Capital Bank) approves financial statements

Capital Bank) approves financial statements

20/7/2016

Hsaduz- The chairman of the Board of Directors of Capital Bank, Bassem Khalil Al - Salem during the annual meeting of the General Authority of the bank that the preliminary results indicate that profits semi - annual 2016 Group Capital Bank is expected to reach 25 million Danarqubl taxes and provisions calculated , compared with 22 million dinars for the same period last year.

And ratified by the General Authority during the meeting on the annual report and financial statements of the bank for 2015, and in the presence of members of the Board of Directors and Director General of the shareholders holding "the originality and the Agency for shares", which accounts for 89% of the capital, and in the presence of an observer delegate in companies.

Salem said during the meeting that the performance of the Capital Group Bank was positive in 2015, particularly in terms of operations. Salem and focused in his speech to the General Authority for Investment Capital Bank in the National Bank of Iraq, and who owns the Capital Bank accounted for 62% of its capital, a Jordanian, who is the only bank in Iraq. And clarified all the details of the balances of the bank deposited with the branches of the Iraqi Central Bank located in the Kurdistan region, which stood at the end of 2015, approximately 134 million Jordanian dinars, where he was the inability of the bank to dispose of them the biggest impact on the Bank deducting allocations and hedge Investment Capital Bank in Iraq and in coordination with the auditors and the Central Bank of Jordan and in accordance with international accounting standards. Salem pointed out most of these allowances are not considered a loss, but can be recovered when the demise of the reasons that led to the monitor.

Salem added that in this regard, and later for many of the meetings and contacts with officials of the Central Bank of Iraq and the Kurdistan Regional Government, has stressed the right of the bank such stocks and the political and economic circumstance that Iraq in general and the region faces is particularly exceptional circumstance led to a liquidity squeeze with the Kurdistan Regional Government, the provincial government has promised to dissolve the subject as soon as possible as well as to compensate the bank for lost profits as a result, especially in light of the improvement in world oil prices and the signing of an international financing agreements, which include the international Monetary Fund and World Bank. Salem said that these efforts have resulted in a reduction of those balances of up to 124 million as at the end of June of this year.

He noted that the National Bank of Iraq, naturally operates through its branches in different governorates of Iraq and is providing all major services, the most important trade finance through the opening of letters of credit which is today at the forefront of Iraqi private banks in terms of credits issued that serve the Iraqi and Jordanian companies to some extent whether. He noted that the National Bank of Iraq has made a profit of about 4.7 million Jordanian dinars during the first half of this year.

He pointed out that, given the world's largest banks to the trust group Capital Bank on the one hand and bank Ahli Iraq on the other hand has been enhanced to work with the international banks through the provision of banking services to major oil companies operating in Iraq through the National Bank of Iraq and the workload of the monthly close to $ 40 million.

He added that the strategy of Capital Bank in the presence in Iraq has had a significant impact profit group where profits from Iraq accounted for about 25% of the net profit of the Group during the past ten years and so evident effect appeared in the last five years where the profit derived from Iraq amounted to about 40 million dinars which accounted for 40% of group profits, which amounted to about 100 million Jordanian dinars.

Turning Salem, Speaking at the bank's shareholders, that despite the truncated allocations worth about $ 21.5 million Jordanian dinars compared to the risks of investing in Iraq, the performance of the Capital Group Bank was positive in 2015, especially in terms of operations, the bank was able to achieve an operating profit of about 79 million dinars, excluding the results of the investment portfolio, in addition to maintaining the non-performing debt ratio by about 5.8%, while liquidity ratios have increased to approximately 154%, which is higher than the percentage required by the Central Bank of Jordan.

He added that the bank retaining a capital adequacy is higher than 18%, which is one of the highest rates in the local market, the Bank is keen on maintaining the advanced rank as one of the leading companies in Jordan in the field of small and medium-sized renewable energy companies banks, because these sectors of major importance in moving the wheel of the local economy. To achieve the objectives of the Bank to focus on this type of financing, it has been providing tools fit these companies and meet the needs of the start of new projects or expansion projects list, which has had a significant impact in contributing to the growth of the size of the facilities granted to this sector by about 45 percent for 2015, one of the highest ratios growth among local banks and we expect the growth of these facilities and at the same pace during 2016