Key Performance Indicators for Banks in Jordan December, 2013

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2 Key Performance Indicators for in Jordan December, 2013 Prepared by: Shaher Suleiman MSC (UK), CRP (USA), CRISC (USA) Head of Risk Management and Compliance Jordan Kuwait Bank

3 Conclusions and opinions stated in this study convey the subjective opinion of the analyst and shall not represent in any way recommendation to sell or to buy or to adopt any investment decisions thereof. This study was based on published financial statements; therefore, in light of possible human or technical errors in said statements, the analyst may not guarantee the accuracy or completeness of the information and he shall not be responsible for any mistakes, deletions or conclusions resulting from the use of these statements. Kindly refer to this study when publishing or copying any data or tables therein.

4 Contents Executive Summary 1 Objectives and Assumptions 2 Financial Position 3 Capital Adequacy 5 Assets Quality 5 Earnings 6 Share Performance 7 Tables 8

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6 Executive Summary The difficulties that faced the Jordanian economy during the past years extended into the year These difficulties were a direct result of the global economic conditions and the uncomfortable situation in neighboring countries and the Arab region in general, in addition to problems related to energy supplies and unemployment, which are considered the main domestic economic problems. The Government and the Central Bank of Jordan undertook a number of policies to address economic imbalances, motivate economic growth, reinforce the attractiveness of the Jordanian Dinar (JD), and take measures that would support and strengthen the banking system, and adopt programs that would contribute in solving the unemployment problem. assets grew by USD 3.8 billion to reach USD 74.8 billion; a growth rate of 5.3%. As a result of confidence in the banking system, customer deposits increased by USD 2.9 billion to reach USD 49.4 billion; a growth rate of 6.3%. Interbank deposits decreased by USD 730 million to reach USD 5.7 billion. continued to enhance their shareholders equity, which increased by USD million to reach USD 11 billion, with a growth rate of 4.6%. The public s confidence and banks response reflected on credit facilities, with net credit facilities increasing by USD 1.3 billion, to USD 33.3 billion, with a growth rate of 4.2%. There was a positive direction with regards to banks dealings in the financial securities portfolio, whereby it increased by about USD 1.8 billion to reach USD 17 billion; a growth rate of 12.2%. On the other hand, bank investments in cash and balances with other banks decreased by USD 490 million to reach USD19.3 billion; a decrease rate of 2.5%. All Jordanian banks reached the minimum requirement for the capital adequacy ratio according to the Central Bank of Jordan s instructions of 12%. All banks are considered well-capitalized according to these instructions, with the rate exceeding 14% (with the exception of Jordan Ahli Bank and Jordan Commercial Bank). The average rate reached was 15.89%. Although the Central Bank of Jordan has not yet issued instructions related to Basel III, it can be said that most Jordanian banks can meet the Basel III requirements regarding the capital adequacy ratio. The financial leverage ratio at banks reached 14.67%. All banks exceeded the minimum of 6% required by the Central Bank of Jordan. Contrary to the situation in previous years, and as a direct result of the remedies undertaken by banks for non-performing loans, these debts decreased by USD 251 million to reach USD2.3 billion, despite credit facilities increasing by USD 1.3 billion. As a result, the non-performing loans ratio decreased to 6.58% against 7.57% in The ratio remains within internationally acceptable standards (less than 10%). ability to cover non-performing loans increased, reaching 86.34% compared to 79.52% in The pressure of non-performing loans on equity eased. The ratio declined to 2.89% against 5.02% at the end of net earnings before taxes reached USD 1.4 billion an increase by USD million at a growth rate of 20.7% over achieved an increase in net earnings, with the exception of Jordan Ahli Bank whose net earnings decreased by USD 13.9 million. 1

7 The increasing trend in interest rates during 2013 resulted in the increase in the cost of fund at banks, reaching 2.43% against 2.14% in All banks demonstrated high efficiency in managing their expenses and at varying rates. Return on Average Assets (ROAA) increased to reach 1.97% against 1.7% in Return on Average Equity (ROAE) reached 13.40% against 11.58% at the end of Market capitalization increased to reach USD 12.9 billion against USD 11.7 billion at the end of Key Performance Indicators for banks listed at the Amman Stock Exchange as at 31/12/2013 Study Objectives This analytical study aims at highlighting the key financial indicators for banks listed at the Amman Stock Exchange (ASE), based on their financial statements for the year 2013 using the CAMEL methodology. The CAMEL methodology measures financial indicators using a set of ratios, because comparing banks using absolute numbers only fails to express performance standards. The most prominent ratios have been used in this analytical study. The analysis of the banks financial status on a consolidated basis complies with best international practices in term of comprehensive supervision over banks financial statements. operational results and performance indicators were measured on the basis of net profits before taxes, given the different tax legislations of countries where Jordanian banks are present in addition to the fact that some banks have not yet reached a final settlement with the Income Tax Department. Therefore, using the net profit before tax reflects the extent of the managements effectiveness in realizing these profits. The same principles used in previous studies were applied, whereby banks were divided into four categories according to the size of their assets as follows: Category (A) includes the Arab Bank Category (B) includes the large banks with assets exceeding USD 2.8 billion Category (C) includes medium banks with assets ranging between USD 1.4 billion and USD 2.8 billion Category (D) includes small banks with assets less than USD 1.4 billion The attached tables clarify the detailed financial indicators for banks, and show the rank of each in relation to all other banks on one hand and in relation to its category on the other. Study Assumptions This study relied on the consolidated financial statements, published in banks annual reports. This study did not include banks that are not listed at the Amman Stock Exchange. 2

8 First: Financial Position / Resources and Utilization of Funds - It is noteworthy that the Jordan Ahli Bank s balance sheet for 2013 was affected by the bank s decision to sell its equity in the International Ahli Bank - Lebanon. The Jordanian economy continues to face a number of economic difficulties and imbalances in the economic structure with its different components. This comes as a direct result of the global economic conditions and the uncomfortable situation in the neighboring countries, particularly in Syria, in addition to problems related to the supply of energy and the unemployment level, which are considered to be the Jordanian economy s main obstacles. For the purpose of ameliorating the impact of these challenges, the Ministry of Finance and the Central Bank of Jordan, continued through their financial and monetary policies to adopt a number of policies and procedures that would rectify economic imbalances, in the various economic areas, with the purpose of supporting and enhancing economic activity in the Kingdom, and reinforcing the attractiveness of the Jordanian Dinar, as well as taking measures that would support and strengthen the Jordanian banking system and implement the best international practices in the field of risk management. The government also adopted programs that would contribute in solving the unemployment problem. From the Positive Perspective: - Bank assets increased during 2013 by USD 3.8 billion, reaching USD 74.8 billion, with a growth rate of 5.3% (Table 1). The largest growth was for the Arab Bank, with an increase in assets by USD million to reach USD 34.6 billion, representing 23.5% of the total increase in banks assets. Assets Distribution Accross the s as of Dec Large 37.81% Small 4.48% Medium 11.44% Arab Bank 46.27% - The Arab Bank accounted for 46.3% of total banks assets (47.5% for 2012), occupying the lead position, followed by the Housing Bank, while the last position was occupied by Société Générale Bank. 3

9 The increase in banks assets mentioned above came as a direct result of the growth in these banks main sources of funds, as shown below: Customer deposits increased (Table 2) by USD 2.94 billion, reaching USD billion at a growth rate of 6.3%. These deposits finance about 66% of banks assets, and are approximately the same ratio as in This increase in customer deposits is a clear indication of confidence in the Jordanian economy in general and in the banking system in particular. The Arab Bank recorded the largest growth in customer deposits, increasing by USD 1.1 billion, representing 45.1% of total deposits at all banks within this study. All banks witnessed an increase in customer deposits with the exception of Jordan Ahi Bank and Bank of Jordan, with deposits decreasing by USD 474 million and USD 11.8 million respectively. The interbank market decreased by USD million, reaching USD 5.7 billion (Table 3). resort to this source of funds for their temporary need for liquidity. Hence, it is necessary to search for longerterm sources of funds. The bank that resorted to the interbank market most was Cairo Amman Bank; increasing by USD 162 million, followed by Jordan Commercial Bank at USD 103 million. In general, all banks strive to enhance their owners equity to reinforce their capital adequacy ratio and increase their credit capacity, as well as increase their ability to face any unexpected risk. Owners equity is considered an internal generation, through realizing profit. This increase in banks sources of funds reflected on their investments as follows: Net credit facilities increased by USD 1.3 billion, reaching USD 33.3 billion, with a growth rate of 4.2% (Table 6). This reflects the same trend as in 2012, when credit facilities increased by USD 2.1 billion. This indicates the easing of clients and banks concerns in offering and demanding facilitites. The largest balance of credit facilities was at the Arab Bank, representing 44.7% of banks net facilities. financial assets increased by USD 1.8 billion, to reach USD 17 billion, with a growth rate of 12.2% (Table 7). investments in cash and balances at banks decreased by USD 490 million, to reach USD 19.3 billion; a decline of 2.5% (Table 8). Cash margins increased by USD 98.7 million to reach USD 5.3 billion (Table 4). Cash margins cover about 16.1% of net credit facilities and finance 7.1% of total banks assets. Owners equity increased by USD million to reach USD 11 billion, with a growth rate of 4.6%, financing 14.7% of total banks assets (Table 5). Owners equity increased at all banks. The Arab Bank, Housing Bank, and Jordan Kuwait Bank maintained their lead positions, with the same rankings as in previous years. 4

10 Financial Assets 22.7% Cash & s at banks 25.7% Assets Structure as of Dec Fixed & Intangible Other Assets Assets 1.4% 5.7% Net Credit Facilities 44.5% Second: Capital Adequacy Indicator All the banks within the study recorded capital adequacy ratios exceeding the minimum required by the Central Bank of Jordan of 12% (Table 9). With the exception of Jordan Ahli Bank and the Jordan Commercial Bank, all the banks are considered well-capitalized according to the Central Bank of Jordan s classification, with the capital adequacy ratio exceeding 14%. The average capital adequacy ratio reached 15.89% compared to 15.71% in 2012; indicating that the banks within the study are well capitalized. The highest ratio was achieved by Société Générale Bank at 34.17%, and the lowest was at Jordan Ahli Bank at 12.24%. It must be noted that high capital adequacy ratios represent a burden for the bank, which is considered, in this case, over capitalized, placing pressure on dividend disbursement, particularly if the increase is due to the paid up capital. Hence, a reasonable balance must be achieved between capital adequacy requirements, liquidity, and return on owners equity. Financial leverage ratios at banks reached 14.67% (Table 10), which is almost the same ratio recorded in All banks exceeded the minimum ratio required by the Central Bank of Jordan, set at 6%. The highest financial leverage ratio was achieved by Invest Bank 17.91%, and the lowest was at Jordan Islamic Bank at 7.78%. Third: Assets Quality It is clear that a number of banks dealt well with non-performing loans. This is evident in the decrease of non-performing loans by USD 251 million, to reach USD 2.3 billion (Table 11), while facilities increased by USD 1.3 billion, as mentioned earlier. The largest decrease was at the Arab Bank with USD 134 million, followed by Jordan Kuwait Bank with USD 57.5 million. The largest non-performing loans were recorded at the Arab Bank, amounting to USD 894 million, forming 38.5% of banks total nonperforming loans, and the lowest was at Société Générale Bank with USD 12 million. The average ratio of non-performing loans to total credit facilities (Table 12) reached 6.58% for all banks, a decrease from 7.57% at the end of This ratio remains below the minimum internationally acceptable limit of 10%. 5

11 The ratio of non-performing loans at all banks within the study were within the rates accepted internationally, with the exception of Jordan Ahli Bank at 10.96%, Jordan Commercial Bank at 11.23%, and Invest Bank at 11.56%. The lowest ratio was achieved by Arab Jordan Investment Bank at 2.39%. As for the ability of owners equity to cover non-performing loans, and the pressure these loans present (principal of non-performing loans - Provision for Impairment in Direct Credit Facilities / Owners Equity), reached 2.89% compared to 5.02% at the end of 2012 (Table 14). This indicates that pressure on banks has decreased substantially. The lowest ratio was achieved at Cairo Amman Bank with -.91%, while the highest ratio was for Jordan Commercial Bank at 17.64%. Performing Facilities 93.42% Types of Facilities at as of Dec Non-Performing Facilities 6.58% ability to cover non-performing loans (Provision for Impairment in Direct Credit Facilities / non-performing loans) increased to 86.34% against 79.52% for 2012 (Table 13). additional provisions to cover debts, in addition to the decrease in non-performing loans, contributed to the improvement of the ratio. The highest coverage ratio was achieved at Cairo Amman Bank with %, followed by Arab bank with 97.77%, while the lowest coverage ratio was at Invest Bank with 56.05%. Fourth: Earning Table 15 shows that banks net earnings before taxes increased by USD million to reach about USD 1.4 billion at the end of 2013, with a growth rate of 20.7% compared to 10.2% in The Arab Bank, Housing Bank, and Jordan Kuwait Bank continued to be the lead in net earnings, reaching USD million, USD million, and USD 93.1 million respectively. All banks achieved an increase in net earnings before taxes, with the exception of Jordan Ahli Bank, whose earnings decreased by USD 13.9 million. The most significant earnings indicators achieved by banks during 2013 were as follows: The ratio of banks net interest to gross income increased to 70.26% at the end of 2013, compared to 68.41% in This indicates that banks rely heavily on net interest income rather than non interest income (Table 16). The highest ratio was at the Arab Banking Corporation with 81.94%, and the lowest was at Capital Bank with 52.93%. Profits from financial assets reached USD 43.6 million, with a decrease of USD 0.29 million from 2012 (Table 17). The highest decline was at Jordan Kuwait Bank by USD 7 million, followed by Jordan Islamic Bank with a decline by USD 2.7 million. 6

12 Table 18 shows that the general trend for the weighted average of interest rates during 2013, compared to 2012, shows increase for all types of deposits, with the exception of current deposits. The same applies for the increase in the facilities items with the exception of current overdraft facilities. It is noteworthy that the Jordanian Dinar s is still at competitive edge. The result of the increase in the interest rate structure, the interest rate margin (the difference between the interest rate on loans and advances, and the interest rate on time deposits) decreased at the end of 2013 by 70 base points compared to average cost of funds increased to reach 2.43% in 2013 compared to 2.14% in 2012 (Table 19). The lowest cost of fund was recorded at the Housing Bank at 1.82%, and the highest was at Société Générale at 4.34%. The performance of expenses management was as follows: The ratio of general and administrative expenses to net interest and commissions reached 45.15% at the end of 2013 (Table 20). It is possible to state that all banks are managing their expenses efficiently, staying below the 60% international standard ratio. The lowest and best ratio was recorded at Jordan Kuwait Bank at 34.38%, followed by the Housing Bank at 39.62%.The highest ratio was recorded at Jordan Commercial bank with 60.79%. The general and administrative expenses to total revenues ratio (Table 21) was 26.25% compared to 26.75% in The lowest ratio was recorded at Capital Bank at 19.87%, and the highest ratio was recorded at Jordan Ahli Bank at 38.52%. In conclusion, performance indicators highlighted the following facts and results: Return on Average Assets (ROAA) increased to 1.97% in 2013, compared to 1.7% in 2012 (Table 22). Acceptable international standards are around 1%. The highest return was achieved by Capital Bank at 2.79% followed by Cairo Amman Bank at 2.77% and Jordan Kuwait Bank at 2.66%. Jordan Commercial Bank recorded the lowest return at 0.44%. Return on Average Equity (ROAE) increased to 13.40% at the end of 2013 compared to 11.58% in 2012 (Table 23). According to acceptable international standards, the return should exceed 15%. This indicates that average performance at the banks within the study was lower than international averages. The highest return was at the Jordan Islamic Bank with 26.71%, followed by Cairo Amman Bank with 23.24% and Capital Bank with 17.19%. Jordan Commercial Bank recorded the lowest return with 3.81%. Fifth: Share Performance Table 24 shows the earning per share indicator (EPS) in USD. The Arab Bank assumed the top position with followed by Jordan Kuwait Bank with and the Cairo Amman Bank with The lowest earning per share was at Jordan Commercial Bank with The Price to Earning (P/E) ratio (Table 25) showed the lowest ratio was recorded by Cairo Amman Bank with 6.81 times, followed by Capital Bank with 7.51 times. The highest ratio was for the Jordan Commercial Bank with times. Market capitalization increased to USD 12.9 billion at the end of 2013 compared to USD 11.7 billion in 2012; a growth rate of 10.3% (Table 26). The highest market capitalization was at the Arab Bank with USD 5.9 billion, representing 46% of the banks market value. The lowest value was for Société Générale with USD million. 7

13 Table No List of Tables Table Name Total Assets Customers Deposits Deposits Cash Margins Total Owners Equity Net Credit Facilities Financial Assets Cash & s at Capital Adequacy (CAR) Leverage (Equity / Assets) Non- Performing Loans (Principal) Non- Performing Loans / Gross Loans Coverage (Provision for Impairment in Direct Credit Facilities / Principal of Non-Performing Loans) Non- Performing Loans - Provision for Impairment in Direct Credit Facilities / Equity Pre-Taxes Profits (Losses) Net-Interest / Gross Income Income (loss) from Financial Assets Credit and Deposits Interest Rate Structure ( % ) Funding Costs General and Administrative Expenses / Net Interest and Commissions General and Administrative Expenses / Revenues Return On Average Assets (ROAA) Return On Average Equity (ROAE) Earning Per Share (EPS) Price / Earning (P/E) Market Capitalization Page No

14 Table No. 1 Total Assets (In millions USD) 12/ /2012 Changes (A) Arab Bank Plc 34, , % 12 (B) Housing Bank 10, , % 14 6 Jordan Islamic Bank 4, , % 9 2 Jordan Ahli Bank 3, , % 13 5 Jordan Kuwait Bank 3, , % 10 3 Cairo Amman Bank 3, , % 8 1 Bank of Jordan 2, , % 11 4 Total (B) 28, , % (C) Bank al Etihad 2, , % 6 4 Capital Bank 2, , % 3 2 Arab Jordan Investment Bank 1, , % 4 3 Jordan Commercial Bank 1, , % 2 1 Total (C) 8, , % (D) Arab Banking Corporation (ABC) 1, , % 5 2 Invest Bank 1, % 7 3 Societe Generale % 1 1 Total (D) 3, , % Grand Total 74, , % 9

15 Table No. 2 Customers Deposits (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 22, , % 10 (B) Housing Bank 7, , % 9 3 Jordan Islamic Bank 4, , % 8 2 Jordan Kuwait Bank 2, , % 6 1 Bank of Jordan 2, , % 13 5 Jordan Ahli Bank 2, , % 14 6 Cairo Amman Bank 2, , % 11 4 Total (B) 19, , % (C) Bank al Etihad 1, , % 1 1 Capital Bank 1, , % 5 3 Jordan Commercial Bank 1, % 4 2 Arab Jordan Investment Bank % 12 4 Total (C) 5, , % (D) Arab Banking Corporation (ABC) % 2 1 Invest Bank % 7 3 Societe Generale % 3 2 Total (D) 2, , % Grand Total 49, , % 10

16 Table No. 3 Deposits (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 2, , % 11 (B) Housing Bank , % 12 4 Jordan Kuwait Bank % 10 5 Cairo Amman Bank % 3 1 Jordan Ahli Bank % 13 6 Bank of Jordan % 4 2 Jordan Islamic Bank % 9 3 Total (B) 1, , % (C) Arab Jordan Investment Bank % 8 3 Bank al Etihad % 14 4 Jordan Commercial Bank % 2 1 Capital Bank % 7 2 Total (C) % (D) Arab Banking Corporation (ABC) % 6 3 Invest Bank % 1 1 Societe Generale % 5 2 Total (D) % Grand Total 5, , % 11

17 Table No. 4 Cash Margins (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 3, , % 8 (B) Jordan Ahli Bank % 10 4 Housing Bank % 12 5 Bank of Jordan % 7 2 Cairo Amman Bank % 2 1 Jordan Kuwait Bank % 14 6 Jordan Islamic Bank % 9 3 Total (B) 1, , % (C) Bank al Etihad % 11 4 Capital Bank % 3 1 Jordan Commercial Bank % 6 3 Arab Jordan Investment Bank % 4 2 Total (C) % (D) Societe Generale % 1 1 Invest Bank % 13 3 Arab Banking Corporation (ABC) % 5 2 Total (D) % Grand Total 5, , % 12

18 Table No. 5 Total Owners Equity (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 5, , % 13 (B) Housing Bank 1, , % 14 6 Jordan Kuwait Bank % 6 4 Bank of Jordan % 3 2 Jordan Ahli Bank % 9 5 Cairo Amman Bank % 5 3 Jordan Islamic Bank % 2 1 Total (B) 3, , % (C) Capital Bank % 1 1 Bank al Etihad % 7 3 Arab Jordan Investment Bank % 11 4 Jordan Commercial Bank % 4 2 Total (C) 1, , % (D) Invest Bank % 10 2 Arab Banking Corporation (ABC) % 12 3 Societe Generale % 8 1 Total (D) % Grand Total 10, , % 13

19 Table No. 6 Net Credit Facilities (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 14, , % 7 (B) Housing Bank 3, , % 10 3 Jordan Islamic Bank 3, , % 9 2 Jordan Kuwait Bank 1, , % 13 5 Jordan Ahli Bank 1, , % 14 6 Bank of Jordan 1, , % 4 1 Cairo Amman Bank 1, , % 12 4 Total (B) 13, , % (C) Bank al Etihad 1, , % 2 2 Capital Bank % 5 4 Jordan Commercial Bank % 3 3 Arab Jordan Investment Bank % 11 1 Total (C) 3, , % (D) Arab Banking Corporation (ABC) % 8 3 Invest Bank % 6 2 Societe Generale % 1 1 Total (D) 1, , % Grand Total 33, , % 14

20 Table No. 7 Financial Assets (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 7, , % 12 (B) Housing Bank 3, , % 10 3 Cairo Amman Bank % 6 1 Bank of Jordan % 11 4 Jordan Kuwait Bank % 7 2 Jordan Ahli Bank % 14 6 Jordan Islamic Bank % 13 5 Total (B) 6, , % (C) Capital Bank % 9 4 Arab Jordan Investment Bank % 4 3 Bank al Etihad % 1 1 Jordan Commercial Bank % 3 2 Total (C) 2, , % (D) Societe Generale % 2 1 Arab Banking Corporation (ABC) % 5 2 Invest Bank % 8 3 Total (D) % Grand Total 16, , % 15

21 Table No. 8 Cash&s at (In Millions USD) 12/ /2012 Changes (A) Arab Bank Plc 10, , % 9 (B) Housing Bank 2, , % 10 4 Jordan Islamic Bank 1, , % 3 1 Jordan Kuwait Bank % 6 3 Cairo Amman Bank % 5 2 Jordan Ahli Bank % 13 6 Bank of Jordan % 12 5 Total (B) 6, , % (C) Capital Bank % 1 1 Bank al Etihad % 14 4 Arab Jordan Investment Bank % 4 2 Jordan Commercial Bank % 8 3 Total (C) 1, , % (D) Arab Banking Corporation (ABC) % 2 1 Invest Bank % 7 2 Societe Generale % 11 3 Total (D) % Grand Total 19, , % 16

22 Table No. 9 CAR According to CBJ Requirements 12/ /2012 (A) Arab Bank Plc 14.58% % 11 (B) Housing Bank 18.77% % 4 1 Jordan Kuwait Bank 16.43% % 8 3 Bank of Jordan 16.30% % 7 2 Cairo Amman Bank 15.82% % 10 4 Jordan Ahli Bank 12.24% % 13 5 (B) 16.69% 16.47% (C) Arab Jordan Investment Bank 21.58% % 5 2 Capital Bank 18.71% % 3 1 Bank al Etihad 15.86% % 9 3 Jordan Commercial Bank 12.37% % 12 4 (C) 16.81% 16.20% (D) Societe Generale 34.17% % 1 1 Arab Banking Corporation (ABC) 23.85% % 2 2 Invest Bank 15.33% % 6 3 (D) 21.96% 22.18% Sector 15.89% 15.71% Standard > =12% 17

23 Table No. 10 (A) Leverage (Equity / Assets) 12/ /2012 Arab Bank Plc 16.12% % 3 (B) Jordan Kuwait Bank 16.04% % 5 1 Bank of Jordan 15.48% % 9 3 Housing Bank 14.63% % 8 2 Cairo Amman Bank 11.94% % 12 4 Jordan Ahli Bank 10.52% % 13 5 Jordan Islamic Bank 7.78% % 14 6 (B) 12.92% 12.79% (C) Capital Bank 17.19% % 6 1 Arab Jordan Investment Bank 13.31% % 7 2 Bank al Etihad 13.08% % 10 3 Jordan Commercial Bank 10.81% % 11 4 (C) 14.01% 14.07% (D) Invest Bank 17.91% % 2 2 Societe Generale 17.53% % 1 1 Arab Banking Corporation (ABC) 13.97% % 4 3 (D) 16.22% 18.42% Sector 14.67% 14.77% Standard > =6% 18

24 Table No. 11 (A) Non- Performing Loans (Principal) *(In Millions USD) 12/ /2012 Changes Arab Bank Plc , % 5 (B) Cairo Amman Bank % 11 4 Jordan Kuwait Bank % 2 1 Bank of Jordan % 9 3 Jordan Islamic Bank % 13 6 Jordan Ahli Bank % 12 5 Housing Bank % 8 2 Total (B) 1, , % (C) Arab Jordan Investment Bank % 1 1 Capital Bank % 3 2 Jordan Commercial Bank % 6 3 Bank al Etihad % 7 4 Total (C) % (D) Societe Generale % 4 1 Arab Banking Corporation (ABC) % 10 2 Invest Bank % 14 3 Total (D) % Grand Total 2, , % * Loans = Direct Credit Facilities. 19

25 Table No. 12 (A) Non- Performing Loans / Gross Loans 12/ /2012 Arab Bank Plc 5.68% % 6 (B) Cairo Amman Bank 4.78% % 2 1 Jordan Islamic Bank 4.79% % 3 2 Jordan Kuwait Bank 6.84% % 9 4 Housing Bank 8.61% % 8 3 Bank of Jordan 8.72% % 10 5 Jordan Ahli Bank 10.96% % 12 6 (B) 7.44% 7.86% (C) Arab Jordan Investment Bank 2.39% % 4 1 Bank al Etihad 6.57% % 7 2 Capital Bank 6.73% % 11 3 Jordan Commercial Bank 11.23% % 14 4 (C) 6.98% 9.74% (D) Societe Generale 3.79% % 5 2 Arab Banking Corporation (ABC) 4.21% % 1 1 Invest Bank 11.56% % 13 3 (D) 6.97% 7.17% Sector 6.58% 7.57% Standard < 10% 20

26 Table No. 13 Coverage (Provision for Impairment in Direct Credit Facilities / Principal of Non-Performing Loans) 12/ /2012 (A) Arab Bank Plc 97.77% % 1 (B) Cairo Amman Bank % % 2 1 Bank of Jordan 93.94% % 3 2 Housing Bank 93.12% % 8 3 Jordan Ahli Bank 73.65% % 10 4 Jordan Islamic Bank 67.81% % 11 5 Jordan Kuwait Bank 59.30% % 14 6 (B) 82.32% 69.58% (C) Bank al Etihad 75.81% % 9 2 Capital Bank 73.58% % 12 3 Jordan Commercial Bank 68.01% % 13 4 Arab Jordan Investment Bank 60.26% % 6 1 (C) 71.92% 60.93% (D) Arab Banking Corporation (ABC) 94.00% % 5 2 Societe Generale 76.96% % 4 1 Invest Bank 56.05% % 7 3 (D) 67.93% 76.33% Sector 86.34% 79.52% 21

27 Table No. 14 Non- Performing Loans -Provision for Impairment in Direct Credit Facilities / Equity 12/ /2012 (A) Arab Bank Plc 0.36% % 1 (B) Cairo Amman Bank -0.91% % 2 1 Housing Bank 1.62% % 7 3 Bank of Jordan 1.86% % 6 2 Jordan Kuwait Bank 9.41% % 12 5 Jordan Ahli Bank 13.13% % 11 4 Jordan Islamic Bank 13.31% % 13 6 (B) 5.04% 9.64% (C) Arab Jordan Investment Bank 2.28% % 5 1 Capital Bank 3.90% % 10 3 Bank al Etihad 6.73% % 8 2 Jordan Commercial Bank 17.64% % 14 4 (C) 6.28% 12.59% (D) Arab Banking Corporation (ABC) 0.96% % 4 2 Societe Generale 1.74% % 3 1 Invest Bank 16.77% % 9 3 (D) 6.91% 5.02% Sector 2.89% 5.02% 22

28 Table No. 15 Pre-Taxes Profits (Losses) In millions USD 12/ /2012 Changes (A) Arab Bank Plc % 5 (B) Housing Bank % 12 4 Jordan Kuwait Bank % 13 5 Jordan Islamic Bank % 6 1 Cairo Amman Bank % 8 2 Bank of Jordan % 10 3 Jordan Ahli Bank % 14 6 Total (B) % (C) Capital Bank % 1 1 Bank al Etihad % 2 2 Arab Jordan Investment Bank % 9 4 Jordan Commercial Bank % 4 3 Total (C) % (D) Arab Banking Corporation (ABC) % 11 3 Invest Bank % 7 2 Societe Generale % 3 1 Total (D) % Grand Total 1, , % 23

29 Table No. 16 Net-Interest / Gross Income 12/ /2012 (A) Arab Bank Plc 67.06% % 11 (B) Jordan Kuwait Bank 77.37% % 2 1 Jordan Ahli Bank 75.24% % 9 5 Bank of Jordan 75.13% % 4 3 Cairo Amman Bank 74.05% % 3 2 Housing Bank 72.17% % 7 4 (B) 74.03% 73.77% (C) Bank al Etihad 77.43% % 10 3 Arab Jordan Investment Bank 71.44% % 6 1 Jordan Commercial Bank 69.20% % 8 2 Capital Bank 52.93% % 13 4 (C) 66.37% 63.68% (D) Arab Banking Corporation (ABC) 81.94% % 1 1 Societe Generale 77.50% % 5 2 Invest Bank 68.74% % 12 3 (D) 76.20% 70.97% Sector 70.26% 68.41% 24

30 Table No. 17 Income (loss) from Financial Assets (In Millions USD) 12/ /2012 Changes Value (A) Arab Bank Plc (B) Cairo Amman Bank Bank of Jordan Jordan Islamic Bank Housing Bank Jordan Kuwait Bank Jordan Ahli Bank Total (B) (C) Capital Bank Arab Jordan Investment Bank Jordan Commercial Bank Bank al Etihad Total (C) (D) Invest Bank Arab Banking Corporation (ABC) Societe Generale Total (D) Grand Total

31 Table No. 18 Credit and Deposits Interest Rate Structure ( % ) Items 12 / / 2012 Change ( Basis Point ) Deposits Current (0.04) Saving Time Credit Facilities Discounted Bills & Bounds Loans and Advances Overdraft (0.08) Prime Lending Rate Source : Central Bank of Jordan / Monthly Statistical Bulletin. 26

32 Table No. 19 Funding Costs 12/ /2012 (A) Arab Bank Plc 2.22% % 5 (B) Housing Bank 1.82% % 2 2 Bank of Jordan 1.90% % 3 3 Jordan Ahli Bank 2.15% % 1 1 Jordan Kuwait Bank 2.31% % 4 4 Cairo Amman Bank 2.99% % 6 5 (B) 2.11% 1.82% (C) Bank al Etihad 3.07% % 7 1 Arab Jordan Investment Bank 3.20% % 8 2 Jordan Commercial Bank 3.93% % 9 3 Capital Bank 4.10% % 10 4 (C) 3.55% 2.96% (D) Arab Banking Corporation (ABC) 4.09% % 12 2 Invest Bank 4.14% % 13 3 Societe Generale 4.34% % 11 1 (D) 4.17% 3.43% Sector 2.43% 2.14% 27

33 Table No. 20 (A) General and Administrative Expenses / Net Interest and Commissions 12/ /2012 Arab Bank Plc 45.76% % 8 (B) Jordan Kuwait Bank 34.38% % 2 1 Housing Bank 39.62% % 3 2 Bank of Jordan 43.20% % 5 3 Cairo Amman Bank 48.52% % 9 4 Jordan Ahli Bank 59.78% % 12 5 (B) 43.50% 42.35% (C) Bank al Etihad 40.39% % 4 2 Capital Bank 44.23% % 1 1 Arab Jordan Investment Bank 49.79% % 7 3 Jordan Commercial Bank 60.79% % 13 4 (C) 46.53% 39.44% (D) Societe Generale 48.07% % 11 3 Arab Banking Corporation (ABC) 50.56% % 10 2 Invest Bank 52.26% % 6 1 (D) 50.65% 48.64% Sector 45.15% 45.05% Standard < =60% 28

34 Table No. 21 General and Administrative Expenses / Revenues 12/ /2012 (A) Arab Bank Plc 26.14% % 7 (B) Jordan Kuwait Bank 21.71% % 2 1 Housing Bank 24.84% % 6 2 Bank of Jordan 30.24% % 11 3 Cairo Amman Bank 30.57% % 12 4 Jordan Ahli Bank 38.52% % 13 5 (B) 27.85% 27.92% (C) Capital Bank 19.87% % 1 1 Bank al Etihad 22.86% % 4 2 Arab Jordan Investment Bank 23.76% % 5 3 Jordan Commercial Bank 27.25% % 10 4 (C) 22.74% 22.42% (D) Societe Generale 21.39% % 8 2 Arab Banking Corporation (ABC) 25.71% % 9 3 Invest Bank 25.94% % 3 1 (D) 24.81% 25.66% Sector 26.25% 26.75% Standard 25%-30% 29

35 Table No. 22 (A) Return On Average Assets (ROAA) 12/ /2012 Arab Bank Plc 1.89% % 11 (B) Cairo Amman Bank 2.77% % 2 2 Jordan Kuwait Bank 2.66% % 1 1 Bank of Jordan 2.45% % 3 3 Housing Bank 2.10% % 5 4 Jordan Islamic Bank 2.05% % 9 5 Jordan Ahli Bank 0.78% % 13 6 (B) 2.09% 2.02% (C) Capital Bank 2.79% % 7 2 Arab Jordan Investment Bank 1.99% % 4 1 Bank al Etihad 1.75% % 12 3 Jordan Commercial Bank 0.44% % 14 4 (C) 1.90% 1.50% (D) Invest Bank 2.19% % 8 2 Arab Banking Corporation (ABC) 1.92% % 6 1 Societe Generale 1.80% % 10 3 (D) 1.98% 1.89% Sector 1.97% 1.70% Standard > =1% 30

36 Table No. 23 (A) Return On Average Equity (ROAE) 12/ /2012 Arab Bank Plc 11.71% % 11 (B) Jordan Islamic Bank 26.71% % 1 1 Cairo Amman Bank 23.24% % 2 2 Jordan Kuwait Bank 16.75% % 3 3 Bank of Jordan 16.40% % 4 4 Housing Bank 14.27% % 6 5 Jordan Ahli Bank 7.53% % 9 6 (B) 16.27% 15.94% (C) Capital Bank 17.19% % 8 2 Arab Jordan Investment Bank 14.09% % 5 1 Bank al Etihad 13.19% % 12 3 Jordan Commercial Bank 3.81% % 14 4 (C) 13.51% 10.46% (D) Arab Banking Corporation (ABC) 12.95% % 7 1 Invest Bank 11.84% % 10 2 Societe Generale 9.25% % 13 3 (D) 11.48% 10.60% Sector 13.40% 11.58% Standard > = 15% 31

37 Table No. 24 Earning Per Share (EPS) In USD 12/ /2012 (A) Arab Bank Plc (B) Jordan Kuwait Bank Cairo Amman Bank Housing Bank Jordan Islamic Bank Bank of Jordan Jordan Ahli Bank (C) Capital Bank Bank al Etihad Arab Jordan Investment Bank Jordan Commercial Bank (D) Invest Bank Arab Banking Corporation (ABC) Societe Generale

38 Table No. 25 Price / Earning (P/E) 12/ /2012 (A) Arab Bank Plc (B) Cairo Amman Bank Jordan Kuwait Bank Jordan Islamic Bank Bank of Jordan Jordan Ahli Bank Housing Bank (C) Capital Bank Bank al Etihad Arab Jordan Investment Bank Jordan Commercial Bank (D) Arab Banking Corporation (ABC) Invest Bank Societe Generale

39 Table No. 26 Market Capitalization (In millions USD) 12/ /2012 Changes (A) Arab Bank Plc 5, , % 9 (B) Housing Bank 3, , % 11 5 Jordan Islamic Bank % 5 2 Jordan Kuwait Bank % 4 1 Bank of Jordan % 8 3 Cairo Amman Bank % 14 6 Jordan Ahli Bank % 10 4 Total (B) 5, , % (C) Capital Bank % 1 1 Arab Jordan Investment Bank % 2 2 Bank al Etihad % 3 3 Jordan Commercial Bank % 6 4 Total (C) 1, % (D) Invest Bank % 13 3 Arab Banking Corporation (ABC) % 7 1 Societe Generale % 12 2 Total (D) % Grand Total 12, , % 34