the financing structure of jordanian banks in 2013
TRANSCRIPT
How Jordanian Banks Finance Their Assets?
Page 1 of 17
The Financing Structure of Jordanian Banks in 2013 How Jordanian Banks Finance their Assets?
111///888///222000111555
TTTaaarrriiiqqq AAAlll---BBBaaassshhhaaa
BBBAAA (((HHHooonnnsss))) BBBuuusssiiinnneeessssss MMMaaannnaaagggeeemmmeeennnttt fffrrrooommm ttthhheee UUUnnniiivvveeerrrsssiiitttyyy ooofff GGGrrreeeeeennnwwwiiiccchhh,,, LLLooonnndddooonnn ––– UUUKKK iiinnn JJJuuulllyyy 222000111222
How Jordanian Banks Finance Their Assets?
Page 2 of 17
Contents Executive Summary ........................................................................................................................................................................................................ 4
Consolidated Jordanian Banking Sector ......................................................................................................................................................................... 5
Arab Bank Group ............................................................................................................................................................................................................ 6
Arab Jordan Investment Bank ........................................................................................................................................................................................ 7
Bank al Etihad................................................................................................................................................................................................................. 8
Bank of Jordan ............................................................................................................................................................................................................... 9
Cairo Amman Bank....................................................................................................................................................................................................... 10
Capital Bank of Jordan ................................................................................................................................................................................................. 11
InvestBank .................................................................................................................................................................................................................... 12
Jordan Kuwait Bank ...................................................................................................................................................................................................... 13
The Housing Bank for Trade & Finance ........................................................................................................................................................................ 14
Banks’ Year of Establishment ....................................................................................................................................................................................... 15
References ................................................................................................................................................................................................................... 16
About the Author ......................................................................................................................................................................................................... 17
How Jordanian Banks Finance Their Assets?
Page 3 of 17
﴾ َقاُلوا ُسْبَحاَنَك ََل ِعْلَم َلَنا ِإَلا َما َعلاْمَتَنا ِإناَك َأْنَت اْلَعِليُم اْلَحِكيمُ ﴿ صدق هللا العظيم
23آية –سورة البقرة
How Jordanian Banks Finance Their Assets?
Page 4 of 17
Executive Summary The Arab Bank Group financing structure as reported in its balance sheet in 2013
was (84/16) of debt and equity.
The Arab Jordan Investment Bank financing structure as reported in its balance
sheet in 2013 was (87/13) of debt and equity.
Bank al Etihad financing structure as reported in its balance sheet in 2013 was
(87/13) of debt and equity.
Bank of Jordan financing structure as reported in its balance sheet in 2013 was
(85/15) of debt and equity.
Cairo Amman Bank financing structure as reported in its balance sheet in 2013 was
(82/18) of debt and equity.
Capital Bank of Jordan financing structure as reported in its balance sheet in 2013
was (83/17) of debt and equity.
InvestBank financing structure as reported in its balance sheet in 2013 was (82/18)
of debt and equity.
Jordan Kuwait Bank financing structure as reported in its balance sheet in 2013 was
(84/16) of debt and equity.
The Housing Bank for Trade & Finance financing structure as reported in its balance
sheet in 2013 was (85/15) of debt and equity.
This report excludes the following banks as their 2013 annual reports could not be obtained:
o Arab Banking Corporation (Jordan)
o Jordan Ahli Bank
o Jordan Commercial Bank
o Société Générale de Banque – Jordanie
Figure 1: Map of Jordan
How Jordanian Banks Finance Their Assets?
Page 5 of 17
Consolidated Jordanian Banking Sector
The Central Bank of Jordan (CBJ) classifies the banks into two major categories, namely
national banks and branches of foreign banks. Each of these categories is further divided into
commercial banks and Islamic Banks. Moreover, there are 13 (thirteen) national commercial
banks, 3 (three) national Islamic banks, 8 (eight) branches of foreign commercial banks and 1
(one) branch of foreign Islamic bank as shown in the figure below.
Consolidated Banking Sector
National Banks
Commercial Banks
Arab Bank Arab Banking Corporation
(Jordan)
Arab Jordan Investment Bank
Bank al Etihad
Bank of Jordan Cairo Amman
Bank
Capital Bank of Jordan
Housing Bank for Trade & Finance
InvestBank Jordan Ahli Bank
Jordan Commercial Bank
Jordan Kuwait Bank
Société Générale de Banque –
Jordanie
Islamic Banks
Islamic International
Arab Bank
Jordan Islamic Bank
Jordan Dubai Islamic Bank
Branches of Foreign Banks
Commercial Branches
Banque Audi BLOM Bank
Citi Bank Egyptian Arab
Land Bank
National Bank of Abu Dhabi
National Bank of Kuwait
Rafidain Bank Standard Chartered
Islamic Banks
Al Rajhi Bank
How Jordanian Banks Finance Their Assets?
Page 6 of 17
Arab Bank Group
JOD
2013 2012
Total Assets 24,538,372,000.00 23,912,416,000.00
Total Liabilities 20,582,958,000.00 20,036,905,000.00
Total Shareholders' Equity 3,955,414,000.00 3,875,511,000.00
24,538,372,000.00 23,912,416,000.00
84%
16%
The Financing Structure of the Arab Bank Group in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 7 of 17
Arab Jordan Investment Bank
JOD
2013 2012
Total Assets 1,198,714,238.00 1,032,905,639.00
Total Liabilities 1,039,199,456.00 877,788,188.00
Total Shareholders' Equity 159,514,782.00 155,117,451.00
1,198,714,238.00 1,032,905,639.00
87%
13%
The Financing Structure of Arab Jordan Investment Bank in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 8 of 17
Bank al Etihad
JOD
2013 2012
Total Assets 1,927,906,298.00 1,750,116,224.00
Total Liabilities 1,675,768,249.00 1,515,073,729.00
Total Shareholders' Equity 252,138,049.00 235,042,495.00
1,927,906,298.00 1,750,116,224.00
87%
13%
The Financing Structure of Bank al Etihad in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 9 of 17
Bank of Jordan
JOD
2013 2012
Total Assets 2,076,936,998.00 2,016,627,925.00
Total Liabilities 1,755,445,412.00 1,725,851,142.00
Total Shareholders' Equity 321,491,586.00 290,776,783.00
2,076,936,998.00 2,016,627,925.00
85%
15%
The Financing Structure of the Bank of Jordan in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 10 of 17
Cairo Amman Bank
JOD
2013 2012
Total Assets 2,212,969,220.00 2,024,335,814.00
Total Liabilities 1,948,791,573.00 1,783,099,057.00
Total Shareholders' Equity 264,177,647.00 241,236,757.00
2,212,969,220.00 2,024,335,814.00
88%
12%
The Financing Structure of Cairo Amman Bank in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 11 of 17
Capital Bank of Jordan
JOD
2013 2012
Total Assets 1,886,577,482.00 1,606,916,984.00
Total Liabilities 1,562,286,124.00 1,364,109,028.00
Total Shareholders' Equity 324,291,358.00 242,807,956.00
1,886,577,482.00 1,606,916,984.00
83%
17%
The Financing Structure of Capital Bank of Jordan in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 12 of 17
InvestBank
JOD
2013 2012
Total Assets 778,923,054.00 708,514,095.00
Total Liabilities 639,394,904.00 573,281,078.00
Total Shareholders' Equity 139,528,150.00 135,233,017.00
778,923,054.00 708,514,095.00
82%
18%
The Financing Structure of InvestBank in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 13 of 17
Jordan Kuwait Bank
JOD
2013 2012
Total Assets 2,552,465,748.00 2,409,637,456.00
Total Liabilities 2,143,131,385.00 2,030,508,863.00
Total Shareholders' Equity 409,334,363.00 379,128,593.00
2,552,465,748.00 2,409,637,456.00
84%
16%
The Financing Structure of Jordan Kuwait Bank in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 14 of 17
The Housing Bank for Trade & Finance
JOD
2013 2012
Total Assets 7,227,090,355.00 7,091,627,609.00
Total Liabilities 6,169,994,828.00 6,044,962,647.00
Total Shareholders' Equity 1,057,095,527.00 1,046,664,962.00
7,227,090,355.00 7,091,627,609.00
85%
15%
The Financing Structure of the Housing Bank for Trade & Finance in 2013
Debt
Equity
How Jordanian Banks Finance Their Assets?
Page 15 of 17
Banks’ Year of Establishment
Number Bank Reuters Code Year of Establishment
1 Arab Bank Group ARBK 1930
2 Arab Banking Corporation (Jordan) ABCO 1990
3 Arab Jordan Investment Bank AJIB 1978
4 Bank al Etihad USBI 1978
5 Bank of Jordan BOJX 1960
6 Cairo Amman Bank CABK 1960
7 Capital Bank of Jordan EXFB 1995
8 Invest Bank INVB 1982
9 Jordan Ahli Bank AHLI 1955
10 Jordan Commercial Bank JCBK 1977
11 Jordan Kuwait Bank JOKB 1976
12 Société Générale de Banque – Jordanie SGBJ 1965
13 The Housing Bank for Trade & Finance THBK 1973
How Jordanian Banks Finance Their Assets?
Page 16 of 17
References [Arab Bank Plc] http://www.arabbank.com.jo/
[Arab Banking Corporation (Jordan)] http://www.arabbanking.com.jo/
[Arab Jordan Investment Bank] http://www.ajib.com/en
[Bank al Etihad] http://www.bankaletihad.com/
[Bank of Jordan] http://www.bankofjordan.com/boj50/index.htm
[Cairo Amman Bank] http://www.cab.jo/
[Capital Bank of Jordan] http://www.capitalbank.jo/
[Central Bank of Jordan] http://www.cbj.gov.jo/
[Companies Control Department] http://www.ccd.gov.jo/english/index.php
[Invest Bank] http://www.investbank.jo/
[Jordan Ahli Bank] http://www.ahli.com/
[Jordan Commercial Bank] http://www.jcbank.com.jo/en
[Jordan Kuwait Bank] http://www.jkb.com/
[Securities Depository Center] http://sdc.com.jo/english/index.php
[Société Générale de Banque – Jordanie] http://www.sgbj.com.jo/sgbj/en/Home
[The Housing Bank for Trade & Finance] http://www.hbtf.com/wps/portal
How Jordanian Banks Finance Their Assets?
Page 17 of 17
About the Author
Awarded First Class Honours in Bachelor of
Arts (Honours) Business Management from
the University of Greenwich, London – UK.
Working as a Project Finance Officer for an
Iraqi-owned Group.
Previous works related to the Jordanian
Banking Sector:
1. Jordan's Commercial Banking Sector
Ranking as of June 30, 2013.
2. Are Jordanian Banks Jordanian?
3. The External Auditors' Market Share in the Jordanian Banking Sector in 2012.
4. Retail Branches per Jordanians: Retail Banking Statistics in Jordan
5. Jordan’sCommercial Banking Sector Ranking as of December 31, 2013
6. The Market Share of Direct Credit Facilities of Jordanian National Commercial Banks
in 2012 & 2013
7. Local Commercial Banking Sector Ranking as of June 30, 2014
Key Skills:
1. Analysis & Reporting
2. Budgeting & Forecasting
3. Financial Analysis, Modeling & Studies
4. Feasibility & Research Studies
Contact Details:
00962 7 9767 7418