Over the last 45 years, Jordan Islamic Bank (JIB) has steadily grown its banking, financing and investment businesses in accordance with Islamic guidelines. The corporate governance code it built became the standard in Jordan and one that the central bank has taken to using as a benchmark for peers.
Under chief executive Hussein Saeed, the bank is today third among Jordanian banks in terms of deposits, financings and investments and fourth in overall assets.
The bank’s return on equity is an industry leading 11.9% and its capital adequacy ratio a solid 21.2%. In 2022, shareholders’ equity increased 2.2% year on year to more than $734 million. JIB’s coverage ratio for non-performing financing reached 100% in the last year.
But it is JIB’s digital ambitions that particularly impress. In 2022, JIB launched additional mobile onboarding and application services that put it ahead of its competitors. These include new debit and credit card-related apps, access to credit bureau data and security protocols.
For corporate customers, the bank launched new internet banking services, including social security payment options, direct debit functions, faster transfers and enhancements in partnership with eFawateercom’s e-payment services.
JIB is also a dominant connector to the CliQ payment platform and offers ATM and other transactions using authentication technology from Finger Vein, a leading biometric company. Along with steadily increasing the number of ATMs and services they provide, JIB is a local leader in contactless transactions.
In 2022, the bank opened a new branch structure called Islami Digital, which offers guidance on how to open electronic accounts, transfer funds and use the Islami messenger chat service. The bank sees it as a financial literacy training tool for less tech-savvy customers.
Key priorities include digital transformation, introducing new electronic banking services, improving services through electronic channels and harnessing them to increase awareness of Islamic finance. As part of this drive, the bank is planning to expand the ATM network – the bank has 317 so far.
At the end of 2022, financing and investments increased by roughly 9.6% year on year to $7.3 billion
In 2022, net profit increased to $86.2 million from $83.4 million in 2021 and $73.5 million in 2020.
At the end of 2022, financing and investments increased by roughly 9.6% year on year to $7.3 billion. Over the same period clients’ deposits and accounts increased by roughly 4.7%. JIB’s capital base grew by 2.2% in 2022 and shareholders’ equity grew by a similar amount.
Looking ahead, JIB is planning to promote Islamic financing options for purchases of cars, furniture, commodities, building materials, houses, education tuition, medical treatment, tourism and even direct investment in shares and real-estate leasing.
