Best bank: Arab Bank
Arab Bank, under the leadership of chief executive Randa Sadik, had another good year in Jordan despite acute geopolitical risks, surging inflation and unprecedented increases in interest rates.
The bank saw a 41% increase in profit before tax, to $1.2 billion, compared with the previous year’s $851 million. This was driven largely by growth in net interest income, a reflection of the rate environment. Total assets stand at $68 billion.
One of the most important developments in the review period was the bank’s move to expand into neighbouring Iraq. In April 2023, it obtained regulatory approval to establish a subsidiary in the country and planned to launch it by mid 2024.
Arab Bank has also expanded its private-banking business through Arab Bank Switzerland’s acquisition of a majority stake in Swiss private bank Gonet. This adds depth of experience to the private-banking offering. The acquisition is part of a strategy to expand its wealth-management offering across Europe and the Middle East and North Africa region.
The bank also focused on its small and medium-sized enterprise business last year, launching a host of integrated banking solutions designed to meet the needs of SMEs. One of these is ‘Arabi Next’, a first-of-its-kind app in Jordan designed specifically for SMEs to conduct transactions 24 hours a day.
The bank has also worked on its environmental impact. At the end of 2023, Arab Bank managed to source around 90% of its total electricity consumption in Jordan from renewable energy sources.
Best digital bank: Capital Bank
Capital Bank has seen impressive growth in and improvements to its mobile app. The registration rate for the app was up 120% year on year; it is now being used by 79% of its customer base.
This growth has been helped by 26 new features, including being able to download account statements directly, print them at kiosks, or order offline at ATMs. Additionally, bulk bill payments and a simplified bill-payment process with single-click solutions were introduced.
Best bank for SMEs: Jordan Kuwait Bank
Jordan Kuwait Bank has experienced strong growth in its small and medium-sized enterprise banking business, with its net credit direct portfolio growing from JD70 million ($99 million) to JD115 million by the end of the year.
The bank has focused on sectors crucial to the national economy, with particular emphasis on industrial, services and construction. It has expanded accessibility to clients outside Amann by opening three regional SME business centres.
It has introduced the ‘Corp+’ platform for transaction banking and has enhanced digital self-service capabilities.
It has also introduced a specialized digital platform specifically for SMEs that offers advisory services to support growth. The platform has reduced processing times for SME-related transactions from 10 to between two and four working days.
Best bank for ESG: Jordan Kuwait Bank
Jordan Kuwait Bank has been active in financing green projects and minimizing its operational impact on the environment.
Its green lending portfolio reached JD73 million ($103 million) over the review period and it issued the first green bond in Jordan, raising $50 million to fund a wastewater treatment project. The deal was important in one of the world’s driest countries.
The bank has also taken steps to reduce its own environmental footprint. It has installed LED lighting systems in its headquarters, cutting energy consumption by 80% and implemented comprehensive waste-management initiatives.
Best bank for corporate responsibility: Bank al Etihad
Bank al Etihad has made an impact through various philanthropic and developmental initiatives this year.
The bank has expanded its philanthropic outreach to approximately 230,912 beneficiaries, compared with 25,730 in 2022. This was largely fuelled by a donation of JD1 million ($1.4 million) to Gaza, helping around 200,000 individuals affected by the current conflict.
The bank’s commitment to financial literacy and inclusion saw the launch of Rise Academy, which provides financial education to 189 young people and 57 professionals through targeted workshops.
The bank has also pioneered Jordan’s first Arabic financial literacy podcast, Mali wa Maluk, broadening its educational outreach.
The bank has also bolstered its commitment to education by awarding 31 scholarships and supporting educational programmes through the Queen Rania Foundation.
Best bank for corporates: Arab Bank
Arab Bank made several improvements to its trade finance portal during the awards period. It digitalized several processes, such as those for creating draft import letters of credit and pre-checking shipping documents. It also enhanced the portal’s front end with features for customized reports and enriched dashboard and notification modules.
The launch of virtual accounts and international bank account numbers brings corporate clients end-to-end account management, accessible via a single sign-on platform.
