jordan's commercial banking sector ranking as of june 30, 2013

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With a population of 6.2 million and a per capita GDP of around $4,900, Jordan occupies an area of about 89,000 square kilometers. The Kingdom is classified as an upper middle-income country. The country has limited natural resources (phosphate and potash are its main exported commodities). The Jordanian economy is one of the most open in the region. It is well-integrated regionally through migration and remittances, trade, foreign direct investment, and tourism. To build a thriving private sector, Jordan is a signatory of a number of bilateral and multilateral trade agreements. Moreover, the Jordan Investment Board (JIB), whose aim is to facilitate the registration and licensing procedures for private sector project, was founded in 1995. Underlying the spirit of openness, Jordan moved up the rankings (World Competitiveness Report) by 7 places in 2012 to attain the 64th spot. This improvement is largely captured by the innovation pillar (up 20 ranks), business sophistication (13 ranks) and by the goods market efficiency pillar (10 ranks) and its sub-unit (tax rate as a proportion of profits) which moved up the rankings from 39 to 27. However, the challenge to improving national competitiveness remains to be the macroeconomic pillar. To serve the financial needs of the national economy, Jordan boasts a large financial services sector and one of the oldest stock markets in the region. Total assets of the banking sector are equivalent to 180 percent of GDP and this is higher than that in the GCC countries (110 percent). The regulatory capital to risk-weighted assets is equal to 19.5 percent and this is indeed indicative of a sound banking system. Also, it is estimated that the 28 insurance firms which operate in Jordan issued the equivalent of 2.0 to 2.2 percent of GDP in premiums. The Jordanian capital market (established in 1978) lists all Jordanian banks and insurance firms and most of the largest service and manufacturing firms in the country (247) in total, has a market capitalization to GDP ratio equal to about 100 percent and 50 percent of its capitalization is owned by non-Jordanians.

[email protected] Project Finance Officer since June, 2013 Bachelor of Arts (Honours) Business Management in 2012 The University of Greenwich

Jordan Commercial Banking Sector Ranking as of June 30, 2013

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Contents Total Assets as of June 30, 2013 ................................................................................................................... 3

Paid-up Capital as of June 30, 2013 .............................................................................................................. 4

Shareholders’ Equity as of June 30, 2013 ..................................................................................................... 5

Customers’ Deposits as of June 30, 2013 ..................................................................................................... 6

Loans as of June 30, 2013 ............................................................................................................................. 7

Loans/Deposits as of June 30, 2013 .............................................................................................................. 8

Earnings per Share (EPS) as of June 30, 2013 ............................................................................................... 9

Book Value – per Share as of June 30, 2013 ............................................................................................... 10

Assets Growth Rate as of June 30, 2013 ..................................................................................................... 11

Deposits Growth Rate as of June 30, 2013 ................................................................................................. 12

Total Deposits as of June 30, 2013 ............................................................................................................. 13

Net Income as of June 30, 2013 .................................................................................................................. 14

References .................................................................................................................................................. 15


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Total Assets as of June 30, 2013

Ranking Bank's Name Total Assets (JOD)

1 Arab Bank Group 24,174,832,000 2 Housing Bank for Trade and Finance 7,022,831,055 3 Jordan Ahli Bank 2,599,493,621 4 Jordan Kuwait Bank 2,403,188,181 5 Cairo Amman Bank 2,189,663,255 6 Bank of Jordan 1,994,714,509 7 Bank al Etihad 1,822,972,995 8 Capital Bank 1,683,667,045 9 Arab Jordan Investment Bank 1,170,064,799

10 Arab Banking Corporation 880,008,525 11 Invest Bank 739,096,265 Total 46,680,532,250

52%

15%

5%

5%

5%

4% 4%

4% 2% 2% 2%

Market Share by Total Assets

Arab Bank Group

Housing Bank for Trade and Finance

Jordan Ahli Bank

Jordan Kuwait Bank

Cairo Amman Bank

Bank of Jordan

Bank al Etihad

Capital Bank

Arab Jordan Investment Bank

Arab Banking Corporation

Invest Bank


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Paid-up Capital as of June 30, 2013 Ranking Bank's Name Paid up Capital (JOD)

1 Arab Bank Group 534,000,000 2 Housing Bank for Trade and Finance 252,000,000 3 Jordan Ahli Bank 165,000,000 4 Capital Bank 165,000,000 5 Bank of Jordan 155,100,000 6 Bank al Etihad 110,000,000 7 Jordan Kuwait Bank 100,000,000 7 Cairo Amman Bank 100,000,000 7 Arab Jordan Investment Bank 100,000,000 7 Arab Banking Corporation 100,000,000 7 Investbank 100,000,000 Total 1,881,100,000

29%

14%

9% 9%

8%

6%

5%

5%

5% 5% 5%

Market Share by Paid-up Capital

Arab Bank Group Housing Bank for Trade and Finance

Jordan Ahli Bank Capital Bank

Bank of Jordan Bank al Etihad

Jordan Kuwait Bank Cairo Amman Bank

Arab Jordan Investment Bank Arab Banking Corporation

Investbank


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Shareholders’ Equity as of June 30, 2013 Ranking Bank's Name Shareholders' Equity (JOD)

1 Arab Bank Group 3,883,910,000 2 Housing Bank for Trade and Finance 984,255,223 3 Jordan Kuwait Bank 388,172,102 4 Bank of Jordan 283,530,808 5 Jordan Ahli Bank 280,210,316 6 Capital Bank 262,667,896 7 Cairo Amman Bank 240,356,390 8 Bank al Etihad 239,093,562 9 Arab Jordan Investment Bank Investbank 150,077,864

10 Invest Bank 134,518,473 11 Arab Banking Corporation 128,018,874 Total 6,974,811,508

56%

14%

6%

4%

4%

4% 3%

3% 2% 2% 2%

Market Share by Shareholders' Equity

Arab Bank Group


Jordan Kuwait Bank

Bank of Jordan

Jordan Ahli Bank

Capital Bank

Cairo Amman Bank

Bank al Etihad

Arab Jordan Investment Bank Investbank

Invest Bank


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Customers’ Deposits as of June 30, 2013 Ranking Bank's Name Customers' Deposits (JOD)

1 Arab Bank Group 15,057,734,000 2 Housing Bank for Trade and Finance 4,860,417,178 3 Jordan Ahli Bank 1,820,052,155 4 Bank of Jordan 1,549,111,073 5 Jordan Kuwait Bank 1,485,413,270 6 Cairo Amman Bank 1,436,403,894 7 Bank al Etihad 1,045,260,157 8 Capital Bank 1,035,051,791 9 Arab Jordan Investment Bank 579,339,644

10 Arab Banking Corporation 540,399,901 11 Invest Bank 490,925,532 Total 29,900,108,595

50%

16%

6%

5%

5% 5%

4% 3% 2% 2% 2%

Market Share by Customers’ Deposits


Jordan Ahli Bank Bank of Jordan

Jordan Kuwait Bank Cairo Amman Bank

Bank al Etihad Capital Bank


Invest Bank


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Loans as of June 30, 2013 Ranking Bank's Name Loans (JOD)

1 Arab Bank Group 10,363,730,000 2 Housing Bank for Trade and Finance 2,582,238,673 3 Jordan Ahli Bank 1,311,055,303 4 Jordan Kuwait Bank 1,284,648,962 5 Cairo Amman Bank 1,001,686,580 6 Bank of Jordan 907,604,701 7 Bank al Etihad 906,200,040 8 Capital Bank 633,805,470 9 Arab Banking Corporation 486,406,907

10 Invest Bank 420,920,031 11 Arab Jordan Investment Bank 383,291,671 Total 20,281,588,338

51%

13%

6%

6%

5%

5% 5%

3% 2% 2% 2%

Market Share by Loans

Arab Bank Group


Jordan Ahli Bank

Jordan Kuwait Bank

Cairo Amman Bank

Bank of Jordan

Bank al Etihad

Capital Bank


Invest Bank

Arab Jordan Investment Bank


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Loans/Deposits as of June 30, 2013 Ranking Bank's Name Loans / Deposits

1 Arab Banking Corporation 90.01% 2 Bank al Etihad 86.70% 3 Jordan Kuwait Bank 86.48% 4 Invest Bank 85.74% 5 Jordan Ahli Bank 72.03% 6 Cairo Amman Bank 69.74% 7 Arab Bank Group 68.83% 8 Arab Jordan Investment Bank 66.16% 9 Capital Bank 61.23% 10 Bank of Jordan 58.59% 11 Housing Bank for Trade and Finance 53.13%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Loans/Deposits


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Earnings per Share (EPS) as of June 30, 2013 Ranking Bank's Name EPS (JOD)

1 Arab Banking Corporation 0.06 2 Jordan Ahli Bank 0.07 3 Invest Bank 0.07 4 Arab Jordan Investment Bank 0.08 5 Bank al Etihad 0.10 5 Capital Bank 0.10 6 Bank of Jordan 0.13 7 Cairo Amman Bank 0.17 8 Housing Bank for Trade and Finance 0.19 9 Jordan Kuwait Bank 0.27 10 Arab Bank Group 0.39

0.06 0.07 0.07 0.08 0.1 0.1

0.13

0.17 0.19

0.27

0.39

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Earnings per Share (EPS)

Earnings per Share (EPS)


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Book Value – per Share as of June 30, 2013 Ranking Bank's Name Book Value - per Share (JOD)

1 Arab Bank Group 7.27 2 Housing Bank for Trade and Finance 3.91 3 Jordan Kuwait Bank 3.88 4 Cairo Amman Bank 2.40 5 Bank al Etihad 2.17 6 Bank of Jordan 1.83 7 Jordan Ahli Bank 1.70 8 Capital Bank 1.59 9 Arab Jordan Investment Bank 1.50

10 Invest Bank 1.35 11 Arab Banking Corporation 1.28

0

1

2

3

4

5

6

7

8 7.27

3.91 3.88

2.4 2.17

1.83 1.7

1.59 1.5

1.35 1.28

Book Value - per Share


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Assets Growth Rate as of June 30, 2013 Ranking Bank's Name Assets Growth Rate

1 Arab Jordan Investment Bank 13.3% 2 Cairo Amman Bank 8.2% 3 Arab Banking Corporation 6.4% 4 Capital Bank 4.8% 5 Invest Bank 4.3% 6 Bank al Etihad 4.2% 7 Arab Bank Group 1.1% 8 Jordan Kuwait Bank -0.3% 9 Housing Bank for Trade and Finance -1.0% 10 Bank of Jordan -1.1% 11 Jordan Ahli Bank -1.9%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Assets Growth Rate

Assets Growth Rate


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Deposits Growth Rate as of June 30, 2013 Ranking Bank's Name Deposits Growth Rate

1 Arab Banking Corporation 14.70% 2 Invest Bank 10.00% 3 Cairo Amman Bank 9.01% 4 Capital Bank 8.98% 5 Bank al Etihad 5.53% 6 Arab Jordan Investment Bank 4.76% 7 Jordan Kuwait Bank 4.21% 8 Housing Bank for Trade and Finance 1.10% 9 Arab Bank Group 0.99% 10 Bank of Jordan -0.46% 11 Jordan Ahli Bank -2.36%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Deposits Growth Rate

Deposits Growth Rate


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Total Deposits as of June 30, 2013 Ranking Bank's Name Total Deposits (JOD)

1 Arab Bank Group 17,357,879,000 2 Housing Bank for Trade and Finance 5,627,884,310 3 Jordan Ahli Bank 1,950,063,677 4 Jordan Kuwait Bank 1,860,283,045

5 Cairo Amman Bank 1,634,126,956 6 Bank of Jordan 1,580,300,768 7 Bank al Etihad 1,294,708,852 8 Capital Bank 1,136,294,130 9 Arab Jordan Investment Bank 873,177,690 10 Arab Banking Corporation 660,391,430 11 Invest Bank 516,049,898 Total 34,491,159,756

50%

16%

6%

5%

5%

5%

4% 3% 3% 2% 1%

Market Share by Total Deposits


Jordan Ahli Bank Jordan Kuwait Bank

Cairo Amman Bank Bank of Jordan

Bank al Etihad Capital Bank


Invest Bank


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Net Income as of June 30, 2013 Ranking Bank's Name Net Income (JOD)

1 Arab Bank Group 208,275,000 2 Housing Bank for Trade and Finance 52,495,870 3 Jordan Kuwait Bank 26,644,892 4 Capital Bank 18,070,969 5 Cairo Amman Bank 17,436,405 6 Bank of Jordan 16,765,579 7 Jordan Ahli Bank 11,026,657 8 Bank al Etihad 10,149,304 9 Arab Jordan Investment Bank 8,557,633 10 Invest Bank 7,333,755 11 Arab Banking Corporation 6,155,952 Total 382,912,016

54%

14%

7%

5%

4%

4% 3%

3% 2% 2% 2%

Market Share by Net Income


Jordan Kuwait Bank Capital Bank

Cairo Amman Bank Bank of Jordan

Jordan Ahli Bank Bank al Etihad

Arab Jordan Investment Bank Invest Bank



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References http://www.arabbank.com.jo/

http://www.arabbanking.com/world/Jordan/En/Pages/default.aspx

http://www.ajib.com/en

http://www.bankaletihad.com/

http://www.bankofjordan.com/boj50/index.htm

http://www.cab.jo/

http://www.capitalbank.jo/

http://www.hbtf.com/wps/portal

http://www.investbank.jo/

http://www.ahli.com/

http://www.jkb.com/

http://www.arabbank.com.jo/

http://www.arabbanking.com/world/Jordan/En/Pages/default.aspx

http://www.ajib.com/en

http://www.bankaletihad.com/

http://www.bankofjordan.com/boj50/index.htm

http://www.cab.jo/

http://www.capitalbank.jo/

http://www.hbtf.com/wps/portal

http://www.investbank.jo/

http://www.ahli.com/

http://www.jkb.com/

jordan's commercial banking sector ranking as of june 30, 2013

Economy & Finance