Capital Bank Group has released its financial results for the first nine months of 2019 which showed a 41% increase in the net profit compared to the same period last year, reaching JD22.6 million. The results showed a 12.7% increase in net credit facilities portfolio, as compared to the beginning of the year, exceeding the barrier of JD1 billion. Customer deposits grew by 8.7%, reaching JD1.356 billion, compared to JD1.248 billion in the beginning of the year.
Commenting on the results, Capital Bank’s Chairman Bassem Khalil Al-Salem said: “What is more important than the increase in net profit is the quality of this increase and its sources.” Al-Salem added that the increase was driven by improved results of major operational activities, saying that the net interest income and net commission income increased by 5.6% and 14.4%, respectively, while the total income rose from JD58.3 million to JD66 million, with a 13% increase. Al-Salem noted that these positive results were achieved despite the pressing economic conditions, confirming the success of the Bank’s strategy in achieving growth and sustainable revenues.
Al-Salem added that the improvement was not limited to profits, but included other indicators as well, such as credit quality. He said that the ratio of non-performing loans to total credit facilities fell from 8.6% at the end of last year to 4.85% at the end of September, with non-performing loans being covered by a good amount of provisions and guarantees. Speaking about financial strength indicators, Al-Salem noted that the Bank has good liquidity and a strong capital base which support its expansion plans and provide a high degree of security for its depositors.
Al-Salem added that the National Bank of Iraq (NBI), in which Capital Bank has a 62% share, has achieved positive financial results as shown by a growth in various financial indicators. NBI’s total income jumped from JD9.1 million to JD17.4 million, an increase of 91%. The net profit until the end of Q3 was equivalent to JD7 million.
Al-Salem said that the National Bank of Iraq (NBI) holds a prominent position among Iraqi private banks with its distinguished financial results and the level of banking services it offers to its customers, which focus on various economic sectors in Iraq.
Al-Salem noted that the digital transformation process aimed at automating and digitizing Capital Bank’s operations is under way, adding that the Bank is confident in its plans to provide the best banking services to its customers from all sectors, as well as maintain continuous and balanced growth that enhances the confidence of customers and shareholders, and supports the Group’s credit position.
Al-Salem concluded by thanking Capital Bank customers and shareholders for their confidence in the bank, expressing his appreciation to the Central Bank of Jordan for its continuous support of the banking sector.