Capital Bank released its initial financial results, announcing that net profits for 2020 after tax has increased from JD28.8 million in 2019 to JD30.3 million, an increase of 5%, according to a press release issued today. This increase was achieved despite the bank's allocations, which were made in line with its hedging policy, reaching JD24.5 million in 2020 as opposed to JD7 million in 2019. Capital Bank also announced a 40% increase in net operational profits compared with 2019.

Accordingly, the Bank's Board of Directors recommended the distribution of 12% in dividends, which is the maximum allowed by the Central Bank of Jordan this year. Despite the difficult economic conditions that prevailed in Jordan during 2020 and their effects on all of the country’s economic sectors, Capital Bank registered an increase in its assets, which rose from JD2.2 billion in 2019 to JD2.8 billion in 2020, or 26%. Furthermore, financing sources, client deposits, in particular, grew in 2020 by around JD368.2 million, an increase of 28.2%. The bank’s net credit facilities portfolio grew by JD324 million, an increase of 30%. Revenue from interests increased by 25.8% or JD14.2 million, while property rights rose by 2.4%, rising from JD348 million in 2019 to JD356 million in 2020.

According to Capital Bank, these initial results are subject to the provisions and approval of the Central Bank of Jordan. Capital Bank Chairman Bassem Khalil Al-Salem said that he was happy with the accomplishments of Capital Bank Group in Jordan and Iraq, which includes Capital Bank, the National Bank of Iraq, and Capital Investments. Al-Salem added that these achievements are a testament to the group’s vision and ambitious strategy that seeks to achieve continued growth through a measured methodology of development and expansion in the markets in which it operates. Speaking about the acquisition of Bank Audi’s operations in Jordan and Iraq, Al-Salem said, “This agreement is in line with Capital Bank’s expansion strategies regionally and locally, ultimately strengthening its competitive position. This acquisition is a first in the Iraqi banking sector, and will only serve to support the National Bank of Iraq even further.

The move will also enhance the steadfastness of Capital Bank Group’s financial indicators, allowing it to continue providing innovative and efficient banking services to corporate and individual customers, as well as the continued development of products and solutions supported by the bank’s bold digital transformation policy.” Through the agreement, Capital Bank Group will acquire Audi Bank’s operations in Jordan, including its 14 branches, as well five branches in Iraq, bringing the total number of Capital Bank branches in Jordan to 28 and the number of National Bank of Iraq branches to 18. This acquisition will also increase the financial value for Capital Bank Group’s shareholders to more than JD400 million, raising the value of the group's assets to JD3.6 billion.

Capital Bank CEO Dawod Al Ghoul explained that the bank's financial achievements were the result of a measured expansion policy, one that has been implemented for the past year and that has noticeably contributed to the group’s growth. Throughout the year, the group has progressed in its expansion strategy, working to raise Capital Investments' classification at the Dubai International Financial Center in order to allow it to provide asset management services to its clients in the United Arab Emirates and throughout the Gulf region. Furthermore, Capital Investments is delving into the Iraqi market in cooperation with the National Bank of Iraq as a way of expanding its investment portfolio by establishing a department specialized in wealth management.

This new department, which operates under the umbrella of Capital Bank, will provide integrated services to the bank's senior clients through banking and investment services and financial consultation. Throughout 2020, Capital Bank implemented a comprehensive corporate social responsibility strategy, offering support to national institutions and civil initiatives in their fight to stem the effects of the COVID-19 pandemic. The bank donated JD2.5 million in 2020, as well as launched a package of incentives for its corporate and individual clients to help lessen their financial burdens and as a means of support for the economy as a whole. Capital Bank also contributed to the National Program for Loan Guarantees, an initiative launched by the Central Bank of Jordan that loaned a total of 70 million euros from the European Investment Bank to small and medium companies affected by the pandemic's repercussions.