Capital Bank achieved outstanding growth by the end of 2022, with net profits reaching JOD91 Million and its total assets reaching JOD7 Billion for the first time

Al-Salem: The results reflect the success of the bank's strategy to expand locally and regionally, and the board recommends distributing 17% of the capital

Capital Bank announced its strong financial performance by the end of the previous year, achieving total net profits of JOD91 million, compared with a net profit of JOD61 million at the end of 2021, with growth reaching 49%. The bank's growth in net income from ongoing operations after excluding all non-recurring operations, including the acquisition of Société Générale Bank- Jordan (SGBJ), was 55%. Based on this, the bank's board of directors has recommended to the General Assembly to distribute dividends at a rate of 17% of the capital.

Capital Bank achieved strong growth in all performance indicators at the end of 2022. Capital Bank Group's net assets increased by 61% at the end of 2022, reaching approximately JOD 7 billion, compared to JOD 4.3 billion at the end of 2021. This growth was enabled by the completion of the acquisition of (SGBJ), which represents JOD 1.6 billion of the group's net assets. The net facilities granted to customers also increased at the end of the year, reaching JOD 3.3 billion, compared to JOD 2.1 billion at the end of 2021, an increase of 54%.

Customers' deposits also increased significantly by 75.4%, reaching JOD4.9 billion in 2022 compared to JOD2.8 billion in 2021, while total equity in 2022 increased by 67% compared to the end of 2021, reaching JOD654 million, noting that these results are subject to final approval by the Central Bank of Jordan.

Commenting on these results, Capital Bank Group Chairman, Bassem Khalil Al-Salem, said: "2022 was a continuation of the Group’s achievements, which strengthened our banking and financial position locally and regionally, as we worked to support our capital base and increase our total assets." He pointed out that one of the main achievements in the past year was the introduction of the group's financial and banking services into the Saudi market, which is considered today one of the strongest economies in the world, noting that this step will contribute to increasing the volume of trade between Saudi Arabia, Iraq, and Jordan, leading to an increase in the pace of commercial activity between these countries.

The group, according to Al-Salem, worked to raise its capital by entering the Saudi Public Investments Fund (PIF), one of the largest funds in the world, as a strategic investor with a 23.97% share, equivalent to JOD131.2 million, and the appointment of two new members to represent it in the board of directors, in addition to issuing perpetual bonds worth 100 million dollars and listing them on Nasdaq Dubai, which strengthened the group's capital base.

Additionally, Capital Bank’s Group CEO, Dawod Al-Ghoul, stated that the financial results achieved at the end of 2022 were due to the group's success in implementing its ambitious expansion and growth plans. The group's net operating income increased by 42% compared to the same period in 2021, equivalent to around JOD30.4 million, positively impacting the return on equity, which reached 16.4%, from the bank's regular operations.

Al-Ghoul further stressed that last year, Capital Bank Group completed the process of merging the banking operations of (SGBJ) and the transfer of SGBJ Leasing Company to Capital Bank under the name Capital Leasing, as well as merging SGBJ Financial Brokerage Company into Capital Investments, the investment arm of Capital Bank Group.

The financial results for the National Bank of Iraq showed a growth in net operating income by 31% compared to 2021, while its total assets increased by 34% to reach approximately JOD1.2 billion. The National Bank of Iraq also received its first credit rating from Moody's Investors Services, with the agency announcing a long-term and short-term deposit rating for the bank in the local currency for the first time at B3.

As for Capital Investments, its net profits at the end of 2022 reached around JOD5 million, with a growth rate of 32% compared to the previous year. This was supported by an increase in the size of assets under management, which reached USD608 million with a 42% growth rate, and an increase in the number of brokerage and currency trading accounts by 1700 new accounts. The company's share from the size of transactions on the Amman Stock Exchange also increased to exceed 7% of the trading volume.

Capital Bank Group will continue to implement its strategic plans during 2023, developing the level of services, products, and operations to align with the latest global banking methods and increase its market share in the markets it operates in. It will also continue to enhance its leadership in digital transformation and innovation across all levels of the group through the introduction of the latest electronic and digital applications and solutions, within the best banking practices that serve both individual and corporate clients, including the expansion of Blink’s operations and services, the digital bank which the group launched in early 2022.

It should be noted that these results are preliminary and subject to final approval by the Central Bank of Jordan.