Bassem Khalil Salem, the chairman of the board of Capital Bank, announced that the Capital Bank Group has achieved positive operational financial results in 2016, with profits before tax and before contingency allowances for investment risks in Iraq reaching JD40 million, compared with JD23 million in 2015. The group's net profit after tax totaled JD16 million in 2016, compared with JD1 million in 2015.
Salem indicated that the group has continued to achieve growth in its main banking activities. The net revenue from interest and commissions grew by 12%, reaching JD81.8 million, compared with JD72.9 million in the year before. As for total income, that increased by 24.6%, reaching JD94.2 million, compared with JD75.5 million in 2015. The net credit facilities rose by around JD60 million to JD970 million, an increase of 6.6%. Meanwhile, the customer deposit base reached around JD1,225 million.
In view of the prevailing economic circumstances in Iraq in general, and in compliance with the bank's hedging policy, which is aimed at strengthening the group's financial position, Capital Bank's management deemed it necessary to continue its hedging policy to tackle risks by allocating additional allowances in 2016 to the tune of JD13 million. Total allowances made in 2015 and 2016 amounted to JD25 million, with Salem affirming that they can be retrieved in the event that circumstances improve in the future.
Salem also indicated that the National Bank of Iraq achieved respectable financial results in the past years, the latest of which was the attainment of approximately JD10 million in profits after tax in 2016. The results could have been better had the bank not lost the opportunity to invest its balance with the Iraqi Central Bank in Kurdistan, which stood at JD119 million at the end of 2016. This balance has decreased by JD15 million, or 11%, compared with the balance at the end of 2015. It is worth noting that the bank's management continues to communicate with the Iraqi Central Bank and the Kurdistan regional government, both of which stressed the bank's claim to the balance, with compensation for the missed profits guaranteed.
In 2015, Capital Bank increased its capital to JD200 million and it is currently ranked fourth in terms of registered capital among the Jordanian banks. The bank's closing financial statements are reviewed by an external auditor and are subject to approval by the Central Bank of Jordan.