ( JSC ) to raise its capital from JD181.5 million to JD200 million.
The JD18.5 million capital increase will be carried out through capitalising the amount from the JD44.16 million of retained earnings and distributing bonus shares at a rate of 10.19 to shareholders registered in the company's records at the end of July 7, 2015, which is 15th day from the date of the JSC approval, as required.
Chairman Bassem Khalil Al Salem told the shareholders that the board of directors decided to propose the distribution of cash dividends at a rate of 10 per cent and bonus shares at a rate of 8,8 per cent, but the Central Bank of Jordan ( CBJ ) found it more appropriate that the cash dole out be at a rate of 6 per cent leaving the rate on bonus shares to Capital Bank 's discretion.
Consequently, he said, the board opted to distribute bonus shares so that the bank's capital would become JD200 million and to distribute JD10.9 million in cash dividends at a rate of 6 per cent as approved by the CBJ .
Asked about the reason behind the CBJ 's request for the change, Salem replied that the central bank was reserved because of the security situation in Iraq and the bank's large investment there, as it owned 62 per cent of the National Bank of Iraq (NBI).
The stake was 80 per cent until the Central Bank of Iraq asked all commercial banks to raise their capital to 250 billion Iraqi dinars.
It was for this reason, the chairman elaborated, that Capital Bank sold part of its shares to Cairo Amman Bank (about 10 per cent), Palestine Telecommunications Company (5 per cent) and Fursan Investment Fund (3.5 per cent).
"It was the [ central bank 's] view that we do not broaden our dividend distribution, but rather concentrate on building up a strong capital base and maintain a 14 per cent capital adequacy ratio for Jordan branches as a kind of safeguard," the chairman indicated.
He mentioned several past and present challenges in the Iraqi market such as liquidity shortage due the security situation, government decisions and the halt to opening letters of credit, but he still stressed that the country remained promising with big opportunities, especially in the south of the country where the volume of different investments is very large and where many companies from various countries are operating.
Noting that Capital Bank was the only Jordanian bank that owns a local bank in Iraq, Salem pointed to companies operating in the oil and gas sector in south Iraq as examples of such opportunities.
He also pointed to the relationship that was established with Citibank through NBI, noting that when the transfer business started with it two years ago, the amount was $3 million but last month exceeded $50 million.
The chairman noted that Capital Bank , whose workforce comprises 557 employees, was taking all the necessary precautions to protect its interests and keep risks to a minimum, indicating that it focuses mainly on transfers, letters of credit, and letters of guarantee, and on working with major corporations, and international banks, such as Citibank.
The bank also supervises a number of investment projects, he remarked.
"Iraq is going through a transitory period that will pass away, and this investment will bring forth its aspired yield," the chairman said.
Salem added that Capital Bank will continue to build a base in Iraq through NBI and its branches in Basra, Um Qasr, Najaf, Karbala, Baghdad, Al Mansour, Erbil and Al Suleiymaniyeh, and through focusing on building a solid base of clientele.
He responded to shareholders' questions indicating that Dunes Club was expropriated as a result of around JD5 million lawsuit and that the home of Hussein Kubbah, a former chairman of Capital Bank who was ousted for misconduct after six months in the position, was also expropriated.
The chairman said that Kubbah's indebtedness at a certain stage about JD35 million, JD11 million of which was not covered with guarantees.
Noting that the bank was able to place a lien on a factory owned by Kubbah, Salem expected this issue to be settled before the end of this year.
According to the notes attached to the bank's financial statements as of December 31, 2014, the balance of assets under the bank's possession in settlement of overdue loans amounted to JD64.5 million. Other impounded real estate was valued at JD16.1 million.
In the 2014 annual report, Salem wrote in a foreword that the rate of non-performing loans to the total portfolio of credit facilities dropped to 5.8 per cent from 6.7 per cent at the end of 2013.
However, at the end of the first quarter of this year, the rate rises again to 6.1 per cent, or JD54.7 million after deducting suspended interest.
The balance sheet at the end of March 2015 shows non-performing loans at JD81.4 million, 8.7 per cent of total direct credit facilities, before deducting suspended interest.
Net credit facilities amounted to JD870.2 million on March 31, 2015 compared to JD794.4 million at the end of March 2014.
A breakdown of the lending, before deducting suspended interest and an impairment provision related to direct credit facilities, indicated that JD110.9 were credits to government and public sector, JD525.4 million to corporations, JD116.8 million to individuals (retail), JD55.2 million to small- and medium-sized enterprises, and JD128.8 million were classified as real estate loans.
By type of credit, real estate and construction accounted for JD210.9 million, trade JD125 million and industry JD116 million.
Total liabilities at the end of this year's first quarter stood at JD1.7 billion, JD1.2 billion of which were customer deposits.
Time deposits totaled JD760.9 million, savings JD60.5 million, JD374 million current accounts, and JD52.1 million were certificates of deposit.
Non-interest bearing deposits amounted to JD284.9 million or 22.8 per cent of the total, down from JD403 million or 32.7 per cent at the end of 2014.
The deposits of the Jordanian government and public sector came at JD84.4 million or 6.8 per cent of total deposits.
The chairman indicated in the foreword that last year's net profit before tax reached JD50.1 million, compared to JD48.7 million in 2013.
Net profit after tax came at JD36.3 million, down from JD37 million.
During the general assembly meeting, attended by eight board members out of 11 and 111 shareholders out of 2,218, Omar Akram Emran Al Bitar and Reem Haitham Jamil Qussous joined the board of directors after the number was expanded to 13 members.
[You must be registered and logged in to see this link.]
Yesterday at 5:28 pm by Rocky
» utube MM&C 4/16/24 IQD Update - Iraq Dinar - America - Activate - Massive Economic Deals -
Yesterday at 5:24 pm by Rocky
» Al-Sudani urges the US corporation Honeywell to help finish the Basra refinery
Yesterday at 2:48 pm by Rocky
» Al-Sudani Meets with Representatives of Western Media Outlets in Washington
Yesterday at 2:46 pm by Rocky
» Chairman of the Investment Authority signs the United Nations Convention on International Mediation
Yesterday at 2:44 pm by Rocky
» PM: We will sign a contract to establish the Al-Faw refinery with a Chinese company
Yesterday at 2:42 pm by Rocky
» PM arrives in Houston as part of his visit to USA
Yesterday at 2:41 pm by Rocky
» Militia Man & Crew 4/18/24 Bush signed it and all presidents implemented it. Iraq’s funds have been
Yesterday at 1:46 pm by Rocky
» Association of Iraqi Private Banks: The suspension of some electronic payment services yesterday was
Yesterday at 7:14 am by Rocky
» Iraq is close to launching the electronic signature
Yesterday at 7:12 am by Rocky
» The Basra government discusses with an international oil company the implementation of social benefi
Yesterday at 7:11 am by Rocky
» The Prime Minister confirms to an American company: Gas projects in Iraq are a priority for the gove
Yesterday at 7:10 am by Rocky
» The Minister of Planning discusses with the World Bank mechanisms for scheduling external loans
Yesterday at 7:09 am by Rocky
» Oil sets the twenty-seventh of this month as the date for opening contracts for the fifth complement
Yesterday at 7:08 am by Rocky
» “Electronic begging”...professionalism and fabrication of stories” generates millions of dinars dail
Yesterday at 7:05 am by Rocky
» Al-Sudani calls on the American company Hanwell to contribute to the completion of the Basra refiner
Yesterday at 7:03 am by Rocky
» An American company expresses its willingness to establish LED lighting production lines in Iraq
Yesterday at 7:02 am by Rocky
» Including Iraq.. Iran announces the possibility of exporting 300 megawatts of “renewable electricity
Yesterday at 7:01 am by Rocky
» Political forces present two options to find an alternative to Al-Halbousi
Yesterday at 6:58 am by Rocky
» Parliament is awaiting the arrival of the budget schedules and the government is studying higher spe
Yesterday at 6:56 am by Rocky
» The International Monetary Fund adjusts its expectations for the development of the world’s economie
Yesterday at 6:54 am by Rocky
» A representative talks about the difficulty of finalizing the file of “electing the Speaker of Parli
Yesterday at 6:50 am by Rocky
» Work on preparing a law for diplomatic passports
Yesterday at 6:49 am by Rocky
» A female representative accuses the Ministry of Immigration of corruption
Yesterday at 6:47 am by Rocky
» Minister: Solving the Kurdistan salaries problem is the beginning of addressing other disputes betwe
Yesterday at 6:45 am by Rocky
» About 270 million dollars were sold by the Central Bank of Iraq in the currency auction
Yesterday at 6:42 am by Rocky
» The volume of trade exchange between Jordan and Iraq will exceed 800 million dinars in 2023
Yesterday at 6:41 am by Rocky
» Iraq signs memorandums of understanding with American companies in the fields of electricity, oil an
Yesterday at 5:31 am by Rocky
» The American company that manufactures the F16 expresses its readiness to implement the terms of con
Yesterday at 5:30 am by Rocky
» The volume of expected Qatari investments for the Iraq Fund for Development exceeds $3.5 billion
Yesterday at 5:29 am by Rocky
» Decrease in dollar prices in Baghdad and Erbil
Yesterday at 5:27 am by Rocky
» The President of the Region brings together the Kurdish parties to resolve the election file
Yesterday at 5:26 am by Rocky
» Al-Sudani receives in Washington the Chairman of JPMorgan
Yesterday at 5:25 am by Rocky
» Transport is starting to transform its ports into smart ones
Yesterday at 5:23 am by Rocky
» Sudanese reveals the volume of exchange with America
Yesterday at 5:22 am by Rocky
» "Al-Eqtisad News" publishes the memorandums of understanding signed between the Iraqi delegation and
Yesterday at 5:21 am by Rocky
» Al-Sudani urges an American company to contribute to establishing a chemical materials factory
Yesterday at 5:20 am by Rocky
» Iraq stresses the importance of Lockheed Martin's commitment to opening military aircraft maintenanc
Yesterday at 5:19 am by Rocky
» Iraq is on the verge of a “water disaster” by 2035
Yesterday at 5:18 am by Rocky
» Great satisfaction and optimism with the results of Sudanese’s visit to Washington
Yesterday at 5:16 am by Rocky
» Transport is beginning to adopt a plan to transform its ports into smart ones
Yesterday at 5:15 am by Rocky
» Completed 8,000 loan transactions at the Housing Bank
Yesterday at 5:14 am by Rocky
» Prime Minister: We plan to invest production capacities for export
Yesterday at 5:12 am by Rocky
» Transformation and partnership...a new horizon in Iraqi-American relations
Yesterday at 5:10 am by Rocky
» What is new in the economic dimension of the Washington visit?
Yesterday at 5:09 am by Rocky
» Two letters to the future
Yesterday at 5:08 am by Rocky
» National interests first
Yesterday at 5:06 am by Rocky
» Iraqi-American rapprochement...a national necessity
Yesterday at 5:05 am by Rocky
» Al-Sudani’s visit to Washington and the course of Iraqi-American relations
Yesterday at 5:04 am by Rocky
» Sudanese carries security, economic and development files to Washington
Yesterday at 5:03 am by Rocky
» Armament and military development... features of a sustainable partnership
Yesterday at 5:02 am by Rocky
» Analysts: Sudanese's visit to Washington will achieve excellent results in the future
Yesterday at 5:01 am by Rocky
» Iraqi-American relations...the legacy of the past and the aspirations of partnership
Yesterday at 5:00 am by Rocky
» Sudanese and external necessities
Yesterday at 4:59 am by Rocky
» The Strategic Framework Agreement... 7 important provisions
Yesterday at 4:58 am by Rocky
» Joint statement of the Iraqi-American discussions
Yesterday at 4:56 am by Rocky
» Supreme Coordinating Committee: Iraq's role is vital to the security and prosperity of the region
Yesterday at 4:55 am by Rocky
» Towards an effective bilateral economic relationship between Baghdad and Washington
Yesterday at 4:53 am by Rocky
» She saw it as a new, different chapter in Iraqi-American relations... Al-Sudani’s visit to Washingto
Yesterday at 4:52 am by Rocky
» Al-Sudani’s visit to Washington.. Implications and results
Yesterday at 4:51 am by Rocky
» Advisor to the Prime Minister: The relationship with America has moved to the stage of cooperation
Yesterday at 4:50 am by Rocky
» Sudanese sponsors the signing ceremony of memorandums of understanding in America
Yesterday at 4:47 am by Rocky
» Al-Sudani: The volume of exchange between Iraq and the United States does not exceed 10 billion doll
Yesterday at 4:46 am by Rocky
» During Erdogan's visit on Monday, Iraq seeks to sign the "Water Protocol" with Türkiye
Yesterday at 4:45 am by Rocky
» With the escalation of tension between Tehran and Tel Aviv...an expert reveals the secrets of Sudane
Yesterday at 4:43 am by Rocky
» There are 150 draft laws on the parliament table waiting to be voted on... and the debates require c
Yesterday at 4:42 am by Rocky
» Al-Sudani stresses the necessity of continuing the dialogue with the US Treasury, the Federal Reserv
Yesterday at 4:41 am by Rocky
» Deputy: We reject the term sanctions, and Iraq is financially independent
Yesterday at 4:38 am by Rocky
» Warnings of a “political impasse” after Barzani’s boycott of the elections... Al-Sadr raises questio
Yesterday at 4:37 am by Rocky
» The head of the Kurdistan Regional Government’s representative office in Baghdad visits the external
Yesterday at 4:36 am by Rocky
» Al-Sudani: There are no combat forces in Iraq to withdraw.. The Iraqi Prime Minister confirmed in Wa
Yesterday at 4:34 am by Rocky
» Do the Iraqi political blocs really intend to hold the second early elections?
Yesterday at 4:33 am by Rocky
» Baghdad is not aware of the factions’ participation in the attack on Israel, and Washington is revie
Yesterday at 4:32 am by Rocky
» Progress: Al-Halbousi may return to the presidency of Parliament
Yesterday at 4:30 am by Rocky
» Al-Sudani: Iraq has distinguished relations with Iran and America
Yesterday at 4:30 am by Rocky
» Minister of Industry: Iraq is not a rich country and the electricity problem will not be solved even
Yesterday at 4:29 am by Rocky
» A prospective law to employ prisoners and detainees... job and retirement opportunities similar to E
Yesterday at 4:27 am by Rocky
» Sako in Baghdad.. Three possible scenarios for his return after the “withdrawal of the decree” crisi
Yesterday at 4:26 am by Rocky
» Parliamentary Integrity reveals a move with the judiciary to recover TBI Bank’s funds
Yesterday at 4:24 am by Rocky
» Iraq signs 18 memorandums of understanding with Washington
Yesterday at 4:22 am by Rocky
» An Iraqi judicial delegation arrives in Syria to discuss terrorism files and document ISIS crimes
Yesterday at 4:21 am by Rocky
» A plan to exploit new lands...the latest developments in the wheat, barley and rice season in Iraq
Yesterday at 4:19 am by Rocky
» Al-Abadi accuses oil companies of causing 70% of the cancer rate in Basra
Yesterday at 4:17 am by Rocky
» Justice announces the formation of a higher committee to resolve the state’s real estate file
Yesterday at 4:16 am by Rocky
» Deputy: Iraq seeks to sign the “Water Protocol” with Türkiye
Yesterday at 4:15 am by Rocky
» Al-Sudani stresses the importance of the American company Lockheed’s commitment to opening military
Yesterday at 4:13 am by Rocky
» The team accompanying Sudanese in Washington: America will hand over to Iraq the antiquities that we
Yesterday at 4:12 am by Rocky
» Al-Sudani sponsors the signing ceremony of memorandums of understanding with American companies
Wed 17 Apr 2024, 3:38 pm by Rocky
» MM&C 4/17/24 Saleh: The budget tables are almost complete and will take into account urgent circu
Wed 17 Apr 2024, 3:36 pm by Rocky
» Saleh: Private banks in Iraq are considering reorganizing themselves with another government structu
Wed 17 Apr 2024, 3:33 pm by Rocky
» Al-Sudani: It is not possible to work in any development sector without reforming the banking sector
Wed 17 Apr 2024, 3:32 pm by Rocky
» Minister of Oil: Kurdistan’s exports will soon resume, and the region must hand over its oil to SOMO
Wed 17 Apr 2024, 3:30 pm by Rocky
» An economic expert identifies ways for Iraq to get out of oil rents... starting with $350 million
Wed 17 Apr 2024, 3:29 pm by Rocky
» Parliamentary Oil: A proposal to establish Iraqi refineries in neighboring countries... and these ar
Wed 17 Apr 2024, 3:28 pm by Rocky
» Al-Ardawi: The Sudanese government seeks to liberalize the Iraqi dinar and stabilize the economy
Wed 17 Apr 2024, 3:27 pm by Rocky
» MM&C 4/17/24 Al-Sudani receives in Washington the Chairman of JPMorgan
Wed 17 Apr 2024, 2:41 pm by Rocky
» MM&C 4/17/24 US Supports Iraq in joining WTO
Wed 17 Apr 2024, 2:36 pm by Rocky
» US Supports Iraq in joining WTO
Wed 17 Apr 2024, 10:17 am by Rocky
» utube 4/14/24 MM&C Iraqi Dinar - Iraq Prime Minister in Washington - Coming to
Wed 17 Apr 2024, 8:58 am by Rocky