Amman, May 2010 – Capital Bank held its Annual Ordinary and Extraordinary General Assembly at the Association of Banks in Jordan’s Head quarter on the 20th of April 2010. The Assembly discussed the bank’s 2009 financial statements and approved the distribution of 13.4% in stock dividends to the shareholders which is equivalent to JD 17.720 million; thus increasing the capital to JD150 million.

His Excellency Mr. Sameeh Darwazeh, Chairman of the bank's Board of Directors, revealed that the net revenue from interest rates and commissions has grown by 9%, amounting to JD 41.5 million, and that the gross income has grown by 7% to reach JD 45.2 million during 2009.

The year 2009 has proven that Capital Bank enjoys a distinctive base of shareholders and clients and this was confirmed through their support at a time when the bank was facing difficult circumstances. This was reflected positively on customer deposits which rose by 28.2% to reach JD 680 million as well as the bank’s assets which rose to JD 1.1 billion at an overall 9% growth rate.

The bank adopted a conservative policy in dealing with non performing loans by taking detected provisions against these debts. Provisions were also taken with regards to the credit ceiling for the National Bank of Iraq, and the total amount of the provisions that were taken for 2009 amounted to JD 19.2 million. The percentage of coverage for these provisions amounts to 100% of this debt and as such no bad debt will be transferred to next year’s credit as part of the measures that were taken in order to ensure the bank’s recovery and growth during 2010.

These allocations have negatively impacted \ net profit which amounted to JD 1.3 million after tax in comparison to JD 15.250 million of net profits in 2008.

The Chairman also referred to the fact that the year 2010 is already witnessing worldwide economic recovery which positively impacted the profits for the first quarter of 2010, which have already amounted to around JD 4 million after tax.

He went on to say that the Court has initially rejected all three lawsuits that were made against the bank on behalf of the Horizon Group, that amount to a total of JD 35 million, which will also positively affect the bank’s achievements for this year.

The bank still maintains a capital adequacy ratio of 21.81% compared to the 12% and 8% minimum requirements set by the Central Bank and the Basel II Committee. This is a result of the strength of the bank's capital and the quality of its assets, as this ratio is one of the best in the Jordanian banking sector.

In its 2010 Report, Capital Intelligence gave Capital Bank a BBB rating, reiterating the bank’s advanced position amongst the highest rated banks in Jordan.

Capital Bank was also able to expand its network of branches in 2009 by opening four new branches in vital locations across the Kingdom. Work is currently underway to open five new branches in Dahiyat Al-Yasmeen, Marj Al-Hamam, Al Gardens Street, Zarqa Al-Jadidah and Al-Hurria Street, in addition to two additional branches that have yet to be assigned a particular location. These new branches will increase Capital Bank’s network of branches to 20 by the end of 2010.
Subsequent to the General Assembly meeting, Capital Bank announced the election of His Excellency Basem Khalil Al Salem as Chairman of the Board, replacing His Excellency Sameeh Taleb Darwazeh who remained as a board member. In addition, His Excellency Mr. Saeed Darwazeh was elected as Vice-Chairman of the Board during the Board Meeting.

About Capital Bank

Capital Bank has been steadily expanding its operations since its inception in 1995, positioning itself today as the third largest bank in the Kingdom in terms of authorized capital, which amounts to JOD 150 million / shares. The bank's capital ratio exceeds the Basel Committee's and the Central Bank of Jordan's requirements and its operational efficiency is considered to be one of the best in the market.

Distinctly characterized by its financial stability, Capital Bank achieved the second highest level of growth in deposits for 2009, which grew by 28% reaching JOD 680 million in comparison to 593 million in 2008. In addition, the bank boasts a high liquidity ratio to the Jordanian Dinar, which amounts to 151% compared to the 70% requirement of the Central Bank of Jordan. The bank also achieved the high asset growth, which exceeded the JOD 1 billion mark at the end of 2009 in comparison to JD984 million in 2008 recording a 9% growth.

Capital Bank's ambitious and highly-qualified human resources and management team have achieved several successes that have yielded exceptional results in several fields, one of which is that it received a BBB credit rating by Capital Intelligence according to its January 2010 report.

This news release has been distributed by Bidaya Corporate Communications on behalf of Capital Bank.
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