His Majesty
King Abdullah II Bin Al Hussein
His Royal Highness Crown
Prince Al Hussein Bin Abdullah II
1
The Report’s table of Contents:
Our Strategic Objectives
Our Vision
Members of the Board of Directors
Executive Senior Management
Chairman’s Foreword
Economic Performance and Board of Directors’ Report:
Performance of the Jordanian Economy During 2014
Board of Directors’ Report on the Bank’s Achievements During 2014
Corporate Culture
Code of Conduct
Strategic Plan for 2015
Key Financial Analysis and Indicators for 2014
The 2014 Financial Statements:
Independent Auditor’s Report
Financial Statements
Notes
Disclosure Statements:
The 2014 Jordan Securities Commission’s Requirements and Disclosure Statements
Bank’s Commitment to Corporate Governance Requirements
Corporate Governance Code
The Executive Management’s Evaluation of the Effectiveness of Inspection and Control Systems
The Board of Directors’ Declarations
The Organizational Structure of the Bank and its Affiliates
The Bank’s Branches and Offices Within the Hashemite Kingdom of Jordan and Abroad
ATM Locations
2
3
4
5
6
10
13
32
33
35
36
42
44
51
122
140
143
153
155
157
161
165
2
Our Strategic Objectives:
For shareholders: Ensure optimal investment and maximize returns.
For customers: Bridge high-quality banking services and products so as to enhance strategic relationship
with customers.
For the management and employees: Develop human and self resources so as to ensure a promising
institutional future.
For the society: Commit and contribute to the promotion of national development and address the
country’s social, cultural and national needs.
For regulatory authorities: Fully comply with official regulatory authorities’ laws and regulations.
3
Our Vision:
The Jordan Ahli Bank’s strategic objectives emanate from its unwavering commitment to improve and develop the
Bank through employing the best globally recognized banking foundations, while focusing on three main axes:
First axis: Sustaining growth and maximizing shareholders’ equity.
Second axis: Obtaining best credit ratings.
Third axis: Expanding locally and regionally.
4
Board of Directors
H.E. Dr. Omar Razzaz ............................................................. Chairman
From 15/10/2014
H.E. Dr. Rajai Saleh Muasher .................................................. Chairman
until 14/10/2014
H.E. Mr. Saad Nabil Muasher ................................................. Deputy Chairman
from 15/10/2014
H.E. Mr. Nadim Yousef Muasher ............................................. Deputy Chairman
until 14/10/2014
Members
H.E. Mr. Nadim Yousef Muasher ............................................... Member
from 15/10/2014
H.E. Dr. François Basil ............................................................. Representing Byblos Bank (Lebanon)
from 14/10/2014
H.E. Dr. Sami Haddad ............................................................. Representing Byblos Bank (Lebanon)
until 13/10/2014
H.E. Mr. Ahmed Adel Badreldin ............................................... Representing Abraaj Capital (Dubai)
until 11/8/2014
H.E. Mr. Emad Yousef Muasher ............................................... Representing Mouasher Investment and Trading Co.
H.E. Mr. Wasef Azar ................................................................ Representing the Jordan Investor Center
H.E. Mr. Mohammad Al Abdallat ............................................. Representing the Social Security Corporation
H.E. Mr. Rafiq Saleh Muasher .................................................. Representing Rajai Mouasher & Brothers Company
H.E. Mr. Hani Fraij .................................................................... Representing Arabia S.A.L. Holding Company (Lebanon)
H.E. Mr. Mahmoud Zuhdi Malhas ............................................ Member
H.E. Mr. Ala’adin Sami ............................................................. Representing ZI&IME Co. (Saudi Arabia)
H.E. Mr. Karim Tawfik Kawar .................................................. Member
• Board session 2013-2017
5
Executive Senior Management
H.E. Mr. Marwan Awad ................................ Chief Executive Officer/General Manager
Mr. Issa Khoury ............................................ Advisor to H.E. the Chairman
Mr. Ibrahim Ghaoui ...................................... Head of Finance Group
from 7/10/2014
Mr. Basil Al Nabir ......................................... Head of Finance Group
until 6/10/2014
Ms. Lina Bakhit ............................................ Head of Ahli Capital Markets and Investments Group
Mrs. Hadil Khalaf ......................................... Head of Operations Group
Mr. Hani Farraj ............................................. Head of Logistics Group and Secretary to the Board of Directors
Mr. Kameel Haddad ..................................... Head of Remedial & Recoveries and Legal Affairs Group
Mr. Bashar Al Bakri ...................................... Head of Human Resources and Strategies Group
Mr. Samer Abu Zayed ................................... Head of Information Technology and Enterprise Programs Group
Mr. Abdul Aziz Sadaqa ................................. Head of Corporate Banking Group
Mr. Tareq Omaish ......................................... Head of Personal Banking Services and Branches Management
Group
Mr. Khaled Al Najar ...................................... Head of Small and Medium Enterprises (SMEs) Banking Services Group
Mr. Michael Nu’man ..................................... Head of Compliance and Risk Management Group
Mr. Mouin Al Bahou ..................................... Head of Credit Group
Mr. Bassem Sleem ........................................ Head of Internal Audit Group
Mr. George Farraj ......................................... Head of Foreign Branches Department
6
Chairman’s Foreword
Esteemed Shareholders,
It is with pleasure that I present to you Jordan Ahli Bank’s 59th annual report,
featuring the Board of Directors’ report on the Bank’s achievements and closing
accounts for the year 2014.
First, it is with great satisfaction that I address you in the current phase of this national
corporation’s track record of trust and accomplishments to extend our gratitude to the remarkable efforts of
His Excellency Dr. Rajai Muasher, Chairman of the Jordan Ahli Bank’s Board of Directors; for the past years his
leadership has continuously driven JAB to increasing hopes and successes. As we bid goodbye with heavy hearts to
Dr. Mouasher, we can only acknowledge the sizeable legacy of kindness and generosity he leaves in the hearts of
his colleagues, and an inspiring model of dedication and loyalty in the minds of shareholders. We remember with
a great deal of gratitude his sustained efforts geared towards developing the institution, laying its foundation,
promoting its approach and achieving its vision. In fact, his commendable efforts have allowed JAB to rise to its
prominent position, and to bring pride to both staff and stakeholder. We hope that our journey continues as we
pursue a corporate methodology that preserves JAB’s pioneering role among peer national institutions.
Undoubtedly, we fully grasp the size of the strain our national economy is undergoing, notably amidst regional
developments. However, I am confident that we will be able to achieve growth, promote modernization, and
create employment opportunities that are perfectly adapted to the capabilities of our promising youth. Despite
the scarcity of its natural resources, Jordan is endowed with highly qualified human resources, a comparative
advantage and the backbone of the production process under the modern knowledge based economy; it is
therefore imperative that we mold and make optimal use of our human capital, by enhancing the channels that
allow its adequate employment in sectors that absorb the highest number of the workforce, such as services
and knowledge. Such sectors are the key incubators of graduates and will ensure the smooth running, and
sustainability of operations, to keep pace with the knowledge revolution, push forward economic development,
and contribute to the sustained thriving of the Hashemite Kingdom.
The banking sector is mainly responsible for streamlining investments towards promising sectors, responding
to the needs of individuals and households and meeting their aspirations to improve their means of living.
Further expanding the financial inclusion of our depositors, and broadening the credit base to startups, small
and medium enterprises is at the core of the banks’ economic mission. Banking institutions also play a pivotal
role in connection with the economic policies aimed at curving unemployment, as well as being important
enablers of productive capacity, and pushing the boundaries of corporate and individual creativity alike. This
positively reflects on the economy as a whole, and bolsters local competitiveness to keep up with modern age
requirements and transformations in connection with the knowledge-based economy.
In line with our firm belief in the vital and leading role of Jordan Ahli Bank and its contribution to the
development and construction process, we have ensured that the JAB policies grant primary importance to
programs geared towards bracing the spirit of leadership, creativity and innovation, by stimulating various
activities of the Jordan Ahli Bank’s Small and Medium Enterprise (SME) Academy. It is worth reaffirming
that the Bank considers small and medium enterprises a top priority, notably due to their pioneering role in
boosting the national economy. In 2014 the Academy has pursued its free training programs with an outreach
to numerous categories of small and medium enterprises personnel, covering multiple key topics intrinsically
linked to the establishment, development, and sustainability of start-ups.
7
Accordingly, JAB launched the “Nashmeyat” initiative for female entrepreneurs, offering to secure further
opportunities for the development, success and viability of local ventures. Through the initiative, JAB offers
a wide range of consultancy services aimed at enhancing the Bank financing opportunities and increasing
the financial solvency of ventures led by businesswomen. Additional support services to rural women have
been designed to empower them socially and economically by promoting their contribution to production
and export. This initiative stems from our firm belief in the need to empower local women and increase their
participation in the economic development.
Jordan Ahli Bank made sure to extend support to all national economic endeavors in general, sponsoring
numerous events aimed at promoting economic growth, in addition to providing patronage to varied outreach
events that enhance direct communication with the local community, as well as various other activities for
social empowerment, solidarity, philanthropy and humanitarian action, in line with its corporate social
responsibility steered to support all social categories with a key focus on the underprivileged.
The higher management relentlessly strives to strengthen the financial standing of JAB and foster its solvency
by structuring the investment portfolio, notably when it comes to subsidiary and sister companies. This
was accomplished in compliance with a responsible vision that recognizes priorities and responds to the
aspirations of shareholders. In this context, the entirety of the shares of the Jordan Ahli Bank in Lebanon’s
Ahli International Bank SAL has been sold, generating capital profits that directly contributed to enhancing
the capital adequacy to 15%, in comparison with 11.9% for the year 2013, notably after the Bank proceeded to
hedge additional provisions upon concluding the profitable investment.
The Bank’s 2014 business generated pre-tax profits of JD 48.1 million, whereas profits after tax stood at JD 34.1
million, in comparison with JD 16 million in 2013. Net profit from ongoing operations registered a growth of
16%, reaching JD 15.7 million. Operating revenue witnessed a 7% increase to approximately JD 102.5 million,
while a share of the provisions was used to feed the Bank’s reserve, causing an increase in shareholders’ total
equity to JD 309 million, and a return on shareholders’ equity of 11.5%, an additional milestone of success that
adds on to the JAB record of accomplishments. JAB managed to boost its deposits base by 4.2% standing at JD
1.8 billion, while credit facilities have reached JD 1.2 billion. With the full support of stakeholders, we were
able to curve the size of non-performing loans by 7%, as well as scaling down the credit facilities provisions by
12.5%, which reflected positively on the quality of the credit facilities portfolio and improved the efficiency of
asset-liability management.
In conclusion, I would like to express my most sincere gratitude to our loyal customers and esteemed
shareholders for their trust and support, we are extremely proud of what we have accomplished together. I
also extend this recognition to my colleagues, and thank them for their commitment and cooperation, and
for actively seeking to upgrade JAB’s services. Finally, I would like to express my sincere appreciation to the
regulatory authorities and the Central Bank for ensuring the soundness of the banking sector in Jordan, under
the Hashemite leadership of His Majesty King Abdullah II.
Dr. Omar Razzaz
Chairman of the Board
Economic
Performance and
Board of Directors’
Report
10
Performance of the Jordanian Economy During 2014
Regional and international factors brought about by surrounding countries, as well as the ongoing absence
of political stability in Syria and Iraq still cast a shadow on the Jordanian economy, posing mounting burdens
on the Kingdom’s economic performance and undermining the efforts needed to improve the investment
environment. In spite of these challenges, the Jordanian economy managed to attain some achievements
during 2014, as the GDP increased by 3% over the first three quarters of last year, compared to 2.8% during the
same period of 2013. These developments came at a time when the Central Bank of Jordan’s foreign exchange
reserves continued to witness significant increases. Remittances of Jordanian expatriates, as well as tourism
income continued to rise, which strengthened the balance of payments. In addition, the inflation rate fell to
2.8% at the end of last year, on the back of a decline in global oil prices, which would alleviate the pressure
experienced by the Jordanian business sector, especially the industrial sector, that is expected to improve its
competitiveness in the domestic and foreign markets with a view to ease pressures on the Kingdom’s current
account deficit.
Within the fiscal policy framework for 2014, the government has continued making efforts so as to control the
budget deficit, which resulted in reducing the deficit by 18.2% by the end of last November, thus standing at JD
899.9 million (including foreign grants) compared to JD 1.100 billion reached during the same period in 2013.
It is worth mentioning that this decline complemented the government’s plan to reduce the budget deficit,
which had recorded a drop of 28.3% during 2013 compared to 2012. In this context, foreign grants increased by
JD 176.2 million during the same period to stand at JD 755.6 million at the end of last November, compared to
JD 579.4 million in 2013. The increase of foreign grants volume also contributed to reduce the budget decit,
which recorded a small decline that had not exceeded 1.5% excluding grants, to stand at JD 1.655 billion
compared to JD 1.680 billion by the end of November 2013. However, domestic revenues showed a significant
increase of nearly 17% to reach JD 5.299 billion compared to JD 4.532 billion in 2013. Current expenditures
increased by 10.5% during the same period to reach JD 6.076 billion. With respect to capital expenditures, they
rose by 23.4% to stand at JD 878.5 million.
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
-1.000
-2.000
201020112012November
2013
November
2014
Million JD
-1,823.9
-1,100.8
-0,899.9
-1,382.7
4,663
5,414
5,054
6,878
5,112
6,212
6,055
6,955
6,797
5,708
-1,045.2
Summary of
Central Government
Public Budget
Total Revenues and
Foreign Grants
Total Expenditures
Deficit Including Grants
11
Moving on to the central government’s net domestic public debt, it reached JD 12.664 billion at the end of last
November, achieving an increase of JD 802 million compared to the 2013 year-end level. With regards to the external
public debt, it reached JD 8.040 billion, registering an increase of JD 806 million, compared to the end of 2013.
Hence, the net public debt (domestic and external) reached around JD 20.705 billion. This means that the net public
debt increased by JD 1.608 billion during the first eleven months over the last year. Whereas, the increase in the net
public debt during 2013 went up by JD 2.516 billion due to financing the losses incurred by the National Electric
Power Company, as the government had approved to raise the electricity tariffs locally so as to reduce electricity losses
incurred by outages and irregular pumping of the Egyptian low-cost natural gas used by the government to generate
power.
Reserves of foreign currencies held at the Central Bank of Jordan reached record levels, standing at JD 14.078 billion
by the end of last year, hence, representing an increase of 17.3% compared to their level at the end of 2013. The
reserves thus sufce to cover the Kingdom’s imports of products and services for a period of around 7.5 months.
Remittances of Jordanian expatriates reached nearly JD 1.809 billion by the end of the third quarter of last
year, achieving an increase of around 2.24% in 2013. Moving on to the general price level as measured in the
Consumer Price Index (CPI) during 2014, it decreased significantly to stand at 2.8% by the end of the year
compared to an inflation rate of around 5.6% recorded by the end of 2013. In this context, the decline in global
oil prices, especially during the last quarter of last year, contributed to the decrease of the inflation rate in
Jordan in light of reduced oil derivatives’ prices in the domestic market in accordance with world prices.
%6
%5
%4
%3
%2
%1
20102011201220132014
%0
%2,3
%2,6
%2,7
%2,8
%3,3
%2,8
%5,6
%4,7
%4,4
%5
Growth in GDP
and Inflation Rate
GDP at Constant Market
Price (2014 up to the Third Quarter)
Inflation Rate as Measured
by the Relative Change in the
Consumer Price Index
12,000
14,000
16,000
10,000
8,000
6,000
4,000
2,000
20102011201220132014
Million JD
Central Bank of
Jordan’s Foreign
Currency Reserves
12,241.2
10,529.2
6,632.6
12,005.7
14,078.80
12
The trade balance deficit witnessed an increase to JD 9.453 billion by the end of last November, thus adding
4% compared to a deficit of JD 9.084 billion recorded during the same period in 2013. As such, the Kingdom’s
imports surged by JD 606.6 million, representing an increase of 4.2%, of which 26.5% were oil imports.
Meanwhile, total exports (including re-exports) have grown by JD 237 million reaching JD 5.418 billion.
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
2010201120122013November
2014
External Trade
Development
Total Exports
Imports
Trade Balance
14,733
- 9,134
- 9,907
- 9,453
15,523
4,990
5,684
5,599
5,616
5,418
14,872
13,440
- 7,756
11,050
- 6,060
13
Board of Directors’ Report on the Bank’s Achievements during 2014
The Jordan Ahli Bank completed its 59th year of significant achievements and modernization in line with the
institutional development program with a view to achieve the strategy and ambitious vision set by its Board of
Directors, as well as the efforts made by the Executive Management to accomplish these plans and strategies.
Last year, the Bank managed to achieve positive results with respect to financial performance in spite of the
economic challenges facing the Kingdom and the state of instability witnessed in the region. It also succeeded
in achieving a set of strategic objectives in a manner that optimizes benefits and improves the efficiency of the
Bank’s administrative and operational activities and services in order to maintain its leading position among all
other Jordanian banks.
The Bank’s key sectors and their respective achievements are as follows:
First: Banking Services Sector
This sector consists of the following groups:
A - Corporate Banking Group:
Despite the continuous impact of the financial crisis and regional
situation on a number of local economic sectors, the Corporate Banking
Group has nevertheless managed to maintain its portfolio, reduce credit
concentrations, expand its customer base, diversify sources of revenue
and thus achieve the targeted profitability. This has been illustrated
through the following:
With respect to the maintenance of the Corporate Banking Group’s credit
portfolio, many non-performing accounts have been handled through the
development of necessary structures complying with cash flows. A number
of account guarantees has been provided, which reduced the credit risk. In terms of growth of credit portfolio,
emphasis was placed on short-term operations associated with the financing of working capital, as well as
on the most active sector, mainly the contracting sectors, and more specifically projects financed by external
grants, and the activation of all forms of cross-selling operations.
B - Small and Medium Enterprises (SMEs) Banking Services Group:
The year 2014 witnessed significant achievements at the level of Small and Medium Enterprises (SMEs)
Banking Services Group, which played a leading and discernible role through excellence in providing banking
services to meet and finance all the needs of small and medium-sized enterprises segments. The Group
continued to provide various high-quality services and bank products packages in response to the needs
of the target categories in all sectors and in different areas through customer service centers, which count
several institutions and companies operating in various business sectors, including the industrial, services,
pharmaceutical, import and export, transport, tourism, artisanal, supply, maintenance, wholesale, retail, and
other various sectors.
In addition, the Group has taken the initiative to lend a helping hand to small and medium enterprises’ owners
by providing the necessary training within many new and existing projects in order to develop them through
the SME Academy Unit. Distinct communication channels were developed through the coordination with
supporting entities so as to benefit from the services that have been provided.
14
Furthermore, (Smart Company), a magazine specialized in the SME sector has been launched as the first
of its kind in Jordan. It includes success stories of some entrepreneurs, the challenges entrepreneurs
may face and how to overcome them, and provides advice and guidance from experts and specialists.
The magazine also covers other topics to help manage operations and businesses successfully. Electronic
and social communication channels with respect to SMEs have been activated for direct interaction
with customers. In order to bring an added value and a greater benefit for the SME Toolkit Jordan
surfers through articles, models and tools designed to help this sector grow, 17 “Content Partner”
agreements have been signed with experts to provide us with different articles and business models on
the Jordanian economy, legality, accounting and financing, public administration, marketing, human
resources, and information technology. Proceeding from the responsibility to develop small and medium
enterprises and promote the important role they play, the Group took the initiative to develop a future,
well-thought-out strategy by expanding the base of creditworthy customers, developing mechanisms to
ensure the access to a wide segment of the society in most geographical locations,
and implementing the “best practices”, policies and procedures that focus on
meeting various customers’ needs.
The Group pursued a prudent credit policy in line with the policy adopted by the
Bank by adhering to the instructions issued by the official authorities, developing
special criteria and, therefore picking and choosing the target customers
from among different economic sectors so as to diversify the credit facilities
portfolio and distribute their relevant risks among a large number of customers,
contributing to risk-control.
Sales culture dissemination among all human cadres operating within the SME
Group at the managerial and business centers levels enhanced their skills in attracting customers and
achieving excellence in relationship management. In this regard, adequate and qualified human cadres
are recruited to provide customers with the highest quality financial and banking solutions and services.
C - Personal Banking Services and Branches Management Group
Throughout the year 2014, the Group strove to reaffirm the Bank’s prominent role in the retail market. It
maintained Jordan Ahli Bank’s pioneering position at the forefront of banks in this field by expanding its
customer base and diversifying the products and services it provides, thereby accomplishing many feats, which
have been summarized as follows:
First: Branches
- Three new branches have been inaugurated in each of Jubayhah, Industrial City and Tlaa Al Ali, while a number
of existing branches were renovated (the Sweileh branch and the Industrial City office) according to construction
standards and specifications that take into account the need for smooth quality services provision and promote the
concept of customer service in a friendly environment.
- The Bank restructuring process was completed, ensuring customer service efficiency and the time allocated for the
sale of banking services.
- The Bank held several workshops and specialized training courses, focusing on employees’ support, sales, technical
skills, and improving the quality of customer service.
15
Second: E-Channels
ATM Network:
Expansion of the Bank’s ATM network to reach a total of 98 operational ATMs, as 10 new machines have been
added, while another 8 updated.
The number of ATMs providing cash deposit services increased to reach 92 machines.
Debit Cards:
Replacement of existing Maestro cards with Smart Chip Master cards.
Identification of work requirements with respect to the issuance of cards
immediately with the launch of the new banking system.
Ahli Mobile Service:
Development and update of the Ahli Mobile Service to include many new services,
such as the bill payment service via eFAWATEERcom and financial
transfers between the Bank’s customers’ accounts.
MoneyGram Service:
Launch of new marketing campaigns to promote money transfers to the Republic of Egypt.
Electronic Services:
Launch of a campaign for issuing free prepaid cards for users of electronic banking services, in addition to
issuing a booklet illustrating all details regarding electronic banking services.
Third: Products and Services
Product Development
The Group launched a range of new banking products during the year 2014, including the following:
Jordan Ahli Bank’s Go Green Card:
It is Jordan Ahli Bank’s Go Green MasterCard granted to customers to pay for environmentally-friendly products
in installments at 0% interest rate through a network of approved traders. The required interest from the trader
must therefore be collected and the card may be used as a regular credit card.
Internet Payment Gateway:
A service designed to meet the requirements of all entrepreneurs in various fields to accept all online payments
through their websites using all types of cards (debit cards, credit cards, and prepaid cards) promptly and safely.
16
Campaign to activate “Abna’i” and “Jame’ati” savings accounts to watch the 2014 World Cup matches through:
The distribution of 200 Al Jazeera Sports Channels’ Subscription as monthly prizes.
The “Abtal Al Tawfir” campaign to promote different savings account programs in exchange for incentives.
The housing loans and Ahli Loan campaign with 0% interest rate to finance the customers’ needs for home appliances.
Credit Card Products:
Various campaigns for loyalty cards program and customers’ motivation to increase the use
of their cards.
Expansion of the approved merchants’ base with respect to Al Ahli Reward Program for
immediate discounts or for voucher points’ redemption.
Amendment of the benefits and conditions of the My Family loan by reducing the conditions
imposed on the borrower.
0% Interest Installment Program (for durable goods) and 0% Interest Installment Ahli Loan.
Appointment of 13 new merchants to meet the customers’ needs from various sectors, including: solar energy,
electronics, computers, mobiles, home furniture, appliances, vision correction surgeries, home protection
devices, cosmetic dentistry, aluminum, as well as glass and watches.
Update of the Bank’s website content and any other marketing/promotional information on new products and services.
Launch of the World Elite MasterCard:
This card targets exclusive customers with high income and financial solvency. Cardholders may also benefit
from special features, offers and discounts.
Access to VIP lounges in airports using World MasterCard:
World MasterCard holders will be able to have free access to more than 500 VIP lounges in airports around the
world through the Lounge Key service.
Payroll Centralization Program:
85% of this program has already been completed and it is expected to be done during the first quarter of 2015.
Companies that transfer their employees’ salaries to the Bank have been centralized.
Special Banking Offers to Approved Companies’ Employees:
134 offers have been submitted to companies at competitive prices based on the branches and points of sale’s requests.
17
Strategic Partnerships:
A strategic partnership was established with the following institutions:
- International Rescue Committee to issue and distribute prepaid cards among individuals benefiting from the
institution’s diverse programs.
- Save the Children to issue prepaid cards.
- Caritas Foundation to issue and distribute banking checks among individuals benefiting from their programs.
- UNRWA to issue and distribute prepaid cards among individuals benefiting from the Agency’s
diverse programs.
- The United Nations’ World Food Program (WFP) – Jordan to issue and distribute prepaid cards among
individuals benefiting from the Programs’ diverse programs.
- Islamic Relief to issue and distribute prepaid cards among individuals benefiting from the institution’s
diverse programs.
- An agreement was signed with the Dubai Islamic Bank to manage and settle debit or
credit Visa cards withdrawals.
Fourth: Direct Call Center
ATM Machines Surveillance:
Transfer of the ATM machines surveillance mechanism to the Call Center, which helped improve quality and
customer satisfaction level.
Implementation of a new calling system, which helped in answering phone calls instantly and connecting with
the Quality Department for better surveillance and coordination.
Comprehensive reporting system for calls.
Activation of New Cards:
Activation of around 7,566 new credit and renewed cards.
Activation of all new ATM cards through the Call Center. The number of cards activated through the Center
reached nearly 19,498 cards.
Marketing Campaigns:
33,645 customers’ applications have been handled through social media with respect to the different marketing
campaigns that have been launched during the year ([email protected], Correspondence, JAB NET,
Facebook application, Twitter, Apply Online Application, Ahli Mobile).
Call Center Modernization Project:
The Call Center connectivity to the telephone service, modernization and development project has been
initiated. It is expected to be completed with the launch of the new banking system.
Fifth: Customers’ Data Modernization Project
57% of the customers’ data modernization project was completed by the end of 2014.
The aforementioned achievements reflected on the Group’s financial achievements, as the individuals’ facilities
portfolio increased by 8.2% by the end of 2014.
The deposits’ balance grew by 8.6%. The saving accounts had a positive impact on this increase, as their
portfolio also grew by 21%.
18
D - Ahli Capital Markets and Investments Group:
In the past year, the Ahli Capital Markets and Investments Group experienced plenty of challenges and was
forced to operate in a difficult investment environment due to economic circumstances that resulted in a
drop of interest rates on the safest investments to reach record levels. However, the Group managed, through
prudent management of assets and liabilities, to achieve adequate returns in light of an investment policy that
succeeded in achieving those returns in a safe environment, while maintaining liquidity ratios. This has enabled
the Bank to manage its banking operations with total ease and convenience. The Group was, therefore, able to
develop a clear vision of the costs and returns, through which it managed to professionally exploit the available
opportunities in order to maximize the Bank’s total revenue through exploring investment opportunities with
acceptable and calculated risks.
The Group managed to compensate the low interest rates on foreign currencies by focusing on other returns,
and expanding the customer base, which generates profitable commissions to the Bank through global
brokerage and investment services.
The Group also succeeded in seizing available investment opportunities in an effective manner and achieving
good profits. In addition, it seeks to expand its high feasibility and flexibility investment agenda to be able to
meet the challenges and fluctuations of financial markets through adopting a methodology based on structuring
and employing its assets in fields that would achieve fixed incomes and bring an added value to the Bank.
The Group continued to meet companies’ needs and investors’ aspirations, and provided key services and
support to the capital market, including financial advice and trademarks evaluation. This has been promoted
through the development of specialized reports in line with the investors’ existing trends and future aspirations,
as well as reports provided to the stakeholders and the Bank’s senior management so as to take prudent
investment decisions.
The Group also played a role in developing existing banking relations and building more distinctive ones to
benefit both parties, which have contributed to the diversity of the Bank’s income sources.
In addition to the direct cooperation with the Operations and Commercial Services Group, studies and
discussions carried out with the European Bank for Reconstruction and Development (EBRD) have been
completed and resulted in signing an agreement with the Bank, which has had a great impact on facilitating the
operations with respect to commercial services, reduction of costs, and increase of revenues and commissions
on such type of services provided. Moreover, the Group played an effective and pivotal role in following up on
the new US Foreign Account Tax Compliance Act (FATCA) and ensuring compliance of the Bank’s accounts with
other correspondent banks and vice versa.
The Group was keen to provide its cadre of employees with the opportunity to attend local and foreign
courses, seminars and conferences to develop and enhance their skills and enable them to obtain specialized
professional certificates.
Second: Support Services Sector
This sector comprises the following groups:
A - Human Resources Group:
The Human Resources Group programs for 2014 were oriented towards the dissemination and promotion of
the performance culture, and the development of standards based on comprehensive and objective systems
designed to link the individuals, departments and groups’ performance to that of the institutions based on
the principle of management by objectives. This approach had a significant impact on the achievement of the
Bank’s objectives.
19
Throughout 2014, a total of 346 training courses were held and attended by a total of 3,584 participants. The
cumulative time dedicated to training the Bank’s employees in the Jordan, Palestine and Cyprus branches
exceeded 13,592 days. Moreover, 8 development programs specialized in Training of Trainers (TOT)
and enhancing personal skills were organized, 6 of which were dedicated for the Groups’ employees and
employees who have been selected to work in the Institutional Transfer Project (DNA) as pioneers of change.
Another program that has been implemented is a program specialized in qualifying credit officials and is
considered the fourth of its kind during the past five years, in addition to a special program for exclusive
customer service employees.
The year also witnessed a momentum in training activities provided by the SME Academic Unit which was
established at the end of the year 2012. 19 training events were held with over 370 participants, including
the Bank’s customers, as well as university graduates and individuals seeking to enter the business world. It
is worth mentioning that the establishment of the Academic Unit aimed at supporting and empowering the
SME sector, which is considered to be the largest sector in the national economy, through providing knowledge
and training on the use of financial instruments, management foundations and business planning. The SME
Academic Unit also contributed to providing knowledge and training for entrepreneurs wishing to enter the
business market, empowering women through providing the same, and enhancing the customers’ affiliation to
the SME sector.
In terms of corporate social responsibility, the Bank provided more than 410 work-training opportunities for
university, junior college and school students during 2014. The training was offered as part of the students’
overall education, providing them with the practical experience that suits their different academic approaches
and educational backgrounds.
At the strategic level, a new organizational structure designed to keep pace with the latest developments at the
banking and supervisory level has been developed. More corporate flexibility and ability have also been granted
within the same framework to perform the required tasks and duties with high professionalism. In addition,
the Group completed the preparation of powers matrix for the Board of Directors and all the Bank’s executive
management committees’ current and capital expenditures/facilities. A matrix showing the number of
committees represented by each Head of Group, and a “High Committees Work Organization Guide” combining
all Bank’s committees in line with the new organizational structure have been prepared. Furthermore, the
commitment to implement the new corporate governance imposed by the Central Bank has been discussed and
the means thereof prepared with Deloitte Consulting LLP.
On a different level, and given the importance of selection and recruitment processes, relevant systems and
policies were updated, thereby prioritizing the deployment of the Bank’s internal staff to fill up vacancies.
The basis on which new employees are chosen was expanded; this particularity affected standards for the
recruitment of recent graduates who are chosen from a wide selection of students making up a database of
more than 40,000 online applicants. In cooperation with the King Abdullah II Development Fund and various
universities, the Bank has access to distinguished graduate students, whereby applicants are entered into
a yearlong qualifying program during which recruits undergo theoretical and practical training for their
occupational duties with the guidance of Jordan Ahli Bank’s expertise to support them in coping with and
engaging in the work environment. On this subject, the Bank also works with the Jordanian Civil Service
Bureau to benefit from their database.
Jordan Ahli Bank also renewed its employment page on the Bank’s website to establish links with all social
media platforms available in Jordan, Palestine and Cyprus.
Given the importance of sustaining a healthy work environment, Jordan Ahli Bank conducts annual scientific
surveys that measure job satisfaction levels, while the senior management initiates an open-door policy and
arranges for seminars and meetings between staff and administration to enhance the work environment.
In addition, the Bank is continually improving the level of benefits and incentives it offers to its employees
and their families. Trips and entertainment events were also arranged for employees and their families on
many occasions during 2014, including more than 14 planned events and activities with more than 3,059
participating employees, with the aim to form strong communication channels between staff members.
20
From this standpoint, the Human Resources Group organized a number of activities aimed
at emphasizing the importance of employees working in the Bank and raising their job
satisfaction level, and thus enabling them to be active members influencing the environment
in which they operate. In cooperation with the Information Technology Group, we succeeded
in completing more than 90% of the My Ahli Portal, a tool designed to disseminate and
promote the corporate culture within the Bank. In this regard, the present website will be
used to transfer and exchange information, views and reports, receive feedback in a manner
that motivates employees and fosters innovation and creativity, and enable employees to have permanent and
continuous access to the latest updates. This is intended to provide them with a comprehensive vision in order
to interact with stakeholders when events occur and actively participate therein.
As we understand the importance of our employees’ overall wellbeing and maintaining a healthy smoke-
free environment, the Group, with the help of the Marketing Department, launched an internal campaign
through the Ahli Cares Portal in celebration of the World No Tobacco Day, aiming at raising awareness about
the harmful effects of smoking and the benefits of quitting smoking throughout two months. Moreover, in
celebration of Mother’s Day, and in a gesture showing appreciation for women’s leading role in the business
environment and their role in raising future generations, the Group carried out an award ceremony for Ahli
Bank’s working mothers, during which symbolic gifts were distributed to all female workers who were also
honored by the senior management.
A blood donation campaign was also organized, with the aim to enhance a genuine citizenship sense among our
employees who have made donations to our society’s patients in need. A number of other employees have also
participated in charity events held by “Al-Ibtisama” Association in Mafraq Governorate, thus reflecting the human
and financial support, as well as a sense of love and belonging provided for the local community and its people.
On a different scale, 2014 witnessed the finalization of career development and career planning systems for
each occupational group, acquainting employees with the requirements they would need to advance. These
systems include replacement policies, which place focus on recruiting promising leaders and putting sufficient
investments into the process in order to recruit qualified replacements, particularly in rare and specialized fields.
Also, an automated system designed to evaluate the quantitative aspects of employees’ performance has been
developed so as to enable them to have access to their monthly and annual goals as well as achievement rates.
This will contribute to conducting an objective and transparent evaluation process, and complementing the
Bank’s employees’ performance evaluation system that was built on the basis of a 360-degree evaluation
system. This system also includes all employees in productive and other sectors.
Moreover, a service performance measurement system has been activated within business centers through
phone calls. The results of call service performance of all branches and call center have also been submitted
through an electronic application displaying the Mystery Customer’s call results. All relevant parties will be
briefed on the application’s work mechanism.
In coordination with the Direct Call Center, the employees’ performance measurement criteria have been
developed. In this regard, their performance has been measured by listening to phone calls, extracting relevant
reports and developing recommendations for providing such services. A follow-up mechanism of complaints
received was also developed, especially with respect to the complaints handling mechanism in accordance
with the Central Bank’s instructions on transparency when dealing with customers. This is in addition to the
contribution with the Personal Banking Services and Branches Management Group (E-Channels) to prepare
and implement a program designed to measure the customers’ experience in using the Ahli Mobile service, and
provide them with the necessary recommendations that aim at developing this service in compliance with their
requirements. Moreover, the Group contributed to the New Banking System Implementation Group to develop
a methodology intended to elaborate and follow up on Service Level Agreements (SLA).
In light of the study which was prepared in 2013, a new insurance policy was concluded that covers and
protects all Bank’s buildings and assets from terrorist threats, riots and political violence. In order to preserve
the employees’ safety and health, Uric Acid test was added to the free laboratory tests campaign. Coverage rates
of many medical benefits were raised, which contributed to reducing financial burdens on the employees.
21
B - Joint Central Services Operations Group:
The Operations Group continued to play its role with the upmost efficiency and professionalism in order to
achieve the Bank’s strategic goals by rendering support to the business sector and providing services to other
Bank groups. It also cooperated with the DNA team to provide the supplier with the relevant requirements, as
well as examine and implement the new global banking system intended to be applied during 2015.
Meanwhile, the Group continued improving its employees’ efficiency and practical experience by providing
training courses and workshops to fellow co-workers and new employees in the Bank’s Training Center.
In addition, the Group managed to provide customer services and treasury operations, which included
clearing operations, collection of domestic and foreign checks, as well as incoming and outgoing money
transfer services. It also worked on the centralization of many of the Bank’s operations, most importantly,
the deployment of a centralized payroll system, which included 387 entities and approximately 35,000
beneficiaries, which reflected on the increase of market share and the Bank’s competitiveness.
Among the most important projects that have been implemented in collaboration with other groups and the
Central Bank are the following: the application of the International Bank Account Number (IBAN) and the
(PLUS IBAN) project study, as well as the (RTGS) system update study and (ACH) project.
The Group also worked to increase the employees’ efficiency in providing trade and consultancy services in an
accurate, efficient and prompt manner to customers and employees, including trade and consultancy services
for incoming and outgoing credits, foreign and domestic guarantees, collection policies and central branches
operations for individuals, SMEs and major corporations’ sectors.
With regard to the 2015 Operations Group action plan, emphasis will be placed on providing adequate support
to the (DNA) project, as well as all necessary operations’ information and requirements according to the
international standards to the company in charge of supplying the new banking system. The Group will also
focus on documenting all requirements for the application of the automated banking system and offering
maximum cooperation to the Information Technology Group to ensure the success of the project.
It is expected that the (DNA) project would lead to restructuring the Group in a manner that makes it more
oriented towards centralized banking operations to make them central banking operations and include the
following commercial services: back office treasury operations, money orders, interbank operations, as well as
the shared services center, which in turn will implement the branches’ operations centrally.
The Operations Group will also work on the mechanization of all banking operations based on the best
international foundations with respect to the speed of new services provided and increase in market share,
particularly in indirect banking services, such as money orders, credits, guarantees and consultancy services,
which in turn will lead to maintaining existing customers and their service, in addition to attracting new ones.
22
C - Information Technology Group:
Many DNA implementation processes in addition to the Central Bank of
Jordan’s requirements for the purpose of applying the Straight Through
Processing have been completed with a view to speed up the completion
process of incoming and outgoing transfers and take into account the
compliance and anti-money laundering requirements.
The Group also intends to accomplish a range of projects in the following areas:
The completion of the DNA implementation processes, which include the following:
- User Acceptance Testing
- Business Simulation
- Final Training
The establishment of a Disaster Recovery Data Center, which will be a replica of the primary computer services
center that was completed and established last year so as to be used with the actual operation of the DNA project.
The development of the Information Technology Group operations manual to cope with the paradigm shift in
its work nature after the completion of the DNA, and become a full partner with the working groups in order
to provide the best services. This will be done through the implementation of global standard information
technology services management manuals, including the Information Technology Infrastructure Library for
Information Technology Services Management (ITIL3 for ITSM).
Plans also include the restructuring of the Group and the preparation of a highly specialized training
program,while providing the Group with disciplines that have not been available so far, in order to star tthe
actual operation of the new DNA systems in place.
D - Logistics Group:
Throughout 2014, the Group prepared the launch of a number of new branches in line with the Bank’s
geographic expansion policy, namely: the Tlaa Al Ali branch, the Industrial City branch – Irbid and the
Jubayhah branch. The Irbid main branch, Sweileh branch, Aqaba branch, Business Center and Training Center
have also been renovated and equipped. In addition, maintenance work was undergone in a total of 19 branches
and to a number of central departments, including building fortified rooms and doors, as well as changing a
number of cameras in accordance with the requirements of the Central Bank.
Seven locations were equipped with ATM machines and a new site has been dedicated for the Information
Technology Group in Al Hussein Business Center. Periodic maintenance works were also carried out for
generators in a number of central departments and some branches.
With respect to branches in Palestine, the implementation of the new site works for the regional administration
in Ramallah and for our new branch in Jenin started as of 22/4/2014 and 15/10/2014 for an entire year with a
maximum of a six-month period respectively.
The Logistics Group’s action plan for 2015 includes the following:
- Equip new branches of the Bank in the capital Amman, as well as in a number of governorates, including
Karak and Ajloun, and provide archival repositories with particular specifications so as to maintain the
archives for at least ten years
- Establish an electronic control center for all branches which can operate 24/7
- Establish an alternative energy generation center in order to lower energy consumption, especially in the
present circumstances
- Benefit from the location of the central customers’ data center and sales center, and transfer a leased branch
to this location, as well as provide all the construction, decorative, security requirements, and allocate specific
locations for customers’ data storage according to the special specifications and conditions so as to ensure
their safety and proper use.
23
Third: Development and Corporate Excellence Sector
A - Strategies, Marketing and Corporate Communications Group:
In order to preserve Jordan Ahli Bank’s distinguished position in the field of community and humanitarian
services and to continue strengthening its presence in the minds of Jordanians, the Department of Marketing
and Corporate Communications adopted a reliable strategy in 2014 in order to enable the Bank to reflect its
culture that is encrypted in society and translate its efforts in order to become a key partner in upgrading the
people’s quality of life and contribute to their different occasions. This strategy will be implemented through
the launch of campaigns and initiatives as well as the implementation of various sponsorships that support the
national efforts in the field of community empowerment.
The most prominent contributions of the Department of Marketing and Corporate Communications of 2014 at
Jordan Ahli Bank consisted of facilitating the process of the Bank in making positive changes and differences
through the following:
Jordan Ahli Bank supports youth and encourages their entrepreneurial and creative spirit in elaborating small
projects, through its sponsorship of the second competition of Al-Khawarizmi Initiative that aims at developing
the local community in the Al-Disi aquifer area and finding solutions to environmental, agricultural and
touristic issues. Scientifically specialized participants and new graduates will be trained within the Bank’s
Academic Unit for small and medium enterprises to enable them to transform their scientific ideas into projects
in practice, thereby enhancing their ability to meet market demands and serve their communities. This will be
reflected in their economic and social participation in a manner that serves the development goals.
Based on its strong interest in the status of women and in strengthening their leading role and economic
participation, the Bank launched the “Nashmeyat” initiative targeting women entrepreneurs of existing projects
and aiming at supporting them in developing their businesses through the various services provided. The Bank
will therefore rely on its integrated program to develop enterprise development opportunities and ensure its
success and continuity and on its vast cosmopolitan flair of advisory services aiming at improving the Bank’s
financing opportunities for women’s projects and strengthening their financial solvency. The initiative also
includes the Bank’s training and employment services by creating sustainable employment opportunities
to the projects’ entrepreneurs, as well as services supporting the rural women to enable them socially and
economically through strengthening their role in the production and export through directing them towards
different industries, production, handicrafts, and enhancing their skills.
The Bank sponsored the (TGF) 2020 cycle organized by Trestle Group Foundation in order to enable women
entrepreneurs and accelerate their businesses and make them progress by stimulating their entrepreneurial,
creativity and innovative spirit and then linking them to a network of investors and financiers to accelerate
the transformation of their leading ideas into a productive and serviceable projects with a high economic
value that can export their products and services to regional and global markets. The Bank also sponsored the
entrepreneurs’ breakfast which was held during the event carried out by the World Bank to present its study on
the Jordanian women’s participation in the economy.
Jordan Ahli Bank did not lose sight of supporting the national association and economic efforts in general, by
providing its sponsorship with a number of events aimed at promoting the local and Arab economic reality, such as
the first economic conference (The Jordanian Economy in a Changing Environment) which was organized by the
Jordan Society for Scientific Research, and the Arab Banking Conference for 2014 (Strategies for the Advancement
of Arab Economies). The Bank also sponsored the Silver Jubilee Celebrations of the Consumer Protection Act.
As part of its support of the health sector and contribution to the preservation of public health, the Bank
continued supporting the national efforts to combat cancer by supporting the trip "From the Lowest Point
to the Highest Point for Cancer" initiative which started at the Dead Sea and reached the highest point in
Africa, "Mount Kilimanjaro" in Tanzania, through the sponsorship of Her Highness Princess Dina Mired. The
Bank also supported the fourth phase of the national campaign to combat anemia due to iron deficiency in
children under the age of five and women of childbearing age (15-49 years old) in cooperation with Save the
Children Association. Furthermore, it organized a blood donation campaign in cooperation with and under the
supervision of the Central Blood Bank, in order to provide support and assistance to patients in need of blood
and to spread the culture of voluntary blood donation. It also sponsored the 15th Jordanian Pharmaceutical
Conference aimed at stimulating economic growth within the pharmaceutical sector.
24
As for its support and care for the educational sector and students, Jordan Ahli Bank sponsored numerous conferences,
notably the 2014 Teacher Skills Forum along with the Model United Nations Conference at the Ahliyyah School for
Girls (ASG) and the Model United Nations (GlobeMun) in 2014 to promote rapprochement between Jordan and the
rest of the world.
Jordan Ahli Bank’s activities included the support of the art and culture movement, as it acted as a platinum sponsor for
the Touch the Sky ceremony of the international artist Zade Dirani, as well as for the Art For All initiative which serves
as an outdoor art museum, and the Khan Arts Festival which was inaugurated in Amman in Dar Alanda to reach the
governorates of Madaba, Fuheis and Salt. The Bank is also seeking to participate in restructuring the art and culture
movement in the Kingdom by turning it into a platform gathering artists, poets and intellectuals from Jordan and
throughout the Arab region in order to present various forms of arts in an environment suitable for the entire family.
Also, the Bank officially sponsored the Jasmine Carnival that took place in Jabal Al Weibdeh, thereby strengthening
its presence in the popular events and its participation in reviving all ancient areas of Amman, as well as celebrations
and diverse street arts. In addition, the Bank sponsored the photographic competition "Al Weibdeh Through Your Eyes"
designed to strengthen the ambiance in Jabal Al Weibdeh and upgrade the skills of amateurs and professionals in the art
of photography. The Lebanese Cultural Week held by the Jordanian Lebanese Association under the patronage of Her
Highness Princess Ghida in the presence of a number of official figures in Jordan and Lebanon was also sponsored by
the Bank as a contribution to support the efforts of turning the Kingdom into a cultural tourist attraction center, and to
provide opportunities for intellectuals, artists and those interested in culture and art.
Being one of the leading institutions to sponsor various events designed to communicate directly with the community,
hold entertainment activities and provide an added value aiming at improving the intellect and psychology of the
community, the Bank sponsored the Papal visit to Jordan, as well as the handicrafts bazaar of the Circassian Charity
Association and the Haritna Festival.
As a contribution to achieve environmental sustainability, the Bank sponsored the national campaign “Clean up the
World” in collaboration with the Jordan Environment Society to clean the King of the Kingdom of Bahrain’s forest with
the participation of a number of its employees, as part of its contribution to addressing the environmental challenges that
the Kingdom faces and to find effective environmental solutions not only to its buildings, but also to their surroundings.
As always, the Bank did not hesitate to continue supporting sports and supplementing the Kingdom with young
athletes of both genders through sponsoring a series of events and sports occasions, such as the Young League at the
Mashrek International School and the Rosary School, as well as sponsoring the women’s team under the age of 18
years in the Asian Cup.
As for the charitable and humanitarian work emanating from its corporate and social responsibility, the Bank
strengthened its activities dedicated for solidarity and community empowerment addressed to support various groups
and community segments while focusing on the least privileged. The Bank launched a charity campaign with the
participation of its employees during which clothing containers were distributed in a number of its branch facilities to
collect clothing for chaste families benefiting from the clothing bank, in addition to toys that were provided to small
children. Many food packages were also distributed to needy and disadvantaged groups in various governorates of the
Kingdom for individuals and beneficiaries of charitable services totaling 41 associations. Likewise, the Bank hosted
women and children from the Jordanian Women’s Development Association of the Deaf for an Iftar dinner, and held a
celebratory day for elderly mothers on the occasion of Mother’s Day under the title "Sit El Habayeb Day."As part of its
strategy of social responsibility designed to support remote areas in the Kingdom and take care of their disadvantaged
children, the Bank sponsored a number of events such as the annual ceremony held by the committee of the Greek
Orthodox Archdiocese of love, the charity concert for the Association for Parents and Friends of the Disabled, a concert to
raise funds to support the National Assembly to preserve Petra, and the second annual charity dinner entitled: "Jerusalem
Is Calling out for You".
As a leader in the field of communication and networking, the Bank intensified its interactive marketing efforts, both with
its customers or community members, through the Marketing and Communications Department in order to strengthen
the presence of its corporate identity and positive image. Therefore, the Bank was able to develop a database of its
accounts’ followers on the electronic network; their number on Facebook increased to reach 370,000 followers, and
registered 21,000 followers on the Bank’s Twitter account compared to 1,500,000 views on its YouTube channel, which
enhanced the spread of the e-bank website and raised the number of its visitors to 1,043,000. The number of clients
using its services electronically increased too; the number of sales opportunities reached 26,000 requests for filling out
the online application. Based on its strategy to provide excellent services that satisfy its clients electronically, the Bank
officially got its account verified on Twitter allowing it to obtain a verification emblem after fulfilling all of its conditions.
25
The Bank carried out several new procedures and mechanisms and established numerous events, activities
and electronic and direct interactive campaigns all aiming at improving communication and interaction with
customers and society members, enhancing their knowledge of all that is offered, meeting their requirements,
recognizing the customer loyalty and considering their opinions and suggestions to raise the comfort levels
provided in terms of access to the desired information and easy and quick access to services and products.
As for the events, activities and interactive campaigns, the Bank launched several advertising campaigns
with respect to its products and services such as the “Mumayaz” account campaign, the World Cup savings
accounts, the “payment gateway” service, the “Eco-Friendly Ahli Card” products, the “Success Way”, the “Home
Loan”, the “Zero% Installments” program, the “Personal Loan”, the Smart Company Magazine, the awareness
campaigns of the International Bank Account Number (IBAN) application and the application of the Foreign
Account Tax Compliance Act (FATCA). The Bank also rewarded more of its customer savers by offering 7 of
“Jame’ati” account savers two Kia Cerato 2013 cars and five Mitsubishi Mirage 2014 cars that included licensing
and custom fees under the monthly draw it conducts, as well as offering two of the “Koshan Al Omor” account
savers each a villa at Greenland City.
B - Center of Excellence:
The Center of Excellence was established to harmonize the business needs and the technical capabilities of the
new banking system, and to work on the modernization, development and innovation of high quality banking
procedures according to the best international practices that ensure the existence of control mechanisms which
minimizes risks at acceptable operational costs.
C - Customers’ Products and Services Development Department:
One of the most important strategic themes that serve the organizational structure is to focus on Customer
Centricity, which required the unification of the Bank’s efforts to develop products and services to all sectors
and all segments of customers we serve. This process is made through the establishment of a central unit for
the development of products and services dealing with the creation and development of competitive and
characterized products and services such as Product Life Cycle, Product Bundling, Products Partnership,
Financial Advisory, and others. According to sophisticated methods based on the analysis and study of the
customer journey and our experience in providing services and products. This, in particular, increases the non-
traditional returns (such as commissions and fees) and expands the Bank’s market share.
In addition, the focus was placed on customer segmentation through specializing in serving each of the
customers’ sectors—banking services provided to major corporation and small enterprises, personal and
customers’ banking services, as well as investment banking—while taking into account the increased efficiency
in customer conversion within the operating sectors in the Bank and the increased possibility of cross-selling
expansion, which positively affects the Bank’s earnings and returns.
The organizational structure took into account sustainable development through the establishment of the
development and corporate excellence sector, which will enhance the corporate performance and innovation
culture as one of the corporate values that constitute a fundamental pillar for our human resources aspirations.
The following groups have been linked to this sector:
- Bank’s Strategic Planning to achieve the strategic objectives planned by the Board of Directors.
- Department of Corporate Performance to develop quantitative and qualitative criteria to ensure achievement
of the established objectives.
- Facility Programs and Projects Management Office.
- Corporate Excellence Department.
- Customers’ Products and Services Development Department.
26
Fourth: Credit Sector
A - Credit Group:
The Credit Sector is the first immune system in the banking business, and contrary to what is traditionally certified,
work was undertaken to add new tasks that will have a very significant impact on this sector, including:
- Adding the Credit Remedial Management tasks for the sector that will fulfill a non-traditional role in processing
credits in all its levels by providing the Business Support Service for the Bank’s customers
- Adding the Credit Policies Responsibilities to the Credit Group in order to reverse any effects—whether positive or
negative—on those policies in an intelligent and dynamic manner
- Assigning Credit Accreditation Responsibility to the Credit Group
- Assigning the Credit Portfolio Monitoring Responsibility
B - Remedial & Recoveries and Legal Affairs Group:
The Remedial & Recoveries Group contributed to supplementing the Bank’s income by a total of JD 13,765 million
from outstanding provisions and interest in suspense as a result of compromises and repayments that contributed
to the reduction of the non-performing loans portfolio by JD 53,573 million. Whereas, supplementing the Bank’s
revenues is expected by at least JD 10 million in 2015 while reducing the non-performing loan portfolio by at least JD
21 million. Thus, the non-performing loan portfolio will be reduced to represent approximately 10% of the Bank’s total
credit portfolio.
Fifth: Financial Affairs and Internal Audit Group
A - Financial Affairs:
The Finance Group worked on completing the application of the Business Intelligence Project on the existing
banking system and taking advantage of all the financial and analytical extracts provided by the system on a
daily basis and at maximum speed. This was reflected in the accuracy and speed of business with the Finance
Group, through:
Developing the performance measurement models and following up on the monthly deviations through a set of
measurement tools adoption that ensures the deviations determination, the accurate identification of its causes
and the provision of advanced Dash Boards for the Bank’s senior management.
Continuing to apply the policy adopted to lower the Bank’s current and capital expenses adjustment
procedures, which includes all relevant aspects in terms of powers and authorities, limits, approvals, exceptions
measurement, and analysis methods. Likewise, continuing to monitor compliance with the action plans and the
budget estimated for the expenses of all the groups, whether those related to the new projects’ expenses or the
ongoing expenses.
Participating actively in the new banking system application process with respect to all the work related to
the Finance Group, including the structuring of the accounting system, Central Bank, regulatory authorities’
periodic reports, in addition to the requirements related to calculating the debt provisions.
Completing the estimated budget project and the action plans for 2015 and preparing detailed action plans for
the business groups and the Bank’s supporting groups.
Evaluating the Bank Groups’ quarterly performance in comparison with the action plans and the estimated
budget for 2014.
27
Working in collaboration with business groups to evaluate the performance of products and calculate their
profitability, in addition to analyzing alternatives to develop them further and boost their returns.
Providing the Senior Management with several analytical and specialized studies that help in the decision making
process, which will be reflected positively on the Bank’s performance.
Providing the Senior Management with studies of the Bank’s performance in comparison with other banks operating in
Jordan, and measuring growth rates and market share, as well as detailed comparison studies with competitive banks.
Processing, monitoring, calculating debt allocations, interest in suspense, summary executions, and recovery
operations on a monthly basis.
Whereas, the future plan for 2015 included the active participation and contribution to the process of applying the new
banking system with regard to the Financial Management Group work.
Applying the monthly estimated budgets and financial analysis provisions and conducting analytical studies to predict
the Bank’s results throughout the year, including following up on and monitoring the Bank’s five-year plan.
Developing and upgrading the provisions and interest in suspense calculation programs, and reducing the manual
work to the narrowest possible limits.
B - Internal Control:
The Department worked on expanding the Inspection section tasks and functions in order to ensure the revision of the
branches compliance with the customer data updating instructions according to the Foreign Account Tax Compliance
Act (FATCA). With this respect, we reviewed all ready-made accounts at the Customer Data Unit through:
Preparing and following up on the matches and settlements for all the accounts at the Operations Department,
including current branches accounts and time deposits, foreign correspondent banks’ accounts, Central Bank account,
financial companies, Palestine branches, Cyprus branch, brokerage, Department of Finance, and Credit Cards.
Following up on the financial positions, intermediate accounts and permanent instructions in the branches in order to
avoid losses and risks that may result from these accounts.
Preparing current debit and credit accounts statements exceeding the granted limits and submitting them to the
relevant head of groups on daily basis to ensure the commitment of their employees to the pertinent instructions.
Reviewing and following up on all Bank employees’ accounts to identify transactions that do not commensurate with
their salaries, and handle each case accordingly.
Whereas the Department’s work plan for 2015 includes expanding the work and duties of the Inspection Section,
actively participating to the accounts’ review and assessment committees in accordance with the new banking system
requirements, as well as contributing to and participating in all activities and programs designed to improve the
Department’s employees’ efficiency.
Lastly, updating and modifying the Department’s work procedures to comply with the requirements of the new
banking system and regulatory changes.
28
Sixth: Other Groups
A - Risk Management and Compliance Group:
The year 2014 witnessed many achievements carried out by the Risk Management and Compliance Group, which
included the preparation and adoption of a number of risk management and compliance policies and combating
money laundering operations covering the risks faced by the Bank according to Basel and the Central Bank of Jordan’s
instructions. The policies of operational risks, market risks, internal assessment of capital adequacy, liquidity, interest
rates risks and others were established. For the purposes of applying the Risk Management and Compliance Group
methodology within the Bank, the Group prioritized a number of risks and compliance anti-money laundering
awareness workshops for the employees, including all functional levels within the Bank’s groups and departments. An
Internal Risk Committee was set up and held six meetings during 2014. The Group’s most prominent responsibilities
consisted of the revision of the Risk Management and Compliance Group reports and the recommendation for the Risk
Committee/Board of Directors to approve them.
With respect to compliance with the Corporate Governance instructions issued by the Central Bank of Jordan, the
Group set up a Corporate Governance Guide and a Charter for each of the BOD’s committees to be approved by the
Board of Directors in accordance with the relevant instructions. The instructions were classified according to their
importance and priority for the purposes of following up on the Bank’s stakeholders in order to apply these instructions
in compliance with the Central Bank of Jordan.
Market Risks Department
A market risk management policy has been prepared and approved. In addition, processes for granting credit ceilings
for countries and banks have been established, which will be presented to the concerned authorities for further
approval. Furthermore, Ahli Group for Capital Markets and Investments handled recommendations concerning
proposed ceilings for the correspondent banks, dealing in foreign currencies and precious metals agreements based
on the margins. The Department continued preparing a set of regulatory reports with respect to market, liquidity and
interest rate risks.
Credit Risks Department
The Department continuously develops a system dedicated to credit risk reports, makes sure that the early warning
system is effective and able to identify potential risks and reviews relevant policies. The Department’s tasks also
include the application of Basel’s decisions and the identification of the necessary requirements. The Department
continued following up on the data entry procedures to the credit rating system (Moody’s) in preparation for the use of
the FIRB internal rating.
Operational Risks Department
The Operational Risks Department prepared and adopted an operational risk policy and held a number of
courses for the Bank’s employees in order to raise the level of awareness and understanding of operational risks
and the importance of reporting operational errors that occur through an operational errors form which was
circulated to employees according to a mechanism adopted for this purpose. The Department also participated
in workshops related to the execution and implementation of the DNA new banking system and revised the
handbooks, work procedures, and amendments to verify the existence of adequate risk control measures
according to the working mechanism to be adopted in the new banking system. Specialized committees were
formed to prepare and adopt a business continuity plan in preparation for the completion of the master and
subsidiary business continuity plans’ preparation process (BCP).
Basel Department
The Department worked on the internal environment assessment and the preparation of a plan to meet the
observations of the supervisory review process through the development of the capital adequacy ratio calculation
models, which cover the risks of the first pillar (credit risks, market risks, operational risks). Stress test models and a
methodology for determining the alternative scenarios assumed by the Bank were developed. A set of policies (internal
assessment policy for capital adequacy and stress test policy) were developed to enhance the risk management process
and improve the internal environment by identifying the tasks and responsibilities associated with the Executive
Management and the Board of Directors. The Department also seeks to identify the approved measurement methods
to assess the risks of the first and second pillars (liquidity risks, interest within the banking portfolio, concentrations,
29
business cycle, strategy and reputation), and activate the Sound Management process (optimization) of capital.
Moreover, a methodology and matrix for the acceptable risk levels at the Bank were determined.
Compliance and Anti-Money Laundering Department
The Compliance and Anti-Money Laundering Department witnessed many achievements in 2014. In fact, since the
second quarter of 2014, best practices relevant to the Compliance Department tasks have been implemented and
full compliance with all the regulations issued by the supervisory authority has been achieved, of which the most
important are the Central Bank of Jordan’s regulations. Because of the utmost importance of the Compliance and Anti-
Money Laundering Department in the current period, work has started to initiate an environment that supports and
promotes compliance. This will take place preparing an action plan that carries out the tasks according to their relative
importance. Such tasks included the preparation and adoption of compliance and anti-money laundering policies
and frameworks (compliance guide, policy and monitor, Know Your Customer, anti-money laundering and terrorism
financing policy). According to what has been prepared and approved by the Board of Directors and the Executive
Management with respect to work procedures and policies, many of the instructions emanating from the procedures
and policies were formulated. Instructions relevant to the incoming and outgoing transfer’s matrix, deposits and
checks acceptance matrix, instructions of large cash transfer forms and instructions of the due diligence form and
its procedures applicable on the Compliance and Anti-Money Laundering Department level were issued. Many of
the Bank’s products and models adopted with respect to the extent of their adherence to the Central Bank’s relevant
instructions were also reviewed.
Raising awareness at the Bank’s Groups level was one of the priorities that have been achieved for its role in supporting
and enhancing the desired environment for compliance. Training courses were provided to most of the Ahli Bank’s
employees in accordance with the concept of relative importance in terms of employees working in the front offices and
then the entire Bank’s employees in general.
The application of the American tax compliance law has also been prioritized. In fact, the Bank’s policy related to this
law has been taken into consideration with relation to the Bank’s procedures and its regulations to ensure adherence to
the law. Moreover, specialized training courses were provided for all employees to apply the Bank’s approved policies in
this area. The achievements also included systems experience (anti-money laundering, terrorism financing and FATCA
systems) intended to be applied in parallel with the new banking system.
B - Internal Audit Group:
During the last year, the Internal Audit Group, as part of the audit teams completed the implementation of the
operational plan items based mainly on a strategic plan adopted by the Audit Committee of the Board of Directors.
The Group continued providing advisory and affirmative services for all the Bank’s units according to the Internal
Audit’s standards and best practices.
As for the correction procedures, the Internal Audit Group worked with the Bank’s various groups and units in order to
correct all the notes and observations whether they were reported in the Internal Audit reports, the External Audit, or
within the Central Bank’s inspection reports.
With regard to the training and the development of knowledge and skills, the auditors continued in collaboration with
the best institutes and training institutions in the Middle East.
It is worth mentioning that the Internal Audit Group employees received a practical and theoretical training as part of
the development and training programs prepared by the transformation management of the new banking system in
line with the role of the Internal Audit Group in this context.
30
C - Enterprise’s Programs and Projects Department:
In line with the strategy and in order for the Bank to continuously develop and implement the best global practices,
the establishment of the “Enterprise’s Programs and Projects Department” was announced in the last quarter (mid-
November) of 2014. Its regulatory subordination is directly linked to the Chief Executive Officer/General Manager,
and it is responsible for supporting the Executive Management to achieve general and strategic objectives through
the management portfolio. The main tasks assigned to this Department were identified as follows:
1- Participating in establishing links between the strategic planning and the initiatives
2- Planning for the implementation of approved initiatives and projects in cooperation with supportive groups
3- Providing a central management for the main programs and projects through adapting uniform standards to
ensure the efficient implementation and the outputs’ quality within a specific and accurate timetable
4- Identifying and documenting a comprehensive set of processes, procedures, and forms for project
management and training the groups’ parties entrusted with the participation in the project management
process to use it effectively
5- Following up and monitoring the performance of all the programs/projects and providing the necessary reports
6- Providing feedback to the concerned parties during the programs/projects implementation and after their completion
The Department’s most important achievements during the two-month period since its inauguration are the following:
1- Meeting with the entire working and supportive groups’ heads to present the Department’s future plans and the
groups’ role regarding these plans
2- Identifying all the existing projects within the Bank through intensive meetings with the concerned parties
3- Completing the documentation of the proposed procedures for the launch of projects
D - Foreign Branches Coordination Office:
The Ahli Bank branches in Palestine achieved positive results in terms of financial results; the pre-tax profits
rate rose by 8% compared to 2013 profits. This coincided with a rise in the credit facilities’ volume that reached
10%. As for the net profits of Cyprus’ branch, they grew by 84% compared to 2013.
The construction of the regional administration’s new headquarter as well as the Ramallah branch new
headquarter initiated in the same location in Al-Masyoun, Ramallah. The construction work is expected to be
completed mid-2016. In addition, the ATM network has expanded through the installation of five new ATMs in
multiple strategic areas in Palestinian cities. The total number of ATM devices reached 12.
Economic feasibility studies for the purposes of expansion and the opening of new branches in the Palestinian
market during 2015 were completed; meanwhile, the Electronic Cards and Services Department at the regional
administration in Palestine was established and supplemented by the required staff. Likewise, the Credit
Analysis Department and Customer Relations were integrated in the business center in Ramallah in order to
allow Customer Relations officers to focus more on cross selling.
A number of advertising and marketing campaigns were launched in the Palestinian market in order to develop
and promote the Ahli Bank corporate identity and image. The efficiency of regional management employees
and branches was promoted through their participation in specialized training courses.
31
With respect to the Cyprus branch, new customers were attracted by the Foreign Branches Department to
increase the deposits volume, expand the customers’ base and reduce the Bank’s concentration ratio. Whereas,
the volume of credit facilities granted by the Cyprus branch grew by 14% at the end of 2014 compared to 2013.
These positive results were recorded despite the financial crisis that hit Cyprus during the first quarter of 2013,
which still has negative repercussions on the performance of all the different economic sectors, including the
performance of the banking sector in Cyprus.
All FATCA and Know Your Customer (KYC) requirement models have been finalized according to the regulatory
authorities’ instructions in Palestine and Cyprus so as to meet the T24 new banking system’s requirements. In
this regard, the majority of customers’ data in the Palestine and Cyprus branches have been updated according
to new accounts models prepared to fulfill this purpose. Also, the necessary technical preparations were also
completed to replace the current banking system with the new one in both Cyprus and Palestine.
As for the 2015 future plan, it includes the following:
Opening a new branch in the city of Jenin, which started operating during the first quarter of 2015.
Completing the construction of the new headquarters and main branch of the regional administration in the city of
Ramallah. This project is expected to be completed by mid-2016.
Expanding the ATMs network through the installation of 6 new machines in different strategic areas.
Linking the ATMs network to the Palestinian National Switch, and thus subscribing to the Palestine ATMs
network to start using international credit cards, benefiting from immediate cash deposit services, paying
phone, water, mobile, transfer bills, and exchanging currencies, which will maximize revenues and
commissions derived from the provision of such services.
Forming a Banking Products Committee within the regional administration for the Palestine branches to update
existing products and introduce four new ones during 2015.
Introducing Premium-Banking services in the Palestine and Cyprus branches.
Continuing the update of the websites of the Palestine and Cyprus branches and developing the Palestine branch
website to provide services with respect to bill payment services along with mobile prepaid services.
Accessing the provision of Mobile Banking service in Palestine.
Introducing cash withdrawal and deposit services in the Cyprus branch in order to avoid having to make cash transfers
orders or issue bank cheques drawn on other banks, as it is currently the case.
E - Real Estate Affairs Management Unit
The Real Estate Affairs Management Unit was established in order to follow up on the affairs of properties owned by
the Bank. The Unit has carried out sales operations that are worth almost JD 9 million during 2014.
32
Corporate Culture
Corporate culture defines the individuals and companies’ concepts, beliefs, and behaviors in line with the
Jordan Ahli Bank corporate identity. In this respect, the promotion of this culture requires all Bank’s employees
to abide by the following:
Profit Focus: To maintain and increase the profits in the future.
Sales Focus: To introduce more sales jobs and double the employees’ sales times.
Client Focus: To prepare a comprehensive and new corporate organizational structure to serve all economic sectors.
Scientific Approach: To introduce modern and scientific methods to be used in evaluating risks and profits.
Merit-Based Reward System: To disburse bonuses and participate in making profits according to the individuals’
performance, productivity, and merit.
Excellence: To focus on the employees’ training quality and a continuous education methodology.
Creativity and Innovation: To introduce new products and distribute channels in line with the market requirements.
Strategic Focus: To create a future strategic planning culture among the Bank’s employees.
Technology Focus: To optimize the use of information technology.
33
Code of Conduct
This Code has been prepared with the aim of organizing the conduct of employees, work values and ethics, controls
and commitments at Jordan Ahli Bank and its subsidiaries and affiliates, whether in Jordan or other countries
where the Bank is active. Employees at different levels are committed to this Code, which contains the following
commitments, responsibilities, and duties:
(1) Commitments towards shareholders:
- Reinforce shareholder confidence in the Bank through persevering efforts to strengthen and increase the Bank’s
capabilities and profits by transforming it to a banking establishment that adheres to international standards and
seeks to compete on local, regional, and international levels.
- Commit to seeking, following up on and developing all potential business opportunities and make the most out of
them in order to achieve highest levels of profitability.
- Commit to ensuring institutional loyalty to the Bank and safeguard its confidential matters.
- Disclose all substantial and material matters that pertain to shareholders and their rights immediately.
(2) Commitments towards customers:
- Commit to providing the best services to customers with a spirit of camaraderie, courteousness, and respect to their
persons, dignities, time and interests that are not in conflict with those of the Bank.
- Commit to improving performance and efficiently completing tasks while applying the principles of integrity, fairness,
and objectivity in dealing with customers.
- Commit to innovating and applying banking products that serve customers in a wider and more effective manner
while achieving the Bank’s interests.
- Commit to providing customers with information, offers and responding to their queries in a professional, direct,
unambiguous and transparent manner, in the quickest way possible, with the Bank bearing no liability until
implementation.
- Commit to charging appropriate and fair commissions to customers, which concurrently reflect the quality of services
and degree of risk.
- Commit to establishing relationships with customers on the basis of mutual respect, impartial of personal interests.
(3) Commitments towards regulatory authorities:
- Commit to applying all laws, bylaws, and rules required in countries where the Bank operates.
- Commit to sincerely disclosing information required by regulatory authorities expressly, clearly, efficiently
and respectfully.
- Commit to safeguarding professional relationships with officials in regulatory authorities and seeking to gain their
confidence in the Bank and its commitment to all stipulated rules.
- Commit to unconditionally cooperating with regulatory authorities on professional grounds and assisting members of
the Board of Directors in the superior performance of their commitments in this regard.
(4) Commitments towards colleagues:
- Commit to ensure team spirit during work, as success in the performance of any employee depends, directly or
indirectly, on the success of work performed by the team.
- Reinforce the ties of brotherhood, friendship, mutual respect and appreciation among colleagues.
- Provide full support and advice to colleagues.
- Commit to the group’s work ethics represented by the following three rules: honesty, mutual respect, and readiness to
build common grounds of agreement.
- Commit to decreasing the times set for meetings to the bare minimum so as to save the colleagues’ time and efforts.
Also, to commit to respecting the dates set for meetings and preparing an agenda prior to the meeting.
34
(5) Commitments towards the community:
A - Professional commitments:
- Commit to offering suggestions, programs, products and services that contribute, either directly or indirectly,
to social development and improvement and expansion of banking opportunities to a wider base of clients.
- Commit to the adherence of the Bank’s advertisements and advertising campaigns to local cultural traditions,
positively contributing to reinforcing social values, enlightening local communities, and endorsing a
sophisticated banking culture.
- Refrain from offering any programs or services that aim at catering to sectarian interests based on politics,
sects or races.
B - Solidarity commitments:
- Commit to funding a planned annual program to socially support volunteer institutions operating in local
communities and cultural institutions and initiatives, as well as publish books and support other cultural activities.
- Encourage other social, productive and scientific initiatives, and improve the living standards of
underprivileged society categories.
(6) Commitments towards Jordan:
Jordan Ahli Bank is a Jordanian national establishment that will safeguard, in Jordan and abroad, Jordan’s economic
interests, the Kingdom’s image and the traditions and reputation of the Jordanian nation.
35
The Bank’s Strategic Plan for 2015
The Jordan Ahli Bank’s strategy is based on a conservative methodology adopted since its establishment as a
fundamental pillar reflecting its success in light of the challenges and risks that have accompanied its inception
and reinforced it. As it became an institution of a historical value and a leader in the banking industry and
community responsibility to confirm its commitment and responsibility towards its shareholders and customers
through the following:
The Institutional Transfer Project (DNA):
As a main core center to attain leadership through utilizing technology means in all areas and activities
to provide top-of-the-line electronic services for the Bank’s customers in a fast manner and high accuracy,
systemizing of all Bank’s operations has been completed using the new T24 banking system and through
transferring the Data Center to a new location equipped with high-end facilities that allow for 24/7 continuous
operations, and therefore offering customers an uninterrupted full access to services through delivery channels.
Also, this would allow the Bank to further develop its services that will be added to delivery channels, such as
mobile banking services and budgetary consolidation services among other innovative ones. User Acceptance
Testing, Business Simulation and Final Training processes will also be completed to ensure the best customer
experience with the Bank. A Disaster Recovery Data Center will also be established to constitute a replica of the
primary computer services center, which was completed and established this year so as to be used with the actual
operation of the DNA project. An Information Technology Group operations manual will also be developed to
cope with the paradigm shift in its work nature after the completion of the DNA, through the implementation of
global standard information technology services management manuals, including the Information Technology
Infrastructure Library for Information Technology Services Management (ITIL3 for ITSM).
Business Sector:
The Bank continues developing and upgrading credit policies, as well as managing high-profile companies’ risks and
supporting and lending money to SMEs. It also works on funding development and alternative energy projects through
developing and providing a compatible combination of credit services and products, as well as appropriate solutions to
meet the growing needs of customers, including distinctive companies, financial institutions and individuals.
Financial Position:
The Bank’s management is keen to always maintain convenient levels of liquidity and follow a rather conservative,
efficient policy in asset and liability management that bolsters the Bank’s financial position and achieves financial
solvency, while maintaining suitable levels of capital adequacy in a matter that exceeds the limits approved by local
and international regulatory authorities.
Corporate Social Responsibility (CSR):
Community solidarity and empowerment are considered the top responsibilities of the Bank thus bolstering the Bank’s
presence through supporting the nation’s economic efforts and sponsoring economic, social, cultural, and charity
events held for various segments of the society, including the less privileged in particular.
36
Key Financial Analysis and Indicators for 2014
The following are details of the changes and amendments to key items under assets, liabilities and contra accounts:
First: Assets
1. The total balance sheet (excluding contra accounts) amounted to JD 2,325,144,263 by the end of 2014, compared
to JD 2,702,629,821 as in 31/12/2013, registering a decrease of JD 377,485,558. Inclusion of the contra accounts
would bring the total to JD 2,691,004,483 by the end of 2014, against JD 3,101,533,570 registered at the end of
2013, amounting to a decrease of JD 410,529,087.
Bank Assets 2014 2013
Relative
Change
(%)
2014 Relative
Importance
(%)
2013 Relative
Importance
(%)
Cash, balances and deposits in central
banks, banks and institutions
517,126,558 491,192,355 5.3% 22.2% 18.2%
Direct credit facilities – net 1,200,994,915 1,188,001,847 1.1% 51.7% 44.0%
Investments and securities portfolio 431,812,907 310,584,529 39.0% 18.6% 11.5%
Fixed assets – net 58,694,043 54,013,760 8.7% 2.5% 2.0%
Intangible assets 1,475,817 1,777,341 -17.0% 0.1% 0.1%
Other assets and other deferred tax
assets
115,040,023 99,914,170 15.1% 4.9% 3.7%
Assets held for sale 0 557,145,819 -100.0% 0.0% 20.6%
Total assets 2,325,144,263 2,702,629,821 -14.0% 100.0% 100.0%
2. Cash in hand and at banks amounted to JD 517,126,558 in 2014, compared to JD 491,192,355 at the end of 2013,
registering an increase of JD 25,934,203.
3. The net value of securities amounted to JD 431,812,907 at the end of 2014, compared to JD 310,584,529 at the end
of 2013. This amount includes JD 394,457,542 worth of treasury bonds, treasury bills and corporate debentures,
which amounted to JD 274,865,952 by 2013.
%0,0
%18,6
%2,5
%4,9
%51,7
%22,2
%0,1
2014 Relative Importance
Direct credit facilities
Investments and securities portfolio
Fixed assets – Net
Other assets and other deferred tax assets
Cash, balances and deposits in central banks,
banks and institutions
Assets held for sale
Intangible assets
37
4. The balance of credit facilities (excluding allowances and interests in suspense) was JD 1,315,261,292 at the end of
2014, compared to JD 1,316,341,342 in 2013, a decrease of JD 1,080,050 compared to the end of 2013. This number
includes current accounts receivables amounting to JD 151,474,825, in addition to loans, promissory notes and
credit cards totaling JD 979,744,024.
5. Net xed assets amounted to JD 58,694,043 by the end of 2014, compared to JD 54,013,760 at the end of 2013.
Direct Credit Facilities 2014 2013
Relative
Change
(%)
2014 Relative
Importance
(%)
2013 Relative
Importance
(%)
Overdraft current accounts 151,474,825 179,609,299 -15.7% 11.5% 13.6%
Loans and promissory notes 966,033,208 953,018,048 1.4% 73.4% 72.4%
Credit cards 13,710,816 13,020,859 5.3% 1.0% 1.0%
Mortgages 160,280,430 144,820,281 10.7% 12.2% 11.0%
Government and public sector 23,762,013 25,872,855 -8.2% 1.8% 2.0%
Total direct credit facilities 1,315,261,292 1,316,341,342 -0.1% 100.0% 100.0%
Second: Liabilities
1. The balance of deposits in current and call accounts, savings, term and bank accounts amounted to JD
1,934,243,451 at the end of 2014, compared to JD 1,839,268,349 in 2013, registering an increase of JD 94,975,102.
Bank Liabilities 2014 2013
Relative
Change
(%)
2014 Relative
Importance
(%)
2013 Relative
Importance
(%)
Deposits and cash margins 1,934,243,451 1,839,268,349 5.2% 95.9% 76.1%
Borrowed funds 34,583,965 26,536,110 30.3% 1.7% 1.1%
Various allowances 4,285,424 3,375,908 26.9% 0.2% 0.1%
Other liabilities, income tax
allowance and deferred tax liabilities
43,208,602 34,268,324 26.1% 2.1% 1.4%
Liabilities directly associated with
assets classified as held for sale
0 514,895,799 -100.0% 0.0% 21.3%
Total liabilities 2,016,321,442 2,418,344,490 -16.6% 100.0% 100.0%
%73,4
%1,0
%11,5
%1,8
%12,2
2014 Relative Importance
Loans and promissory notes
Current accounts receivables
Mortgages
Government and public sector
Credit cards
38
2. The balance of reserves and various allowances amounted to JD 107,173,120 by the end of 2014, compared to JD
94,717,631 at the end of 2013.
Deposits and Cash Margins 2014 2013
Relative
Change
(%)
2014 Relative
Importance
(%)
2013 Relative
Importance
(%)
Deposits in banks and banking
institutions
129,360,843 120,685,322 7.2% 6.7% 6.6%
Customers’ deposits 1,523,104,814 1,461,194,373 4.2% 78.7% 79.4%
Cash margins 281,777,794 257,388,654 9.5% 14.6% 14.0%
Total deposits and cash
margins
1,934,243,451 1,839,268,349 5.2% 100.0% 100.0%
Third: Contra Accounts
1. The balance of letters of credit and acceptances decreased to JD 84,934,452 by the end of 2014, compared to
JD 110,779,344 in 2013.
2. The balance of non-utilized limits decreased to JD 101,124,169 by the end of 2014, compared to JD
104,358,528 in 2013.
3. The balance of guarantees decreased to JD 179,801,599 by the end of 2014, compared to JD 183,765,877 at
the end of 2013.
%95,9
%1,7
%2,1
%0,2
%0,0
2014 Relative Importance
Deposits and cash margins
Other liabilities, income tax allowance and
deferred tax liabilities
Borrowed funds
Various allowances
Liabilities directly associated with assets
classified as held for sale
2014 Relative Importance
Customers’ deposits
Cash margins
Deposits in banks and
banking institutions
%78,7
%14,6
%6,7
39
Fourth: Operating Income and Expenses
1. Operating Income:
Operating Income 2014 2013
Relative
Change (%)
2014 Relative
Importance (%)
2013 Relative
Importance (%)
Net interests 82,410,392 77,870,222 5.8% 74.7% 75.2%
Net commissions 20,069,160 17,891,924 12.2% 18.2% 17.3%
Total income (expenses) excluding
interests and commissions
7,820,404 7,730,787 1.2% 7.1 % 7.5%
Total operating income 110,299,956 103,492,933 6.6% 100.0% 100.0%
2. Operating Expenses:
Operating Expenses 2014 2013
Relative
Change (%)
2014 Relative
Importance (%)
2013 Relative
Importance (%)
Employees’ expenses 39,323,897 33,262,395 18.2% 43.6% 40.3%
Depreciation and amortization 7,704,965 6,909,305 11.5% 8.5% 8.4%
Other operating expenses 23,570,882 23,620,428 -0.2% 26.1% 28.6%
Allowances for direct credit
facilities decrease
18,100,318 18,472,130 -2.0% 20.1% 22.4%
Allowances for owned real
estate decrease
1,553,077 366,372 323.9% 1.7% 0.4%
Total operating expenses 90,253,139 82,630,630 9.2% 100.0% 100.0%
2014 Relative Importance
%74,7
%18,2
%7,1
Net interests
Net commissions
Total income (expenses) excluding
interests and commissions
%26,1
%43,6
%20,1
%8,5
%1,7
2014 Relative Importance
Employees’ expenses
Other operating expenses
Allowances for direct credit
facilities decrease
Depreciation and amortization
Allowances for owned real estate decrease
Financial
Statements
42
Independent Auditor’s Report
AM/ 4716
To the Shareholders of Jordan Ahli Bank
Amman – Jordan
We have audited the accompanying consolidated financial statements of Jordan Ahli Bank (a public
shareholding limited company), which comprise the consolidated statement of financial position as of
December 31, 2014, and the related consolidated statements of income, comprehensive income, changes in
shareholders’ equity and cash flows for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards, and for such internal control as
management determines necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Bank’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
43
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Jordan Ahli Bank as of December 31, 2014, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards.
Report on Regulatory Requirements
The Bank maintains proper accounting records and the accompanying consolidated financial statements are
in agreement therewith and with the consolidated financial statements presented in the Board of Directors’
report, and we recommend that the General Assembly of Shareholders approves them.
Explanatory Paragraph
The accompanying consolidated financial statements are a translation of the original consolidated financial
statements in the Arabic language to which reference is to be made.
Amman – Jordan Deloitte & Touche (M. E.) – Jordan
March 23, 2015 Asem P. Haddad
44
CONSOLIDATED STATEMENT OF FINANCIAL POSITION List A
December 31,
2014 2013
ASSETS
Note JD JD
Cash and balances at central banks 4 310,339,062 256,658,379
Balances at banks and financial institutions 5 206,787,496 207,872,141
Deposits at banks and financial institutions 6 - 26,661,835
Financial assets at fair value through profit or loss 7 389,255 1,440,320
Direct credit facilities - net 8 1,200,994,915 1,188,001,847
Financial assets at fair value through other comprehensive income 9 27,591,468 23,973,527
Financial assets at amortized cost 10 394,457,542 274,865,952
Investments in associates and unconsolidated subsidiary company 11 9,374,642 10,304,730
Properties, equipment, and projects under construction - net 12 58,694,043 54,013,760
Intangible assets - net 13 1,475,817 1,777,341
Other assets 14 110,396,262 95,516,308
Deferred tax assets 20 4,643,761 4,397,862
Assets held for sale 47 - 557,145,819
TOTAL ASSETS 2,325,144,263 2,702,629,821
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
45
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Continued
LIABILITIES AND OWNERS’ EQUITY December 31,
2014 2013
LIABILITIES: Note JD JD
Banks’ and financial institutions’ deposits 15 129,360,843 120,685,322
Customers’ deposits 16 1,523,104,814 1,461,194,373
Cash margins 17 281,777,794 257,388,654
Borrowed funds 18 34,583,965 26,536,110
Various provisions 19 4,285,424 3,375,908
Provision for income tax 20 9,860,350 6,948,876
Deferred tax liabilities 20 987,012 635,514
Other liabilities 21 32,361,240 26,683,934
Liabilities directly associated with assets classified as held for sale 47 - 514,895,799
TOTAL LIABILITIES 2,016,321,442 2,418,344,490
BANK’S SHAREHOLDERS’ EQUITY:
Subscribed and paid-up capital 22 175,000,000 165,000,000
Share premium 22 - 9,345,817
Statutory reserve 23 47,947,694 43,935,175
Voluntary reserve 23 30,236,669 26,224,150
Periodic fluctuations reserve 23 1,791,584 1,393,405
Special reserve 213,054 213,054
General banking risk reserve 23 11,005,325 11,147,743
Fair value reserve - net 24 1,833,020 1,479,320
Retained earnings 25 40,795,475 25,546,667
Total Bank’s Shareholders’ Equity 308,822,821 284,285,331
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
2,325,144,263 2,702,629,821
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
46
CONSOLIDATED STATEMENT OF INCOME List B
For the Year Ended
December 31,
Note
2014
JD
2013
JD
Interest income 26 128,889,544 123,014,122
Interest expense 27 46,479,152 45,143,900
Net Interest Revenue 82,410,392 77,870,222
Commissions revenue - net 28 20,069,160 17,891,924
Net Interest and Commissions Revenue 102,479,552 95,762,146
Foreign exchange income 29 2,887,274 2,898,259
(Loss) from financial assets at fair value through profit or loss 30 (389,999) (440,601)
Dividends from financial assets at fair value through
other comprehensive income
944,249 871,322
Other revenue 31 4,378,880 4,401,807
Total non-interest and non-commissions revenue 7,820,404 7,730,787
Gross income 110,299,956 103,492,933
Expenses:
Employees’ expenses 32 39,323,897 33,262,395
Depreciation and amortization 12,13 7,704,965 6,909,305
Other expenses 33 23,570,882 23,620,428
Provision for impairment in direct credit facilities 8 18,100,318 18,472,130
Foreclosed assets impairment provision 14 1,553,077 366,372
Total expenses 90,253,139 82,630,630
Income from operations 20,046,817 20,862,303
Revaluation gain from the dilution of the Bank’s share in former associate
11 1,536,732 -
Bank’s share of associate companies’ gains 11 83,180 11,474
Income for the year from continuing operations before
taxes - List (E)
21,666,729 20,873,777
Income tax 20 (5,964,380) (7,340,818)
Income for the year from continuing operations 15,702,349 13,532,959
Net income from discontinued operations (After Tax) - List (E) 46 18,458,463 2,470,930
Income for the year - List (C) and (D) 34,160,812 16,003,889
Attributable to:
Bank’s shareholders - List (A) 34,160,812 16,003,889
34,160,812 16,003,889
Earnings per share from continuing and discontinued operations attributable to the Bank’s shareholders:
Basic 34 -/195 -/091
Diluted 34 -/195 -/091
Earnings per share from continuing operations attributable to the Bank’s shareholders :
Basic 34 -/090 -/077
Diluted 34 -/090 -/077
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
47
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME List C
For the Year Ended
December 31,
2014
JD
2013
JD
16,003,88934,160,812Income for the year
- List (B)
Other comprehensive income items:
Items that will not be subsequently transferred to the consolidated
statement of income
(50)(77,022)
(Loss) from sale of financial assets at fair value through other
comprehensive income
(46,766)353,700Change in fair value reserve - net
15,957,07334,437,490Gross comprehensive income
- List (D)
Gross comprehensive income attributable to:
15,957,07334,437,490Bank’s shareholders
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
48
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY List D
For the Year Ended
December 31, 2014
Bank’s Shareholders’ Equity
Subscribed
and Paid -
up Capital
JD
Share
Premium
JD
Reserves
Fair Value
Reserve -
net
JD
Retained
Earnings
JD
Total
Shareholders’
Equity
JD
Non -
Controlling
Interests
JD
Total
Owners’
Equity
JD
Statutory
JD
Voluntary
JD
Periodic
Fluctuations
JD
Special
JD
General
Banking
Risks
JD
Balance - beginning of the year
165,000,000 9,345,817 43,935,175 26,224,150 1,393,405 213,054 11,147,743 1,479,320 25,546,667 284,285,331 - 284,285,331
Income for the year - List (B)
- - - - - - - - 34,160,812 34,160,812 - 34,160,812
(Loss) from sale of financial
assets at fair value through
other comprehensive income
- - - - - - - 162,972 (77,022) 85,950 - 85,950
Net change in fair value
- - - - - - - 190,728 - 190,728 - 190,728
Gross comprehensive
income - List (C)
- - - - - - - 353,700 34,083,790 34,437,490 - 34,437,490
Increase in paid-up capital *
10,000,000 (9,345,817) - - - - - - (654,183) - - -
Transfers to reserves
- - 4,012,519 4,012,519 398,179 - (142,418) - (8,280,799) - - -
Dividends distributed *
- - - - - - - - (9,900,000) (9,900,000) - (9,900,000)
Balance - end of the year
175,000,000 - 47,947,694 30,236,669 1,791,584 213,054 11,005,325 1,833,020 40,795,475 308,822,821 - 308,822,821
For the year ended
December 31, 2013
Balance- beginning of the year
150,000,000 9,345,817 41,600,704 23,889,679 1,008,374 213,054 14,275,658 1,526,086 26,468,886 268,328,258 1,786,716 270,114,974
Income for the year - List (B)
- - - - - - - - 16,003,889 16,003,889 - 16,003,889
(Loss) from sale of financial
assets at fair value through
other comprehensive income
- - - - - - - 50 (50) - - -
Net change in fair value
- - - - - - - (46,816) - (46,816) - (46,816)
Total comprehensive income
- List (C)
- - - - - - - (46,766) 16,003,839 15,957,073 - 15,957,073
Classified to liabilities directly
associated with assets
classified as held for sale
- - - - - - - - - - (1,786,716) (1,786,716)
Transfers to reserves
- - 2,334,471 2,334,471 385,031 - (3,127,915) - (1,926,058) - - -
Dividends distributed **
15,000,000 - - - - - - - (15,000,000) - - -
Balance - end of the year
165,000,000 9,345,817 43,935,175 26,224,150 1,393,405 213,054 11,147,743 1,479,320 25,546,667 284,285,331 - 284,285,331
- As of December 31, 2014 an amount of JD 4,643,761 of retained earnings is restricted against deferred tax assets according to the Central Bank of Jordan’s instructions (JD 4,397,862 as of December 31, 2013).
- The general banking risks reserve and periodic fluctuations reserve cannot be used except by an approval of the Central Bank of Jordan and the Palestinian Monetary Authority.
* The General Assembly resolved in its extraordinary meeting held on April 27, 2014 to distribute 6% of the capital as of December 31, 2013, which is equivalent to JD 9.9 million, and distribute 6.06% of
the capital as of that date from the share capital Premium and Retained Earnings which is equivalent to JD 10 million as cash dividends to shareholders for the year 2013.
** The General Assembly resolved in its extraordinary meeting held on April 29, 2013 to distribute 10% of the capital as of that date, which is equivalent to JD 15 million, as cash dividends to shareholders
for the year 2012.
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be read with them and with the accompanying audit report.
49
CONSOLIDATED STATEMENT OF CASH FLOWS List E
For the Year Ended
December 31
CASH FLOWS FROM OPERATING ACTIVITIES: Note
2014
JD
2013
JD
Income for the year from continuing operations before taxes - List (B) 21,666,729 20,873,777
Net income from discontinued operations (after taxes) - List (B) 18,458,463 2,470,930
Adjustments:
Depreciation and amortization 12,13 7,704,965 6,909,305
Provision for impairment in direct credit facilities 8 18,100,318 18,472,130
Various provisions 19 2,993,985 840,610
Foreclosed assets impairment provision 14 1,553,077 366,372
Provision for doubtful debts of sold foreclosed assets 33 - 1,000,000
(Gain) recognized on disposal of interest in former associate 11 (1,536,732) -
Loss from revaluation of financial assets at fair value through profit or loss 30 86,840 450,533
(Gain) on the sale of properties and equipment (78,552) (38,582)
Bank’s share of associate companies (gains) 11 (83,180) (11,474)
Net interest (1,499,899) 563,913
Effect of exchange rate fluctuations on cash and cash equivalents 29 (2,113,831) (2,155,068)
Net Income before Changes in Assets and Liabilities 65,252,183 49,742,446
Changes in Assets and Liabilities:
Decrease (increase) in cash and balances at central banks due after 3 months 7,705,434 (7,305,969)
Decrease in deposits at banks and financial institutions due after 3 months 26,661,835 4,608,165
(Increase) decrease in balances with restricted withdrawal (10,000,000) 55,000,000
Decrease in financial assets at fair value through profit or loss 964,225 128,464
(Increase) in direct credit facilities - net (31,093,386) (66,153,571)
(Increase) in other assets (9,596,176) (1,350,174)
Decrease (increase) in assets held for sale 557,145,819 (42,826,751)
(Decrease) in banks’ and financial institutions’ deposits due after 3 months (12,937,999) (19,490,076)
Increase in customers’ deposits 61,910,441 90,302,564
Increase in cash margins 24,389,140 21,415,958
Increase (decrease) in other liabilities 8,126,422 (3,966,685)
(Decrease) increase in liabilities directly associated with assets classified as
held for sale
(514,895,799) 40,264,722
(Decrease) in various provisions - (11,407)
Net changes in assets and liabilities 108,379,956 70,615,240
Net cash flows generated from operating activities before income tax and
provisions paid
173,632,139 120,357,686
Income tax paid 20 (11,285,403) (9,187,590)
Legal claims paid 19 (51,500) (802,866)
End of service indemnity paid 19 (2,032,969) (379,348)
Net cash flows generated from operating activities 160,262,267 109,987,882
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
50
CONSOLIDATED STATEMENT OF CASH FLOWS Continued...
For the Year Ended
December 31
CASH FLOWS FROM INVESTING ACTIVITIES: Note
2014
JD
2013
JD
(Increase) in financial assets at fair value through other comprehensive income (399,396) (23,932)
(Increase) in financial assets at amortized cost (119,591,590) (56,945,336)
(Purchase) of properties and equipment, projects under construction and
intangible assets
12,13 (12,762,847) (12,502,173)
Proceeds from sale of properties and equipment 757,675 518,360
Net cash flows (used in) from investing activities (131,996,158) (68,953,081)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in borrowed funds 8,047,855 (42,406,099)
Dividends paid to shareholders (9,739,843) -
Net cash flows (used in) financing activities (1,691,988) (42,406,099)
Effect of exchange rate fluctuations on cash and cash equivalents 29 2,113,831 2,155,068
Net increase in cash and cash equivalents 28,687,952 783,770
Cash and cash equivalents - beginning of the year 350,270,103 410,149,281
Cash and cash equivalents Classified to assets held for sale - beginning of the year - (60,662,948)
Cash and cash equivalents - end of the year 35 378,958,055 350,270,103
The accompanying notes from (1) to (48) constitute an integral part of these consolidated financial statements and should be
read with them and with the accompanying audit report.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1- General
Jordan Ahli Bank was established in the year 1955 as a Public Shareholding Limited Company under ID number (6)
on July 1, 1955 in accordance with the Companie’s Law for the year 1927, with headquarters in Amman. It is located in
Queen Noor Street, P.O. Box 3103, Amman 11181 Jordan. The Business Bank was merged into the Bank effective from
December 1, 1996. Moreover, Philadelphia Investment Bank was merged into Jordan Ahli Bank Company PSC effective
from July 1, 2005.
- The Bank provides all banking and financial services related to its business through its main office, 55 branches in
Jordan, 6 external branches and subsidiary companies in Jordan.
- The Bank’s shares are listed in Amman Stock Exchange - Jordan.
- The consolidated financial statements have been approved by the Bank’s Board of Directors in its meeting no.
(1) held on January 17, 2015 and are subject to the approval of the Central Bank of Jordan and the General
Assembly of Shareholders.
2- Significant Accounting Policies
Basis of Preparation
- The accompanying consolidated financial statements of the Bank and its subsidiary companies are prepared in
accordance with the standards issued by the International Accounting Standards Board (IASB), the interpretations
issued by the International Financial Reporting Interpretation Committee of the IASB, the prevailing rules of the
countries where the Bank operates and the instructions of the Central Bank of Jordan.
- The consolidated financial statements are prepared under the historical cost convention except for financial assets
at fair value through profit or loss, financial assets at fair value through other comprehensive income and financial
derivatives which are stated at fair value as of the date of the consolidated financial statements. Furthermore, hedged
financial assets and financial liabilities are also stated at fair value.
- The reporting currency of the consolidated financial statements is the Jordanian Dinar, which is the functional
currency of the Bank.
- The accounting policies adopted when preparing the consolidated financial statements are consistent with those
applied in the year ended December 31, 2013 except for what is stated in note (48.a).
Basis of Consolidation and Presentation
The accompanying consolidated financial statements include the financial statements of the Bank’s branches in Jordan
and abroad and the following subsidiary companies under its control. Moreover, control is achieved when the Bank
has the ability to control the financial and operating policies of the subsidiary companies to obtain benefits from their
activities. Additionally, transactions, balances, revenues, and expenses between the Bank and its subsidiaries are
eliminated. Transactions in transit are shown under “other assets” or “other liabilities” in the consolidated statement of
financial position.
On May 23, 2014 an agreement was signed with Fransabank to sell the Bank’s contribution in the shareholder’s
equity of the International Ahli Bank - Lebanon, including the Bank’s share of 97/891% in the Bank’s capital and
the Bank’s share of 89/41% of the paid-up capital advances. Moreover, the investment was excluded at the date of
April 30, 2014, and the legal procedures were completed and the approval from the Central Bank of Lebanon was
obtained on June 25, 2014.
On December 29, 2014 an agreement was signed with Al Quds Company for Learning, Training and Consulting to sell
the Bank’s contribution to Al Zarqa National College Company, including its share in the owner’s equity of 100% from
the Company’s capital, and the investment was excluded on June 30, 2014.
52
The Bank’s subsidiary companies as of December 31, 2014 are as follows:
A - Ahli Micro Finance Company
Ahli Micro Finance Company is wholly owned by Jordan Ahli Bank. The Company’s objective is to grant loans to limited
income individuals. Its paid-up capital amounted to JD 3.5 million, total assets amounted to JD 13,308,654 and total
liabilities of JD 6,730,885 as of December 31, 2014. Its total revenue amounted to JD 3,984,843 and total expenses
amounted to JD 3,475,141 for the year ended December 31, 2014 before excluding any transactions, balances, revenue
and expenses between the Company and the Bank.
B - Ahli Financial Brokerage Company
Ahli Financial Brokerage Company is wholly owned by Jordan Ahli Bank with a capital of JD 15 million. Its total
assets amounted to JD 16,938,003 and total liabilities amounted to JD 945,775 as of December 31, 2014. Moreover,
its revenue amounted to JD 713,667 and its expenses amounted to JD 369,257 for the year ended December 31, 2014
before excluding any transactions, balances, revenue and expenses between the Company and the Bank.
C - Ahli Financial Leasing Company
Ahli Financial Leasing Company is wholly owned by Jordan Ahli Bank and its capital is JD 10 million. Its total assets
amounted to JD 43,203,731 and total liabilities amounted to JD 26,574,886 as of December 31, 2014. Moreover, its
total revenue amounted to JD 3,149,331 and its total expenses amounted to JD 1,317,028 for the year ended December
31, 2014 before excluding any transactions, balances, revenue and expenses between the Company and the Bank.
- The financial statements of the subsidiary companies are prepared for the same financial year using the same
accounting policies adopted by the Bank. If the accounting policies adopted by the companies are different from those
used by the Bank, the necessary adjustments to the financial statements of the subsidiary companies are made to
comply with the accounting policies followed by the Bank.
- The results of the subsidiaries are incorporated into the consolidated statement of income from the effective date
of acquisition which is the date on which actual control over the subsidiaries is assumed by the Bank. Moreover, the
operating results of the disposed subsidiaries are incorporated into the consolidated statement of income up to the
effective date of disposal which is the date on which the Bank loses control over the subsidiaries.
- Non-controlling interests represent the portion of owners’ equity not owned by the Bank in the subsidiaries.
- In case separate financial statements are prepared for the Bank as a standalone entity, investments in subsidiary
companies are shown in accordance with equity method.
53
Sectors Information
- The business sector represents a group of assets and operations that share in providing products or services subject to
risks and rewards different from those of other business sectors, which is measured according to the reports used by
the executive manager and the Bank’s main decision maker.
- The geographic sector relates to the provision of products or services in a specific economic environment subject to
risks and rewards different from those of sectors operating in other economic environments.
Direct Credit Facilities
- The provision for the impairment of direct credit facilities is recognized when it is obvious that the amounts due to the
Bank cannot be recovered or when there is an objective evidence of the existence of an event negatively affecting the
future cash flows of the direct credit facilities and the impairment amount can be estimated. The provision is taken to
the consolidated statement of income.
- Interest and commission on non-performing credit facilities are suspended in accordance with the instructions of the
Central Bank of Jordan and applicable laws in the countries where the Bank’s branches or subsidiaries operate.
- Impaired credit facilities, for which specific provisions have been taken, are written off by charging the provision after
all efforts have been made to recover the assets. Any surplus in the provision is taken to the consolidated statement of
income, while debt recoveries are taken to income.
Financial Assets Measured at Amortized Cost
- Financial assets measured at amortized cost are the financial assets which the Bank’s management intends according
to its business model to hold to collect the contractual cash flows which comprise the contractual cash flows that are
solely payments of principal and interest on the principal outstanding.
- Financial assets measured at amortized cost are recorded at cost upon purchase plus acquisition expenses. Moreover,
the issue premium/ discount is amortized using the effective interest rate method, and recorded to interest. Any
allocations resulting from the decline in value of these investments leading to the inability to recover the investment
or part thereof are recorded, and any impairment is recorded in the consolidated statement of income.
- Impairment in financial assets represent the difference between the book value recorded at amortized cost and the
present value of the expected cash flows discounted at the market interest rate.
- It is not allowed to reclassify any financial assets to or from this item except for the cases specified in International
Financial Reporting Standards (in case any of these assets were sold before maturity date, the result of this sale is
recorded in the consolidated statement of income in a separate line item along with its explanation according to the
IFRS requirements regarding this issue).
54
Financial Assets at Fair Value Through Profit or Loss
- Financial assets at fair value through profit or loss represent shares, bonds and debentures held by the Company for the
purpose of trading and achieving gains from the fluctuations in market prices in the short term.
- Financial assets at fair value through the statement of income are initially stated at fair value at acquisition date
(purchase costs are recorded at statement of income upon purchase). They are subsequently re-measured to fair value
as of the date of the financial statements. Moreover, changes in fair value are recorded in the consolidated statement of
income including the change in fair value resulting from foreign currency exchange translation of non-monetary assets.
Gains or losses resulting from the sale of these financial assets are taken to the consolidated statement of income.
- It is not allowed to reclassify any financial assets to/from this item except for the cases specified in International
Financial Reporting Standards.
- It is not allowed to reclassify any financial assets that do not have prices in active markets and active dealings in
this item.
- Dividends and interests from these financial assets are recorded in the consolidated statement of income.
Financial Assets at Fair Value Through Other Comprehensive Income
- These assets represent investments in equity instruments for the purpose of keeping them to generate profits on the
long term and not for trading purposes.
- Financial assets at fair value through other comprehensive income are initially stated at fair value in addition to
acquisition costs upon purchase. They are subsequently re-measured to fair value, the change in fair value appears
in the consolidated statement of comprehensive income and in the owners’ equity including change in fair value
resulting from foreign currency exchange translation of non-monetary assets. Gains or losses resulting from the sale
of these financial assets are taken to the consolidated statement of comprehensive income and owners’ equity. The
fair value reserve balance that relates to the equity instruments sold is transferred directly to the retained earnings
and not through the consolidated statement of income.
- There is no impairment testing on these assets.
- Dividends from these financial assets are recorded in the consolidated statement of income.
Fair Value
The fair value of a listed financial asset is based on its closing market price prevailing on the date of the consolidated
financial statements.
For an unlisted financial asset with no quoted market price, no active trading for some financial assets or derivatives or
no active market, its fair value is estimated by one of the following ways:
- Comparing it to another financial asset with similar terms and conditions.
- Analyzing future cash flows and using the discounted cash flow technique through adopting a discount rate used in a
similar instrument.
- Adopting pricing model options.
- Long-term non-interest bearing financial assets and financial liabilities are valued according to the discounted cash
flows and the effective interest rate method. The discount interest is taken to interest income within the consolidated
statement of income.
The valuation methods aim to obtain a fair value reflecting market expectations, taking into consideration market
factors and any expected risks and benefits upon estimating the value of the financial assets. Moreover, financial assets’
fair value of which cannot be reliably measured are stated at cost net of any impairment in their value.
55
Impairment in the Value of Financial Assets
The Bank reviews the values of financial assets on the date of the consolidated statement of financial position in
order to determine if there are any indications of impairment in their value individually or as a portfolio. In case such
indications exist, the recoverable value is estimated so as to determine the impairment loss.
The impairment is determined as follows:
- The impairment in financial assets measured at amortized cost is the difference between the book value and present
value of the future cash flows discounted at the original interest rate.
- The impairment in the financial assets at fair value through profit or loss, income recorded at fair value represents the
difference between the book value and fair value.
- The impairment in the financial assets recorded at cost is the difference between the book value and the present value
of the expected cash flows discounted at market interest rate of similar instruments.
The impairment in value is recorded in the consolidated statement of income. Any surplus in the subsequent period
resulting from previous declines in the fair value of financial assets is taken to the consolidated statement of income
except for the impairment of financial assets at fair value through the statement of comprehensive income, in which
case the impairment is recovered through the fair value reserve.
Investment in Associates and Unconsolidated Subsidiary Company
- Associated companies are those companies whereby the Bank exercises significant influence over their financial and
operating policies but does not control them and whereby the Bank owns between 20% and 50% of voting rights.
Investments in associates are stated according to the equity method in the consolidated financial statements.
- Investment in Ahluna for Cultural and Social Work Company is shown at cost as it is a not-for-profit company. Its net
income is used for social and charitable work.
- In case separate financial statements are prepared for the Bank as an independent entity, investments in subsidiaries
are shown at cost.
Properties and Equipment
- Properties and equipment are stated at cost net of accumulated depreciation and any impairment in their values.
Properties and equipment (except for land) are depreciated when ready for use according to the straight-line method
over their estimated useful lives using the following annual rates:
%
Buildings 2
Furniture, fixtures and equipment 10- 20
Vehicles 15
Computers 20- 30
Other 15- 20
- When the carrying amounts of properties and equipment exceed their recoverable values, assets are written down
and impairment losses are recorded in the consolidated statement of income.
- The useful lives of properties and equipment are reviewed at the end of each year. In case the expected useful life is
different from what was determined previously, the change in estimate is recorded in the following years, being a
change in estimate.
- Properties and equipment are derecognized upon their disposal or when there are no expected future benefits from
their use or disposal.
56
Provisions
Provisions are booked when the Bank has an obligation on the date of the consolidated statement of financial position
as a result of past events, it is probable to settle the obligation, and a reliable estimate of the amount of the obligation
can be made.
Provision for Employees’ End-of-Service Indemnities
- A provision for legal and contractual commitments relating to employees’ end-of-service indemnities is taken
according to the Bank’s internal regulations on the consolidated statements of financial position date.
- Payments to terminated employees are deducted from the provision amount. Moreover, the required provision for
end-of-service indemnities for the year is charged to the consolidated statement of income.
Income Tax
- Income tax expenses represent accrued taxes and deferred taxes.
- Income tax expenses are accounted for on the basis of taxable income. Moreover, taxable income differs from income
declared in the consolidated financial statements because the latter includes non-taxable revenue or tax expenses
not deductible in the current year but deductible in subsequent years, accumulated losses acceptable by the tax
authorities, and items not allowable for tax purposes or subject to tax.
- Taxes are calculated on the basis of the tax rates prescribed according to the prevailing laws, regulations and
instructions of the countries where the Bank operates.
- Deferred taxes are taxes expected to be paid or recovered as a result of temporary timing differences between the
value of the assets and liabilities in the consolidated financial statements and the value of the taxable amount.
Deferred tax is calculated on the basis of the liability method in the consolidated statement of financial position
according to the rates expected to be applied when the tax liability is settled or tax assets are recognized.
- Deferred tax assets and liabilities are reviewed as of the date of the consolidated statement of financial position, and
reduced in case it is expected that no benefit will arise therefrom, partially or totally.
Capital
Costs of Issuing or Purchasing the Bank’s Shares
Costs of issuing or purchasing the Bank’s shares are recorded in retained earnings net of any tax effect of these costs.
If the issuing or purchase process has not been completed, these costs are recorded as expenses in the consolidated
statement of income.
57
Accounts Managed on Behalf of Customers
These represent the accounts managed by the Bank on behalf of its customers, but do not represent part of the
Bank’s assets. The fees and commissions on managing these accounts are taken to the consolidated statement of
income. Moreover, a provision is taken for the decline in the value of capital-guaranteed portfolios managed on
behalf of its customers.
Offsetting
Financial assets and financial liabilities are offset, and the net amount is reflected in the consolidated statement of
financial position only when there are legal rights to offset the recognized amounts, the Bank intends to settle them on
a net basis, or assets are realized and liabilities are settled simultaneously.
Realization of Income and Recognition of Expenses
- Income is realized and expenses are recognized on an accrual basis except for interest and commission on
non-performing credit facilities, which are not recognized as revenue but taken to the interest and commission
in suspense account.
- Commissions are recorded as revenue
’s
when the related services are provided. Moreover, dividends are recorded
when realized (approved by the General Assembly).
Recognition of Financial Assets
Financial assets are recognized on the trade date (the date on which the Bank commits itself to purchase or sell the
financial assets).
Financial Derivatives and Hedge Accounting
- Hedged Financial Assets:
For hedge accounting purposes, the financial derivatives are stated at fair value. Hedges are classified as follows:
- Fair Value Hedge:
Hedge for the change in the fair value exposures of the Bank’s assets and liabilities.
When the conditions of effective fair value hedge are met, the resulting gain or loss from re-measuring the fair value
hedge as well as change in the fair value of hedged assets and liabilities is recognized in the consolidated
statement of income.
When the conditions of effective portfolio hedge are met, the gain or loss resulting from the revaluation of the hedging
instrument at fair value as well as the change in the fair value of the assets or liabilities portfolio are recorded in the
consolidated statement of income for the same period.
- Cash Flow Hedge:
Hedge for the change in the current and expected cash flows’ exposures of the Bank’s assets and liabilities.
When the conditions of effective cash flow hedge are met, the gain or loss of the hedging instruments is recognized
in the consolidated statement of comprehensive income and owners’ equity. Such gain or loss is transferred to the
consolidated statement of income in the period in which the hedge transaction impacts the consolidated
statement of income.
58
- Hedge for Net Investments in Foreign Entities:
When the conditions of the hedge for net investment in foreign entities are met, fair value is measured for the hedging
instrument of the hedged net assets. In case of an effective relationship, the effective portion of the loss or profit related
to the hedging instrument is recognized in the consolidated statement of comprehensive income and owners’ equity.
On the other hand, the ineffective portion is recognized in the consolidated statement of income. The effective portion
is recorded in the consolidated statement of income when the investment in foreign entities is sold.
- When the conditions of the effective hedge do not apply, gain or loss resulting from the change in the fair value of the
hedging instrument is recorded in the consolidated statement of income in the same period.
Financial Derivatives for Trading
The fair value of financial derivatives for trading (such as forward foreign currency contracts, future interest rate
contracts, swap agreements and foreign currency options) is recorded in the consolidated statement of financial
position. Fair value is measured according to the prevailing market prices, and if not available, the measurement
method should be disclosed. The change in fair value is recognized in the consolidated statement of income.
Repurchase and Resale Agreements
- Assets sold with a simultaneous commitment to repurchase them at a future date continue to be recognized in the
consolidated financial statements as a result of the Bank’s continuous control over these assets and as the related risk
and benefits are transferred to the Bank upon occurrence. They also continue to be measured in accordance with the
adopted accounting policies. Amounts received against these contracts are recorded within liabilities under borrowed
funds. The difference between the sale price and the repurchase price is recognized as an interest expense amortized
over the contract period using the effective interest rate method.
- Purchased assets with corresponding commitment to sell at a specific future date are not recognized in the
consolidated financial statements because the Bank has no control over such assets and the related risks and benefits
are not transferred to the Bank upon occurrence. Payments related to these contracts are recorded under deposits
with banks and other financial institutions or loans and advances in accordance with the nature of each case. The
difference between the purchase price and resale price is recorded as interest revenue amortized over the life of the
contract using the effective interest rate method.
Foreclosed Assets
Assets that have been subject to foreclosure by the Bank are shown under "other assets" at the acquisition value or
fair value, whichever is lower. As of the consolidated statement of financial position’s date, these assets are revalued
individually at fair value. Any decline in their market value is taken as a loss to the consolidated statement of income
whereas any such increase is not recognized. Subsequent increase is taken to the consolidated statement of income to
the extent that it does not exceed the previously recorded impairment.
Intangible Assets
A - Goodwill
- Goodwill is recorded at cost, and represents the excess amount paid to acquire or purchase the investment in
an associate or a subsidiary on the date of the transaction over the fair value of the net assets of the associate or
subsidiary at the acquisition date. Goodwill resulting from the investment in a subsidiary is recorded as a separate
item as part of intangible assets, while goodwill resulting from the investment in an associated company constitutes
part of the investment in that company. The cost of goodwill is subsequently reduced by any decline in the value of
the investment.
- Goodwill is distributed over the cash generating units for the purpose of testing the impairment in its value.
- The value of goodwill is tested on the date of the consolidated financial statements. Goodwill value is reduced when
there is evidence that its value has declined or the recoverable value of the cash generating units is less than book
value. The decline in value is recorded in the consolidated statement of income as impairment loss.
59
B - Other Intangible Assets
- Other intangible assets acquired through merging are stated at fair value at the date of acquisition, while other
intangible assets purchased otherwise are recorded at cost.
- Intangible assets are to be classified on the basis of either definite or indefinite useful life. Intangible assets with definite
useful economic lives are amortized over their useful lives using the straight line method for a period not more than 5
years from the acquisition date and recorded as an expense in the consolidated statement of income. Intangible assets
with indefinite lives are reviewed for impairment as of the consolidated financial statements’ date, and impairment loss
is recorded in the consolidated statement of income.
- No capitalization of intangible assets resulting from the Bank’s operations is made. They are rather recorded in the
consolidated statement of income in the same period.
- Any indications of impairment in the value of intangible assets as of the consolidated financial statements’ date
are reviewed. Furthermore, the estimated useful lives of the impaired intangible assets are reassessed, and any
adjustment is made in the subsequent period.
- Software and computer programs are amortized over their estimated economic useful lives at rates ranging
from 20% to 30%.
Foreign Currency
- Transactions in foreign currencies during the year are recorded at the exchange rates prevailing at the date of
the transaction.
- Financial assets and financial liabilities denominated in foreign currencies are translated at the average exchange
rates prevailing on the consolidated statement of financial position date and declared by the Central Bank of Jordan.
- Non-monetary assets and liabilities denominated in foreign currencies and recorded at fair value are translated on the
date when their fair value is determined.
- Gains or losses resulting from foreign currency translation are recorded in the consolidated statement of income.
- Translation differences for non-monetary assets and liabilities denominated in foreign currencies are recorded as part
of the change in fair value.
- When consolidating the financial statements, assets and liabilities of the branches and subsidiaries abroad are
translated from the functional currency to the reporting currency using the average exchange rates prevailing on
the consolidated statement of financial position’s date and declared by the Central Bank of Jordan. Revenue and
expense items are translated using the average exchange rates during the year, and exchange differences are shown
in the consolidated statement of comprehensive income and within owners’ equity. When one of these subsidiaries
or branches is sold, the related foreign currency differences are included in the revenue/expenses within the
consolidated statement of income.
Cash and Cash Equivalents
- Cash and cash equivalents comprise cash balances with central banks and balances with banks and financial
institutions maturing within three months, less balances due to banks and financial institutions maturing within
three months and restricted funds.
Non-Current Assets Held for Sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. This condition is met only when the asset is available for immediate
sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale is
highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a
completed sale within one year from the date of classification.
When the Bank is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of
that subsidiary are classified as held for sale when the criteria described above are met.
Non-current assets classified as held for sale are measured at the lower of their previous carrying amount and fair value
less costs to sell. The Company’s business results are recorded separately as net income from discontinued operations
in the consolidated statement of income.
60
3 - Accounting Estimates
Preparation of the consolidated financial statements and the application of the accounting policies require
the Bank’s management to perform assessments and assumptions that affect the amounts of financial assets,
financial liabilities, fair value reserve, and to disclose contingent liabilities. Moreover, these assessments and
assumptions affect revenues, expenses, provisions and changes in the fair value shown in the consolidated
statement of other comprehensive income and owners’ equity. In particular, this requires the Bank’s
management to issue significant judgments and assumptions to assess future cash flow amounts and their
timing. Moreover, the said assessments are necessarily based on assumptions and factors with varying degrees
of consideration and uncertainty. In addition, actual results may differ from assessments due to the changes
resulting from the conditions and circumstances of those assessments in the future.
We believe that the assessments adopted in the consolidated financial statements are reasonable. The details
are as follows:
- A provision for non-performing loans is taken on the bases and estimates approved by management in
conformity with International Financial Reporting Standards (IFRSs). The outcome of these bases and
estimates is compared against the provisions that should be taken under the instructions of the regulatory
authorities, through which the Bank’s branches and subsidiary companies operate. Moreover, the strictest
outcome that conforms to the IFRSs is used.
- Impairment loss taken after a sufficient and recent evaluation of the acquired properties has been conducted
by approved surveyors. The impairment loss is reviewed periodically.
- Management estimates the impairment in value when the market prices reach a certain limit that indicates
the impairment loss provided that this does not contradict the instructions of the regulatory authorities or
International Financial Reporting Standards.
- The fiscal year is charged with its portion of income tax expenditures in accordance with the regulations, laws and
accounting standards. Moreover, deferred tax assets and liabilities and the income tax provision are recorded.
- Management periodically reassesses the economic useful lives of tangible and intangible assets for the
purpose of calculating annual depreciation and amortization based on the general condition of these assets
and the assessment of their useful economic lives expected in the future. Impairment loss is taken to the
consolidated statement of income.
- A provision is set for lawsuits raised against the Bank. This provision is based on an adequate legal study
prepared by the Bank’s legal advisor. Moreover, the study highlights potential risks that the Bank may
encounter in the future. Such legal assessments are reviewed periodically.
- Management frequently reviews financial assets stated at fair value or at cost to estimate any impairment in
their value. The impairment amount is taken to the consolidated statement of income.
- Fair value hierarchy: The level in the fair value hierarchy is determined and disclosed into which the fair
value measurements are categorized in their entirety, segregating fair value measurements in accordance
with the levels defined by the IFRS. The difference between Level 2 and Level 3 fair value measurements
represents whether inputs are observable and whether the unobservable inputs are significant, which may
require judgment and a careful analysis of the inputs used to measure fair value, including consideration of
factors specific to the asset or liability. When evaluating the fair value of the financial asset or liability, the
Bank uses information from the market if available and in absence of the first level inputs, the Bank deals with
the independent and qualified parties to prepare evaluation studies. Appropriate methods of assessment and
inputs used to prepare the evaluation are reviewed by management.
61
4 - Cash and Balances at Central Banks
This item consists of the following:
December 31
2014
JD
2013
JD
Cash in vaults 36,972,686 42,989,938
Balances at central banks:
- Current and demand accounts 53,704,785 9,739,318
- Time and notice deposits 134,445,405 124,713,054
- Mandatory cash reserve 85,216,186 79,216,069
Total balances at central banks 273,366,376 213,668,441
Total cash and balances at central banks 310,339,062 256,658,379
- In addition to the cash reserve at central banks, there are restricted balances amounting to JD 120,200 as of
December 31, 2014 (JD 311,336 as of December 31, 2013).
- There are no balances that mature within a period exceeding three months as of December 31, 2014 against
JD 7,514,298 as of December 31, 2013.
5 - Balances at Banks and Financial Institutions
This item consists of the following:
December 31
Local banks and financial institutions:
2014
JD
2013
JD
- Current and demand accounts 92,153 49,209
- Deposits due within 3 months or less 64,898,999 53,624,549
Total Local 64,991,152 53,673,758
Banks and financial institutions abroad:
- Current and demand accounts 40,386,158 27, 517,513
- Deposits due within 3 months or less 98,574,186 126,680,870
- Certificates of deposit which mature within 3 months or less
2,836,000 -
Total Abroad 141,796,344 154,198,383
206,787,496 207,872,141
- Non-interest bearing balances at banks and nancial institutions amounted to JD 39,798,801 as of December 31, 2014
(JD 27,400,216 as of December 31, 2013).
- Restricted balances amounted to JD 10 million for borrowed funds by a subsidiary company as of December 31, 2014.
62
6 - Deposits at Banks and Financial Institutions
This item consists of the following:
Local Banks and
Financial Institutions
December 31
Banks and Financial
Institutions Abroad
December 31
Total
December 31
Description
2014
JD
2013
JD
2014
JD
2013
JD
2014
JD
2013
JD
Deposits maturing within a
period of:
- 3 to 6 months - - - 1,367,911 - 1,367,911
- 6 to 9 months - 10,000,000 - - - 10,000,000
- 9 months to one year - 10,000,000 - 5,293,924 - 15,293,924
Total
- 20,000,000 - 6,661,835 - 26,661,835
- Restricted deposits amounted to JD 10 million for borrowed funds from a subsidiary company as of December 31, 2013.
7 - Financial Assets at Fair Value Through Profit or Loss
This item consists of the following:
December 31
2014
JD
2013
JD
Company shares 389,255 1,440,320
389,255 1,440,320
63
8 - Direct Credit Facilities - Net
This item consists of the following:
December 31
2014
JD
2013
JD
Individuals (retail):
Overdraft accounts 8,113,579 5,646,259
Loans and promissory notes* 350,270,879 333,705,903
Credit cards 13,710,816 13,020,859
Real estate loans
160,280,430 144,820,281
Companies:
a- Corporates:
Overdraft accounts 89,596,857 115,255,995
Loans and promissory notes* 440,565,494 459,746,374
b- small and medium companies:
Overdraft accounts 53,764,389 58,707,045
Loans and promissory notes* 175,196,835 159,565,771
Government and public sector
23,762,013 25,872,855
Total 1,315,261,292 1,316,341,342
(Less): Provision for impairment in direct
credit facilities
(91,239,174) (104,360,716)
Suspended interest (23,027,203) (23,978,779)
Net direct credit facilities 1,200,994,915 1,188,001,847
* Net after deducting interest and commissions received in advance of JD 11,371,344 as of December 31, 2104 (JD
11,238,289 as of December 31, 2013).
64
Provision for Impairment in Direct Credit Facilities
The movement on the provision for impairment in direct credit facilities was as follows:
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Total
For the Year 2014 JD JD JD JD JD
Balance - beginning of the year 19,032,900 1,487,473 71,557,622 12,282,721 104,360,716
Deduction (surplus) for the year
taken from revenue
2,192,855 (512,421) 14,478,662 1,941,222 18,100,318
Used during the year (written-off) (1,500) - (6,974,709) (730,067) (7,706,276)
Transferred to off-consolidated
statement of financial position items
(229,562) (244,398) (21,961,399) (696,341) (23,131,700)
Foreign currencies evaluation
difference
(102,617) - (204,458) (76,809) (383,884)
Balance - end of the year 20,892,076 730,654 56,895,718 12,720,726 91,239,174
Provision for non-performing
facilities on an individual
customer basis
20,623,645 727,246 54,546,477 11,795,031 87,692,399
Provision for under watch facilities
on an individual customer basis
268,431 3,408 2,349,241 925,695 3,546,775
Balance - end of the year 20,892,076 730,654 56,895,718 12,720,726 91,239,174
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Total
For the Year 2013 JD JD JD JD JD
Balance - beginning of the year 22,999,455 1,826,388 62,239,093 12,789,627 99,854,563
Deduction (surplus) for the year
taken from revenue
4,248,215 (335,769) 12,113,555 2,446,129 18,472,130
Used during the year (written-off) (2,543,150) (3,146) (1,251,309) - (3,797,605)
Transferred to off-consolidated
statement of financial position items
(1,131,893) - (327,089) (68,296) (1,527,278)
Classified to assets held for sale (4,554,180) - (1,282,380) (2,890,351) (8,726,911)
Foreign currencies evaluation
difference
14,453 - 65,752 5,612 85,817
Balance - end of the year 19,032,900 1,487,473 71,557,622 12,282,721 104,360,716
Provision for non-performing
facilities on an individual
customer basis
18,895,343 1,475,674 69,633,515 11,964,139 101,968,671
Provision for under watch facilities
on an individual customer basis
137,557 11,799 1,924,107 318,582 2,392,045
Balance - end of the year 19,032,900 1,487,473 71,557,622 12,282,721 104,360,716
65
Suspended Interest
The movement on suspended interest was as follows:
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Total
For the Year 2014 JD JD JD JD JD
Balance - beginning of the year 4,118,073 1,293,154 13,712,020 4,855,532 23,978,779
Add: Interest in suspense for the
year
1,982,693 49,370 5,112,624 1,881,344 9,026,031
(Less): Surplus taken to income (213,473) (147,334) (623,564) (72,154) (1,056,525)
Interest in suspense written-off (258,364) (39,173) (464,239) (1,918,396) (2,680,172)
Transferred to off-consolidated
statement of financial position
items
(52,332) (243,497) (5,508,880) (359,521) (6,164,230)
Translation of foreign currencies (46,510) - (29,687) (483) (76,680)
Balance - end of the year 5,530,087 912,520 12,198,274 4,386,322 23,027,203
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Total
For the Year 2013 JD JD JD JD JD
Balance - beginning of the year 5,979,267 1,476,777 22,317,217 22,500,917 52,274,178
Add: Interest in suspense for the
year
1,410,011 (46,870) 3,694,123 1,042,794 6,100,058
(Less): Surplus taken to income (142,273) (106,131) (1,121,916) (145,814) (1,516,134)
Interest in suspense written-off (311,395) (30,622) (3,404,252) (148,901) (3,895,170)
Transferred to off-consolidated
statement of financial position
items
(239,622) - (1,300,520) (116,798) (1,656,940)
Classified to assets held for sale (2,626,428) - (6,472,785) (18,291,865) (27,391,078)
Translation of foreign currencies 48,513 - 153 15,199 63,865
Balance - end of the year 4,118,073 1,293,154 13,712,020 4,855,532 23,978,779
66
Direct credit facilities are distributed according to geographic location and economic
sector as follows before provisions and suspended interest:
Inside Jordan Outside Jordan December 31, 2014 December 31, 2013
Economic Sector JD JD JD JD
Financial 158,626,095 15,645,726 174,271,821 179,377,083
Industrial 100,368,172 17,455,190 117,823,362 119,818,798
Trade 386,307,228 54,645,030 440,952,258 422,028,263
Real estate 324,564,179 13,170,664 337,734,843 336,018,648
Agricultural 6,780,703 800,860 7,581,563 9,848,440
Shares 11,622,338 - 11,622,338 12,237,964
Individuals 155,816,368 3,063,586 158,879,954 157,699,670
Government and public
sector *
1,592,662 22,169,351 23,762,013 25,872,855
Other 42,633,140 - 42,633,140 53,439,621
1,188,310,885 126,950,407 1,315,261,292 1,316,341,342
* This item includes facilities granted to the Palestinian National Authority amounting approximately to JD 21
million, which has been properly rescheduled under the approval of the Palestinian Monetary Authority.
- Non-performing credit facilities amounted to JD 154,052,354 which is equivalent to 11/71% of total direct credit
facilities as of December 31, 2014 (JD 165,529,937, which is equivalent to 12/58% of total direct credit facilities as of
December 31, 2013).
- Non-performing credit facilities excluding interest and commissions in suspense amounted to JD 131,282,924 which
is equivalent to 10/16% of total direct credit facilities net of interest and commissions in suspense as of December 31,
2014 (JD 141,696,784 which is equivalent to 10/96% of total direct credit facilities net of interest and commissions
in suspense as of December 31, 2013).
- There are no credit facilities granted to and guaranteed by the Government of Jordan as of December 31, 2014
and 2013.
- The balance of non-performing loans transferred to off-consolidated statement of financial position items amounted
to JD 41,138,101 up to December 31, 2014 (JD 32,523,016 up to December 31, 2013). These loans are fully covered
by provisions and interest in suspense.
- According to the Board of Directors’ resolutions, the balance of non-performing debts in addition to its related
interest in suspense of JD 29,528,629 have been written-off during the year 2014 to on- and off-statement of
financial position items (JD 11,322,551 for the year 2013).
- The provisions no longer needed due to settlements or debt repayments and accordingly transferred to other non-
performing debts amounted to JD 13,430,261 as of December 31, 2014 (JD 7,527,855 as of December 31, 2013).
67
9 - Financial Assets at Fair Value Through Other Comprehensive Income
The details of this item are as follows:
December 31
2014 2013
JD JD
Quoted shares 12,872,746 13,638,560
Unquoted shares * 11, 477,174 8,042,061
Mutual fund **
3,241,548 2,292,906
27,591,468 23,973,527
* The fair value for the unquoted shares is determined according to the equity method, which is considered
the best tool available to measure the fair value of these investments and according to the latest financial
information available.
** This item represents investment in Abraj Capital Fund in the amount of 4/5 million US Dollars, which was
stated at fair value as of December 31, 2014. The total fund capital amounted to 2 billion US Dollars; moreover,
the fund capital is not guaranteed.
- Cash dividend distributions for the above-mentioned financial assets amounted to JD 944,249 for the year
ended December 31, 2014 (JD 871,322 for the year ended December 31, 2013).
10 - Financial Assets Measured at Amortized Cost
The details of this item are as follows:
December 31,
2014 2013
JD JD
Treasury bills and bonds 375,252,321 265,432,885
Companies’ bonds and debentures 19,830,559 10,058,405
395,082,880 275,491,290
Less: Impairment provision (625,338) (625,338)
394,457,542 274,865,952
Bonds return analysis:
Fixed return 394,457,542 274,865,952
Total 394,457,542 274,865,952
The maturity dates of financial assets measured at amortized cost are as follows:
2014 2013
JD JD
During a year 100,055,460 126,122,084
From 1 to 3 years 267,313,408 148,038,801
More than 3 years 27,088,674 705,067
394,457,542 274,865,952
68
11 - Investment in Associates and Unconsolidated Subsidiary Company
- The Bank owns shares in several associate companies and an unconsolidated subsidiary
company as of December 31, 2014 and 2013. The details are as follows:
Shareholders’ Equity
Country
of
Establishment
Ownership
Percentage
December 31
Nature
of
Business
Bank’s
Share
of
Profit
Calculation
Method
Acquisition
Date
%
2014
JD
2013
JD
%
Tourist Resorts
and Hotels Beach
Company *
Jordan 24.815 7,813,320 7,730,140
Hotel
services
24.815 Equity 2006
Ahluna for Social
and Cultural Work
Company **
Jordan 100 1,561,322 1,561,322 Charity 100 Equity 2006
Middle East Payment
Services Company ***
Jordan 19.767 - 1,013,268
Financial
services
19.767 Equity 2009
9,374,642 10,304,730
* The Bank’s participation in the Tourist Resorts and Hotels Beach Company resulted from the merger of the
National Real Estate Investments Company, which was wholly owned by the Bank, with the Tourist Resorts
and Hotels Beach Company (related company). The book value of the land owned by the National Real
Estate Investments Company has been adopted for merger purposes according to the approval of the General
Assembly of the two merged companies. Consequently, the merger resulted in reducing the Bank’s share to 46%
of the owners’ equity of Tourist Resorts and Hotels Beach Company with a capital of JD 10 million after the
merger. During the year 2007, the Company’s capital was increased through subscriptions of the old partners
and entrance of new partners at the nominal value of JD 1 per share. Consequently, paid-up capital became
JD 18 million. Thus, the Bank’s participation in the Company decreased to 25/55% of paid-up capital. During
the first half of the year 2011, the Company’s capital was increased to become JD 20 million; consequently the
Bank’s share in the Company was decreased to become 23% from the paid-up capital. During the second half
of the year 2011, the Company’s capital was increased to become JD 27 million. The Bank’s contribution in this
increase amounted to JD 2.1 million, thus the Bank’s contribution share in the Company became 24/8%.
** According to the resolution of Ahluna for Social and Cultural Work Company partners (associated company)
in their meeting held on May 21, 2012, all partners have agreed to withdraw from their contribution in the
Company except for Jordan Ahli Bank. Therefore, the Bank became the only owner of the company. The
Ministry of Industry and Trade’s approval has been obtained on March 28, 2013. Moreover, the investment in
the Company is presented according to the equity method as of December 31, 2013. Noting that the financial
statements of the company have not been consolidated since it is a not-for-profit organization, in which all its
work is charitable and the entire net revenue is donated.
*** During the second quarter of the year 2014 the investments of the associate company (Middle East Payment
Services Company) were re-classified to financial assets at fair value through comprehensive income. This was
a result of the loss of the Bank’s effective influence (reduction of the ownership percentage 20%) of entering
a strategic partner at the price of JD 1.5 per share, which represents the price that the strategic partner paid
in order to increase the capital, and the result was that the JD 1,536,732 unrealized prots were taken to the
consolidated income statement in accordance to the IAS No. (28).
69
The following is a summary of the movement on investments in associated companies and
the unconsolidated subsidiary company:
2014
JD
2013
JD
Balance - beginning of the year 10,304,730 11,269,321
Disposals (1,013,268) (300,000)
Bank’s share from investing in associated companies’ gains 83,180 311,474
Classified to assets held for sale - (976,065)
Balance - end of the year 9,374,642 10,304,730
- The Bank’s voting rights in the General Assembly decisions for these companies is according to its ownership
percentage in each company.
70
12 - Properties, Equipment and Projects Under Construction - Net
The details of this item are as follows:
For the Year Ended December 31, 2014
Land Buildings
Furniture,
Fixtures and
Equipment
Vehicles Computers Other Total
JD JD JD JD JD JD JD
Cost:
Balance - beginning of the year 10,339,303 27,193,518 29,233,457 768,135 13,947,961 6,415,248 87,897,622
Additions - 14,900 3,095,541 239,366 3,109,553 683,298 7,142,658
Disposals - - (147,506) - (51,158) (75,929) (274,593)
Conversions 816,000 - - - - (816,000) -
Disposals belonging to the sold subsidiary (180,261) (613,778) (779,207) - - - (1,573,246)
Balance - end of the year 10,975,042 26,594,640 31,402,285 1,007,501 17,006,356 6,206,617 93,192,441
Accumulated depreciation:
Balance - beginning of the year - 6,884,659 22,633,056 589,555 11,946,769 2,929,388 44,983,427
Additions - 492,645 2,344,385 67, 378 1,194,778 724,334 4,823,520
Disposals - - (118,461) - (50,165) - (168,626)
Disposals belonging to the sold subsidiary - (252,724) (747,366) - - - (1,000,090)
Balance - end of the year - 7,124,580 24,111,614 656,933 13,091,382 3,653,722 48,638,231
Net book value for property and equipment 10,975,042 19,470,060 7,290,671 350,568 3,914,974 2,552,895 44,554,210
Down payments for projects under construction - - 331,862 - 13,807,971 - 14,139,833
Balance - end of the year 10,975,042 19,470,060 7,622,533 350,568 17,722,945 2,552,895 58,694,043
For the Year Ended December 31, 2013
Land Buildings
Furniture,
Fixtures and
Equipment
Vehicles Computers Other Total
JD JD JD JD JD JD JD
Cost:
Balance - beginning of the year 10,339,303 34,345,375 32,503,671 838,373 14,926,440 6,038,935 98,992,097
Additions - 1,386,634 1,959,574 71,409 541,304 376,313 4,335,234
Disposals - - (604,449) (31,195) (114,798) - (750,442)
Classified to assets held for sale - (8,538,491) (4,625,339) (110,452) (1,404,985) - (14,679,267)
Balance - end of the year 10,339,303 27,193,518 29,233,457 768,135 13,947,961 6,415,248 87,897,622
Accumulated depreciation:
Balance - beginning of the year - 8,895,736 24,237,099 655,406 11,951,912 2,127,964 47,868,117
Additions - 468,972 2,381,820 53,229 1,233,006 801,424 4,938,451
Disposals - - (148,069) (21,318) (101,277) - (270,664)
Classified to assets held for sale - (2,480,049) (3,837,794) (97,762) (1,136,872) - (7,552,477)
Balance - end of the year - 6,884,659 22,633,056 589,555 11,946,769 2,929,388 44,983,427
Net book value for property and equipment 10,339,303 20,308,859 6,600,401 178,580 2,001,192 3,485,860 42,914,195
Down payments for projects under construction - - 1,041,331 - 10,058,234 - 11,099,565
Balance - end of the year 10,339,303 20,308,859 7,641,732 178,580 12,059,426 3,485,860 54,013,760
Annual depreciation rate % - 2 10-20 15 20-30 15-20
Properties and equipment include fully depreciated assets which amount to JD 26,140,352 as of December 31,
2014 (JD 21,598,789 as of December 31, 2013).
71
13 - Intangible Assets - Net
The details of this item are as follows:
2014
Computer Software and
Applications
Goodwill Total
Description JD JD JD
Balance - beginning of the year 1,777,341 - 1,777,341
Additions 2,579,921 - 2,579,921
Amortization for the year (2,881,445) - (2,881,445)
Balance - end of the year 1,475,817 - 1,475,817
Annual amortization rate % 20 - 30 -
2013
Computer Software and
Applications
Goodwill Total
Description JD JD JD
Balance - beginning of the year 2,040,438 1,418,000 3,458,438
Additions 1,772,303 - 1,772,303
Classified to assets held for sale (64,546) (1,418,000) (1,482,546)
Amortization for the year (1,970,854) - (1,970,854)
Balance - end of the year 1,777,341 - 1,777,341
Annual amortization rate % 20 - 30 -
72
14 - Other Assets
The details of this item are as follows:
December 31
2014 2013
JD JD
Real estate foreclosed by the Bank against debts * 75,727,167 68,646,822
Accrued interest and commissions 6,877,226 5,231,981
Checks and transfers under collection 4,700,337 5,078,247
Foreclosed assets sold - net ** 5,657,958 3,871,105
Prepaid expenses 2,268,867 2,117,151
Various debtors 2,446,266 1,878,035
Real estate for sale 3,248,621 3,207,091
Prepaid rent 1,945,792 1,726,245
Receivables - disposal of a subsidiary *** 1,100,000 -
Refundable deposits **** 217,624 647,902
Incoming stamps 169,393 197,626
Advances to employees 46,847 41,847
Temporary advances 4,816,290 2,210,667
Other debit balances 1,173,874 661,589
110,396,262 95,516,308
73
* The movement on foreclosed assets was as follows:
Foreclosed Real Estate
2014 2013
Description JD JD
Balance - beginning of the year 68,646,822 60,885,267
Additions 15,038,159 13,047,872
Disposals (6,404,737) (3,928,221)
Classified to assets held for sale - (991,724)
Impairment loss (1,553,077) (366,372)
Balance - end of the year 75,727,167 68,646,822
- According to the Banks’ Law, buildings and plots of land foreclosed by the Bank against debts due from
customers should be sold within two years from the ownership date. For exceptional cases, the Central Bank of
Jordan may extend this period for two additional years.
** During the year 2011, the Bank sold Land number (879) basin number (3) qatna south and land number
(418) basin number (3) qatna south from the village of Amman in installments for JD 4.4 million to the South
House Trade and Investment Company. An amount of JD 3.4 million has been received during the year 2012.
Moreover, during the year 2013, a provision of JD one million has been booked for the entire balance since the
amount is considered a doubtful debt.
*** On December 29, 2014 an agreement for selling the Bank’s contribution in Al Zarqa Community College
Company with AlQuds Company for Learning, Training and Consulting was signed, including the Bank’s
share in the Company’s capital which is 100%, and the investment was excluded on June 30, 2014 as shown in
disclosure (46-B).
**** This item represents cash deposits in a foreign trading and financial brokerage company, which is under
liquidation, and is currently restricted until the liquidation procedures are finalized. A provision was booked
for an amount of JD 202,847 as of December 31, 2014 (JD 489,986, which is stated at net realizable value less
impairment provision with an amount of JD 210 thousand as of December 31, 2013).
74
15 - Banks’ and Financial Institutions’ Deposits
The details of this item are as follows:
December 31, 2014 December 31, 2013
Inside Outside
Total
Inside Outside
Total
Jordan Jordan Jordan Jordan
JD JD JD JD JD JD
Current accounts and
demand deposits
649,385 9,787,682 10,437,067 1,519,833 13,393,063 14,912,896
Time deposits 59,631,936 59,291,840 118,923,776 43,686,483 62,085,943 105,772,426
Total 60,281,321 69,079,522 129,360,843 45,206,316 75,479,006 120,685,322
- Banks’ and financial institutions’ deposits include an amount of JD 1,312,540 as of December 31, 2014 (JD 14,250,539 as of
December 31, 2013) which mature within a period exceeding three months.
16 - Customers’ Deposits
The details of this item are as follows:
For the Year Ended December 31, 2014
Individuals Corporates
Small and
Medium
Companies
Government
and Public
Sector
Total
JD JD JD JD JD
Current accounts and
demand deposits
248,328,771 130,367,541 107,680,314 11,489,693 497,866,319
Savings accounts 187,904,294 2,821,568 15,517,247 470 206,243,579
Time and notice deposits 531,148,815 140,423,401 126,550,889 20,094,218 818,217,323
Koshan certificates of deposit 777,593 - - - 777,593
968,159,473 273,612,510 249,748,450 31,584,381 1,523,104,814
For the Year Ended December 31, 2013
Individuals Corporates
Small and
Medium
Companies
Government
and Public
Sector
Total
JD JD JD JD JD
Current accounts and
demand deposits
245,116,275 94,448,332 104,628,338 5,350,891 449,543,836
Savings accounts 152,610,731 6,236,836 17,502,382 - 176,349,949
Time and notice deposits 513,460,393 139,640,051 125,724,902 55,631,834 834,457,180
Koshan certificates of deposit 843,408 - - - 843,408
912,030,807 240,325,219 247,855,622 60,982,725 1,461,194,373
75
- Government and public sector deposits inside Jordan amounted to JD 31,522,515 which is equivalent to 2/07%
of total deposits as of December 31, 2014 (JD 60,936,114, which is equivalent to 4/17% of total deposits as of
December 31, 2013).
- Non-interest bearing deposits amounted to JD 449,101,272 which is equivalent to 29/49% of total deposits as of
December 31, 2014 (JD 381,483,684, which is equivalent to 26/11% as of December 31, 2013).
- Restricted deposits amounted to JD 543,729 which is equivalent to 0/04% of total deposits as of December 31,
2014 (JD 907,167 which is equivalent to 0/06% as of December 31, 2013).
- Dormant accounts amounted to JD 36,251,286 as of December 31, 2014 (JD 38,108,662 as of December 31, 2013).
- Restricted fund deposits amounted to JD 682,617 which is equivalent to 0/04% of total deposits as of December 31,
2014 (JD 763,495 which is equivalent to 0/05% as of December 31, 2013).
17 - Cash Margins
The details of this item are as follows:
December 31
2014 2013
JD JD
Cash margins on direct credit facilities 215,905,937 193,906,541
Cash margins on indirect credit facilities 45,070,393 48,080,840
Marginal deposits 4,935,058 4,440,408
Other margins 15,866,406 10,960,865
281,777,794 257,388,654
76
18 - Borrowed Funds
The details of this item are as follows:
Amount
Number of
Installments
Total
Installments
Maturity
Frequency
Remaining
Installments
Maturity Frequency
Interest
Rate
Guarantees
Interest
Rate
Relending
Interest
Rate
December 31, 2014 JD %
Central Bank of Jordan 4,000,000 30 27
Semi-annual
installments
- 2/5 -
Central Bank of Jordan 1,350,000 20 20
Semi-annual
installments
- 2/5 -
Local Bank (Loan to a
subsidiary)
8,749,964 24 -
24 monthly installments
effective from the
withdrawal date
10 million
deposit
relating to
Jordan Ahli
Bank
4/2 -
Jordan Mortgage
Refinance Company
(Loan to a subsidiary)
15,000,000 4 4
February 11, 2015, July
1, 2015, May 11, 2016,
and April 20, 2016
- 7/75-5/6 -
Local Bank (Loan to a
subsidiary)
4,013,168 24 -
24 monthly installments
effective from the
withdrawal date
- 7/5-7 -
Development and
Employment Fund
(Loan to a subsidiary)
1,470,833 30 -
30 monthly installments
effective from the
withdrawal date after
the allowed period of
six months
- 6-7 6-7
34,583,965
December 31, 2013
Central Bank of Jordan 4,000,000 30 29
Semi-annual
installments
- 2/5 -
Local Bank (Loan to a
subsidiary)
12,155,504 24 -
24 monthly installments
effective from the
withdrawal date
10 million
deposit
relating to
Jordan Ahli
Bank
4/5 -
Jordan Mortgage
Refinance Company
(Loan to a subsidiary)
7,500,000 2 2
April 29, 2014 and June
3, 2015
- 7/25 -
Local Bank (Loan to a
subsidiary)
912,550 24 -
24 monthly installments
effective from the
withdrawal date
- 7/5 -
Development and
Employment Fund
(Loan to a subsidiary)
1,968,056 30 -
30 monthly installments
effective from the
withdrawal date after
the allowed period of
six months
- 6-7 6-7
26,536,110
- Loans with a fixed interest rate amounted to JD 34,583,965 as of December 31, 2014 (JD 26,536,110 as of
December 31, 2013).
77
19 - Various Provisions
The details of this item are as follows:
Balance -
Beginning
of the Year
Additions Disposals
Classified to
Liabilities Directly
Associated with
Assets Classified as
Held for Sale
Balance -
End of the
Year
Year 2014 JD JD JD JD JD
Provision for end-of-service
indemnity
2,759,501 2,461,860 (2,032,969) - 3,188,392
Provision for the decline in
foreign currencies
121,185 126,463 - - 247,648
Provision for legal claims 330,488 - (51,500) - 278,988
Other provisions 164,734 405,662 - - 570,396
3,375,908 2,993,985 (2,084,469) - 4,285,424
Year 2013
Provision for end-of-service
indemnity
3,867,401 588,330 (379,348) (1,316,882) 2,759,501
Provision for the decline in
foreign currencies
13,639 121,185 - (13,639) 121,185
Provision for legal claims 1,033,354 100,000 (802,866) - 330,488
Other provisions 145,046 31,095 (11,407) - 164,734
5,059,440 840,610 (1,193,621) (1,330,521) 3,375,908
20 - Provision for Income Tax
A- Income tax provision:
The movement on the provision for income tax was as follows:
2014 2013
JD JD
Balance - beginning of the year 6,948,876 9,176,344
Income tax paid (11,285,403) (9,187,590)
Income tax for the year 6,210,279 7,582,078
Income tax for selling the Bank’s contribution in subsidiary companies (Note 46) 7,986,598 -
Classified to liabilities directly associated with assets classified as held for sale - (621,956)
Balance - end of the year 9,860,350 6,948,876
Income tax expense for the year which appears in the consolidated statement of income
consists of the following:
2014 2013
JD JD
Accrued income tax on the year’s profit 6,210,279 7,582,078
Deferred tax assets for the year (1,852,516) (724,809)
Amortization of deferred tax assets 1,606,617 483,549
Balance - end of the year 5,964,380 7,340,818
78
- The income tax rate for banks in Jordan is 30%; moreover, the income tax rates in the countries where the Bank
has investments or branches in ranges from 10% to 33/79%.
- A final settlement was reached with the Income and Sales Tax Department up to the year 2010 for the Jordan
branches. An income tax return was filed for the Bank’s Jordan branches for the year 2011, were the files were
reviewed by the Income and Sales Tax Department. They were rejected due to a difference amounting to JD
1.5 million, and were transferred to court. An Income tax return was filed for the Bank’s Jordan branches for
the years 2012 and 2013. The files were reviewed by the Income and Sales Tax Department and no decision
has been issued yet.
- A final settlement with the Income Tax and Value-Added Tax Department has been reached for the Palestine
Branches up to the end of the year 2012.
- A final tax settlement has been reached for the Bank’s branch in Cyprus up to the year 2009.
- A final settlement for income tax for the subsidiary companies (Al Ahli Brokerage Company, Ahli Financial Leasing
Company, and Ahli Micro Finance Company) for the end of the year 2011. Moreover, the company filed an income tax
return for the years 2012 and 2013, and the Income and Sales Tax Department has not reviewed the files yet.
- A provision for income tax for the year ended December 31, 2014 has been booked for the Bank, its branches abroad,
and subsidiary companies. In the opinion of management and the Bank’s tax advisor, the provision taken in the
consolidated financial statements as of December 31, 2014 is adequate for meeting the expected tax liabilities.
- Deferred tax assets and liabilities have been calculated as of December 31, 2014 and
2013 according to the following rates:
December 31
Income Tax Rate 2014 2013
Jordan branches 35% 30%
Palestine branches 33/79% 33/79%
-
The Deferred Tax assets and liabilities for the Jordan branches has been calculated at 35% as of December 31,
2014 instead of 30% as of December 31, 2013 and this is according to the income tax percentage on the banks
according to the Income Tax Law no. 34 for the year 2014, which is valid from January 1, 2015. The adjustment
resulted in a difference in the value of the deferred tax asset in an amount of JD 360,546 as a reduction of the
income tax expense and a difference in the value of the deferred tax liabilities in an amount of JD 105,919 as a
reduction of the fair value reserve for the financial assets through other comprehensive income which is shown
in the owners’ equity.
The movement on the deferred tax assets/liabilities account is as follows:
2014 2013
Assets Liabilities Assets Liabilities
JD JD JD JD
Balance - beginning of the year 4,397,862 635,514 4,156,602 658,596
Additions 1,852,516 351,498 724,809 -
Amortized (1,606,617) - (483,549) (23,082)
Balance - end of the year 4,643,761 987,012 4,397,862 635,514
79
B - Deferred Tax Assets/Liabilities:
The details of this item are as follows:
2014
Balance -
Beginning
of the Year
Additions
Amounts
Released
Balance -
End of the
Year
Deferred
Tax
Included Accounts JD JD JD JD JD
a. Deferred tax assets
Prior years’ provision for non-performing loans 5,369,826 64,769 (2,380,725) 3,053,870 1,039,413
Interest in suspense 2,350,943 22,014 (101,503) 2,271,454 767, 615
Impairment loss in real estate 2,355,304 1,553,077 (69,941) 3,838,440 1,343,455
Provision for lawsuits 330,488 - (51,500) 278,988 97,002
Provision for end-of-service indemnity 2,670,214 2,418,021 (1,992,856) 3,095,379 1,058,485
Provision for the decline in foreign currencies 121,185 126,463 - 247,648 86,677
Impairment of financial assets measured at
amortized cost
625,338 - - 625,338 218,868
Other provisions - 95,424 - 95,424 32,246
13,823,298 4,279,768 (4,596,525) 13,506,541 4,643,761
b. Deferred tax liabilities *
Fair value reserves for financial assets
at fair value through other comprehensive income
2,118,380 701,653 - 2,820,033 987,012
2,118,380 701,653 - 2,820,033 987,012
2013
Beginning
Balance
Additions
Amounts
Released
Year - End
Balance
Deferred
Tax
Included accounts JD JD JD JD JD
a. Deferred tax assets
Prior years’ provision for non-performing loans
5,538,372 1,288 (169,834) 5,369,826 1,703,339
Interest in suspense
2,320,971 42,126 (12,154) 2,350,943 794,478
Impairment loss in real estate
1,199,508 1,379,309 (223,513) 2,355,304 706,591
Provision for lawsuits
1,033,354 100,000 (802,866) 330,488 101,170
Provision for end-of-service indemnity
2,475,265 574,296 (379,347) 2,670,214 868,327
Provision for the decline in foreign currencies
- 121,185 - 121,185 36,356
Provision for impairment of financial assets
measured at amortized cost
625,338 - - 625,338 187,601
Other provisions
11,407 - (11,407) - -
13,204,215 2,218,204 (1,599,121) 13,823,298 4,397,862
b. Deferred tax liabilities *
Fair value reserves for financial assets at fair value
through other comprehensive income
2,195,318 - (76,938) 2,118,380 635,514
2,195,318 - (76,938) 2,118,380 635,514
* Deferred tax liabilities include JD 987,012 as of December 31, 2014 (JD 635,514 as of December 31, 2013) resulting
from changes in the fair value of financial assets at fair value through other comprehensive income which is stated net
of deferred tax liabilities within the fair value reserve under owners’ equity.
80
C- Summary Of The Reconciliation Between Accounting Income With Taxable Income:
2014 2013
JD JD
Accounting income 48,465,490 23,344,707
Tax exempted income (8,037,989) (4,027,943)
Non-deductible expenses 12,667,103 9,268,111
Taxable income 53,094,604 28,584,875
21 - Other Liabilities
The details of this item are as follows:
December 31
2014 2013
JD JD
Accepted checks and transfers 10,852,328 6,789,747
Accounts payable for financial brokerage
customers
878,930 1,032,433
Accrued interest 5,377,326 5,795,894
Temporary deposits 7,359,976 6,396,273
Various creditors 3,387,395 3,492,165
Accrued expenses * 2,506,432 986,216
Interest and commissions received in advance 238,063 581,358
Checks and transfers - delayed in payment 1,373,609 1,220,139
Provision for technical and vocational
education and training support fund fees
157,255 157,255
Board of Directors’ remuneration 73,871 68,253
Unearned revenue 74,398 81,620
Other liabilities 81,657 82,581
32,361,240 26,683,934
* This item includes an amount of JD 1.48 million as incentives for employees according to the Board of Directors’ decision.
81
22 - Capital and Share Premium
- The Bank’s authorized capital amounted to JD 175 million divided into 175 million shares of JD 1 each as of
December 31, 2014 (JD 165 million as of December 31, 2013).
- The General Assembly resolved in its extraordinary meeting held on April 27, 2014 to distribute 6% of the capital
as cash dividends as of December 31, 2013 which is equivalent to JD 9.9 million and to distribute stocks of 6.06%
from the paid-up capital as of that date from share premium and retained earning which is equivalent to JD 10
million to the shareholders as profit for the year 2013.
- According to the resolution of the General Assembly of Shareholders in its extraordinary meeting held on
April 29, 2013, 10% of capital equivalent to JD 15 million were approved for distribution as a stock dividends
to shareholders for the year 2012.
23 - Reserves
The details of reserves as of December 31, 2014 and 2013 are as follows:
A- Statutory reserve:
The accumulated balances in this account represent appropriations from net income before tax at 10% during the
year and previous years according to the Banks’ Law and the Companies’ Law. This reserve cannot be distributed to
shareholders.
B- Voluntary reserve:
The accumulated balances in this account represent appropriations from net income before tax at a maximum of
20% during the year and previous years. The voluntary reserve can be used for the purposes decided by the Board of
Directors. Moreover, the General Assembly of Shareholders has the right to distribute it as dividends to shareholders in
part or in full.
C- General banking risks reserve:
This item represents the general banking risks reserve according to the Central Bank of Jordan’s instructions.
D- Periodic fluctuations reserve:
This reserve represents the periodic fluctuations reserve calculated according to the Palestinian Monetary Authority’s
Instructions no. 1 for the year 2011 concerning all banks operating in Palestine on January 27, 2010. Moreover, the
periodic fluctuations reserve is calculated at 15% of the net profit after tax. Additionally, the Bank continues to make
this annual deduction provided that this reserve balance does not exceed 20% of paid-up capital. The reserve cannot
be used for any purpose unless a prior written approval is obtained from the Palestinian Monetary Authority.
The restricted reserves are as follows :
December 31
Reserve 2014 2013 Restriction Nature
JD JD
General banking risks reserve 11,005,325 11,147,743 According to the Central Bank of Jordan Instructions
Statutory reserve 47,947,694 43,935,175 According to Bank’s and Companies’ Laws
Periodic fluctuations reserve 1,791,584 1,393,405 According to the Palestinian Monetary Authority Instructions
82
24 - Fair Value Reserve - Net
The details of this item are as follows:
December 31
2014 2013
JD JD
Balance - beginning of the year 1,479,320 1,526,086
Sold shares 162,972 50
Deferred tax liabilities (351,498) 23,082
Net unrealized income (losses) transferred to the
consolidated statement of comprehensive income
542,226 (69,898)
Balance - end of the year 1,833,020 1,479,320
* Fair value reserve is stated net of the deferred tax liabilities JD 987,012 as of December 31, 2014 (JD 635,514 as of
December 31, 2013).
25 - Retained Earnings
The details of this item are as follows:
December 31
2014 2013
JD JD
Balance - beginning of the year 25,546,667 26,468,886
Income for the year 34,160,812 16,003,889
Distributed dividends * (9,900,000) (15,000,000)
Transfers to reserves (8,280,799) (1,926,058)
Transfers to increase capital (654,183) -
(Loss) from sale of financial assets at fair value
through other comprehensive income
(77,022) (50)
Balance - end of the year 40,795,475 25,546,667
- Retained earnings include an amount of JD 4,643,761 restricted by the Central Bank of Jordan against deferred
tax assets as of December 31, 2014 (JD 4,397,862 as of December 31, 2013).
* The Board of Directors recommend to the Bank’s General Assembly to distribute 10% of the Bank’s paid-up
Capital at the date of the ordinary General Assembly meeting as cash dividends to the Shareholders for the year
2014. Such distribution is subject to the approval of the Central Bank of Jordan and the General Assembly of
Shareholders. Moreover, profits of 6% were distributed to shareholders during the last year as cash dividends
and 6/06% as stock dividends.
83
26 - Interest Income
The details of this item are as follows
2014 2013
JD JD
Direct credit facilities:
Individuals (Retail):
Current accounts 849,684 540,928
Loans and promissory notes 29,394,714 28,225,630
Credit cards 2,219,667 2,278,352
Real Estate loans
12,515,296 11,010,526
Companies:
Corporates:
Current accounts 7,046,009 8,749,139
Loans and promissory notes 31,958,732 32,680,193
Small and Medium Companies:
Current accounts 4,236,448 4,768,373
Loans and promissory notes 15,811,728 12,234,764
Government and Public Sector
2,071,116 1,951,558
Balances at central banks 3,177,526 2,143,610
Balances and deposits at banks and financial institutions 1,765,921 2,750,132
Financial assets measured at amortized cost 17,842,703 15,680,917
128,889,544 123,014,122
27 - Interest Expense
The details of this item are as follows:
2014 2013
JD JD
Banks’ and financial institutions’ deposits
1,656,870 2,125,331
Customers’ deposits:
Current and demand deposits 268,299 130,471
Savings accounts 303,788 395,512
Time and notice deposits 32,568,358 32,291,298
Cash margins 6,985,498 5,812,320
Borrowed funds 1,692,773 2,139,727
Loan guarantee fees 3,003,566 2,249,241
46,479,152 45,143,900
84
28 - Commissions Revenue - Net
The details of this item are as follows:
2014 2013
JD JD
Credit commissions:
Direct credit facilities 6,023,374 5,432,848
Indirect credit facilities 5,786,745 5,464,126
Other commissions 8,883,743 7,569,955
(Less): Commissions paid (624,702) (575,005)
Net commissions revenue 20,069,160 17,891,924
29 - Foreign Exchange Income
The details of this item are as follows:
2014 2013
JD JD
As a result of trading 773,443 743,191
As a result of evaluation 2,113,831 2,155,068
2,887,274 2,898,259
30 - (Loss) from Financial Assets at Fair Value Through Profit or Loss
The details of this item are as follows:
Realized Profit
(Loss)
Unrealized (Loss) Dividends Total
2014 JD JD JD JD
Companies’ shares (303,159) (86,840) - (389,999)
(303,159) (86,840) - (389,999)
2013
Companies’ shares 9,932 (450,533) - (440,601)
9,932 (450,533) - (440,601)
85
31 - Other Revenue
The details of this item are as follows:
2014 2013
JD JD
Interest in suspense recovered * 1,267,473 1,542,873
Brokerage commission income 173,589 126,739
Income from sale of properties and equipment 40,058 38,582
Income from sale of foreclosed assets 109,011 321,510
Recovery of debts previously written-off ** 1,750,486 576,842
Income from managing investment portfolios 446 527
Income from check books 183,249 201,075
Rental income of Bank’s real estate 197,367 225,423
Rental income of safe deposit boxes 164,667 136,478
Income from cash boxes differences 11,292 14,625
Income from student fees - 611,519
Other 481,242 605,614
4,378,880 4,401,807
* The following are the details of recovered interest in suspense:
2014 2013
JD JD
Recovered interest in suspense 1,056,525 1,516,134
Interest in suspense from debts written-off 210,948 26,739
1,267,473 1,542,873
** This account represents the recovered amounts from debts for which full provision has been taken in previous years.
86
32 - Employees’ Expenses
The details of this item are as follows:
2014 2013
JD JD
Salaries, bonuses and employees’ benefits 30,449,331 26,939,309
Bank’s contribution to social security 2,554,380 2,245,642
Bank’s contribution to staff provident fund 1,628,553 1,506,776
Medical Expenses 1,366,049 1,260,360
End-of-service indemnity 2,461,860 588,330
Employees’ training 369,700 291,693
Travel expenses 196,541 187,259
Employees’ life insurance 125,388 100,564
Employees’ meals 154,497 125,503
Employees’ uniforms 17,598 16,959
39,323,897 33,262,395
87
33 - Other Expenses
The details of this item are as follows:
2014 2013
JD JD
Fees and subscriptions 3,279,997 2,751,313
Maintenance and repair 4,736,532 3,759,365
Advertisement and commercial 3,677,770 3,394,885
Printing and stationery 1,153,744 1,108,264
Rent and key money 2,258,825 2,059,784
Studies, research and consulting 210,368 243,417
Insurance expenses 1,535,327 1,336,176
Water, electricity and heating 1,958,524 1,874,966
Legal fees 1,177,493 1,168,299
Donations 372,082 598,330
Transportation 993,585 899,184
Telecommunication 746,266 1,263,742
Miscellaneous 302,575 646,258
General assembly meeting 57,882 58,226
Security 416,850 324,768
Professional fees 318,545 357,395
Stamps fees 183,778 194,157
Entertainment 38,566 43,434
Appraisal expenses of land and real estate 42,141 38,135
Cash boxes difference 4,589 4,787
Lawsuits provision expenses - 100,000
Loss on real estate sales 40,443 317,605
Provision for doubtful debts on sale of foreclosed assets (Note 14) - 1,000,000
Sold foreclosed assets impairment losses - 12,938
Board of Directors’ remunerations 65,000 65,000
23,570,882 23,620,428
88
34 - Earnings Per Share for Bank’s Shareholders
The details of this items are as follows:
2014 2013
From continuing operations:
JD JD
Income for the year - List (B) 15,702,349 13,532,959
Weighted average number of shares 175,000,000 175,000,000
Earnings per share - Bank’s shareholders:
Basic and diluted -/090 -/077
From discontinued operations:
Income for the year - List (B) 18,458,463 2,470,930
Weighted average number of shares 175,000,000 175,000,000
Earnings per share - Bank’s shareholders:
Basic and diluted -/105 -/014
Total
-/195 -/091
The comparative figures have been recalculated according to the average capital after the stock dividends distribution/
capitalization according to the requirements of the International Accounting Standard no. 33.
35 - Cash and Cash Equivalents
The details of this items are as follows:
2014 2013
JD JD
Cash and balances at central banks maturing within 3 months 310,339,062 249,144,081
Add: Balances at banks and financial institutions due within 3 months 206,787,496 207,872,141
Less: Banks’ and financial institutions’ deposits due within 3 months (128,048,303) (106,434,783)
Restricted balances (10,120,200) (311,336)
378,958,055 350,270,103
89
36 - Related Party Balances and Transactions
A- The consolidated financial statements include the financial statements of the Bank
and the following subsidiaries companies:
Company Capital
Equity Ratio 2014 2013
Company Name % JD JD
Ahli Micro Finance Company 100 3,500,000 3,500,000
Ahli Financial Leasing Company 100 10,000,000 10,000,000
Ahli Financial Brokerage Company 100 15,000,000 15,000,000
The Bank entered into transactions with sister companies, major shareholders, Board of Directors and executive
management within the normal banking practice according to the commercial interest and commission rates.
Related Party Total
Associates
Board of
Directors’
Members
Executive
Management
Assets
Held
for
Sale
Other *
December
31,
2014
On - Consolidated Statement
of Financial Position Items:
JD JD JD JD JD JD
Credit facilities 498,395 8,363,252 4,538,562 - 83,595,155 96,995,364
Customers’ deposits 15,775,249 4,609,421 3,901,051 - 21,694,079 45,979,800
Cash margins 857,464 4,500 127,357 - 3,105,257 4,094,578
Off-Consolidated Statement of
Financial Position Items:
Letters of guarantee 50,000 90,000 - - 6,125,587 6,265,587
Consolidated Statement of Income:
Interest and commissions income 32,771 315,313 253,700 - 6,503,377 7,105,161
Interest and commissions expense 463,764 1,457,662 175,388 - 841,465 2,938,279
Related Party Total
Associates
Board of
Directors’
Members
Executive
Management
Assets
held
for sale
Other *
December
31,
2013
On - Consolidated Statement
of Financial Position Items:
JD JD JD JD JD JD
Credit facilities 709,373 8,240,426 4,309,182 - 71,226,877 84,485,858
Customers’ deposits 7,901,384 39,073,773 4,617,760 8,218,468 19,485,214 79,296,599
Cash margins 892,542 20,250 68,764 - 2,643,097 3,624,653
Off-Consolidated Statement of
Financial Position Items:
Letters of guarantee 123,506 405,000 9,500 - 6,403,402 6,941,408
Consolidated statement of income:
Interest and commissions income 95,637 575,628 211,086 213,042 5,498,501 6,593,894
Interest and commissions expense 494,056 1,934,119 230,719 - 567,331 3,226,225
90
* This item represents companies partially owned by members of the Bank’s Board of Directors, Board of Directors’
relatives and Bank employees.
- There are accounts receivable from a subsidiary company (Ahli Brokerage Company) that amounted to JD 2,558,736
which belong to a related party as of December 31, 2014. On October 31, 2013, the company signed a settlement
with those clients to settle the obligation by paying an advance payment upon signing the settlement and monthly
installments thereafter; in addition to reinforcing their guarantees.
- Interest income prices vary between 4.5% and 9/25%.
- Interest expense prices vary between 0% and 5/5%.
B- The salaries of executive management of the Bank and its subsidiaries amounted to
JD 6,132,348 for the year 2014 (JD 4,397,516 for the year 2013), in addition to bonuses
and incentives associated with productivity.
91
37 - Financial Instruments That Do Not Appear at Fair Value in the Consolidated Financial
Statements
There are no significant differences between the carrying value and fair value of financial assets and financial
liabilities at the end of the years 2014 and 2013.
38 - Risk Management
The Bank’s risk management conducts its activities (identification, measurement, management, monitoring,
and controlling) through applying the best international practices in connection with risk management,
administrative organization and risk management’s tools in accordance with the size of the Bank, its activities,
and types of risks to which it is exposed.
The organizational structure of the Bank is integrated by risk management control according to each level. Moreover,
the Corporate Governance Committee, at the Board of Directors’ level, decides on the Bank’s risk policy and strategy
and ensures the management of risk. This is to ensure setting up and controlling the policies and instructions at an
appropriate level for the types of risks
to which
the Bank is exposed until the achievement of the acceptable return for
the shareholders without impacting the Bank’s financial strength. In this context, the work of the Risk Management
Department is complemented by the work of the committees of executive management such as the Assets and Liabilities
Committee and the Credit Facilities’ Committee.
(38/A) Credit Risk
The Bank’s operations involve the Bank’s exposure to many risks such as credit risk relating to the default or inability
of the other party to the financial instrument to settle its obligations towards the Bank which causes losses. An
important duty of the Bank and its management is to ensure that these risks do not go beyond the general framework
predetermined in the Bank’s credit policy and maintain their levels within a balanced relationship among risk, return
and liquidity.
Credit management at the Bank is conducted by several committees from higher management and executive
management. Moreover, credit facilities’ ceilings that can be granted to one client (individual or corporate) or related
parties are specified in compliance with the ratios approved by the Central Bank of Jordan, while relying on the credit
facilities’ distribution method to each credit manager and sector. This is performed by taking into consideration the
geographic area in a manner that achieves congruence among risks, returns and the optimal utilization of the available
resources and the enhancement of the Bank’s ability to diversify lending and allocate it to customers and economic sectors.
The Bank monitors credit risks by periodically evaluating the standing credit of the customers in accordance with
the customers’ credit valuation system based on credit risk elements and probabilities of non-payment for financial,
managerial or competition reasons; in addition, the Bank obtains proper guarantees from customers for the cases
requiring that according to each customer’s risk level and extension of additional credit facilities.
Moreover, the Bank monitors credit risk and is continuously evaluating the credit standing of customers, in addition to
obtaining proper guarantees from its customers.
The Bank’s credit risk management policy includes the following:
Specifying credit ceilings and concentrations:
The credit policy includes specific and clear ratios for the maximum credit that can be granted to a customer. Moreover,
there are different credit ceilings for each administrative level.
Determining the risk mitigation’s methods:
The Bank’s risk management’s activity depends on several methods to mitigate risk as the following:
- Collaterals and their convertibility to cash and coverage of the credit granted.
- Preapproval of the credit facilities committee on the extension of credit.
- Credit approval authority varies from one management level to another based on the customer’s portfolio size,
maturity and customers’ risk degree.
Mitigating the assets and liabilities’ risks’ concentration:
The Bank works efficiently to manage this risk. Moreover, its annual plan includes the well-studied distribution of credit
focusing on the most promising sectors, in addition to that it is distributed to several geographic areas inside and outside
the Kingdom.
92
Studying, monitoring and following up on credit:
The Bank developed the necessary policies and procedures to determine the study method of credit, maintaining the
objectivity and integrity of decision-making, and ensuring that credit risk is accurately evaluated, properly approved
and continuously monitored.
The general framework of the credit’s policy includes setting up credit’s approval authorities and clarifying credit limits
and the method of determining the risk degree.
The Bank’s organizational structure involves segregating the work units responsible for granting credit from
the work units responsible for monitoring credit as regards to the credit terms, soundness of the credit decision,
implementation of all credit extension terms, adherence to the credit ceilings and determinants in the credit’s policy,
and other related matters.
Moreover, there are specific procedures for following up on performing credit facilities to keep them performing and
non-performing credit facilities to treat them.
The Bank mitigates the assets’ and liabilities’ concentration risk through distributing its activities to various sectors and
geographic areas inside and outside the Kingdom. Moreover, the Bank adopts a specific policy that shows the credit’s
ceilings granted to banks and countries with high credit rating and reviews them continuously through the Assets
and Liabilities Committee to distribute the risks and utilize the credit evaluation. The investment policy specifies the
investment allocation ratios and their determinants in order to distribute them in a way that achieves a high return and
lowers the risk.
Credit risk exposure (less impairment and interest in suspense and before guarantees
and other risk-mitigating factors):
December 31
2014 2013
JD JD
On - Consolidated Statement of Financial Position Items
Balances at central banks 273,366,376 213,668,441
Balances at banks and financial institutions 206,787,496 207,872,141
Deposits at banks and financial institutions - 26,661,835
Direct credit facilities:
Individuals 345,673,111 329,222,048
Real estate loans 158,637,256 142,039,654
Companies:
Corporates 461,068,359 489,732,727
Small and medium companies 211,854,176 201,134,563
Government and public sector 23,762,013 25,872,855
Bonds and Bills:
Financial assets measured at amortized cost 394,457,542 274,865,952
Other assets 7,146,603 6,956,282
Total 2,082,752,932 1,918,026,498
Off Consolidated Statement of Financial Position Items
Letters of guarantee 179,801,599 183,765,877
Letters of credit 40,665,434 69,771,684
Letters of acceptance 44,269,018 41,007,660
Unutilized facility ceilings 101,124,169 104,358,528
Total 365,860,220 398,903,749
93
The types of guarantees against the loans and credit facilities are as follows:
- Real estate mortgages - Mortgage of financial instruments such as shares
- Bank guarantees - Cash collaterals
- Governmental guarantee
Credit exposures according to the degree of risk are categorized according to the following table:
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Government
and Public
Sector
Banks
and Other
Financial
Institutions
Other Total
As of December 31
2014
JD JD JD JD JD JD JD JD
Low risk 35,489,956 21,411,175 43,093,421 23,529,736 649,888,915 - - 773,413,203
Acceptable risk 293,528,329 136,441,794 312,253,458 139,851,963 22,491,795 225,992,717 7,146,603 1,137,706,659
Of which is due (*):
Within 30 days 78,638 - 32,191 28,246 - - - 139,075
From 31 to 60 days 408,019 - 93,337 162,911 - - - 664,267
Under watch 10,353,907 178,956 84,556,786 36,757,444 - - - 131,847,093
Non-performing:
Below level 1,899,848 - 14,388,319 2,281,300 - - - 18,569,467
Allowance provided 3,188,199 372,858 544,800 4,302,894 - - - 8,408,751
Bad debt 27,635,035 1,875,647 75,325,567 22,237,887 - - - 127,074,136
Total 372,095,274 160,280,430 530,162,351 228,961,224 672,380,710 225,992,717 7,146,603 2,197,019,309
Less: Interest in suspense 5,530,087 912,520 12,198,274 4,386,322 - - - 23,027,203
Impairment provision 20,892,076 730,654 56,895,718 12,720,726 - - - 91,239,174
Net 345,673,111 158,637,256 461,068,359 211,854,176 672,380,710 225,992,717 7,146,603 2,082,752,932
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Government
and Public
Sector
Banks
and Other
Financial
Institutions
Other Total
As of December 31
2013
JD JD JD JD JD JD JD JD
Low risk 53,364,470 1,932,839 61,515,960 38,469,831 502,987,808 - - 658,270,908
Acceptable risk 254,597,091 139,275,444 269,975,969 131,647,780 1,986,373 243,967,043 6,956,282 1,048,405,982
Of which is due (*):
Within 30 days 31,566 - 35,410 13,407 - - - 80,383
From 31 to 60 days 504,370 - 445,157 214,133 - - - 1,163,660
Under watch 13,328,594 - 139,590,622 21,239,950 - - - 174,159,166
Non-performing:
Below level 1,779,234 - 863,488 3,222,749 - - - 5,865,471
Allowance provided 4,216,701 71,015 2,690,778 4,434,724 - - - 11,413,218
Bad debt 25,086,931 3,540,983 100,365,552 19,257,782 - - - 148,251,248
Total 352,373,021 144,820,281 575,002,369 218,272,816 504,974,181 243,967,043 6,956,282 2,046,365,993
Less: Interest in suspense 4,118,073 1,293,154 13,712,020 4,855,532 - - - 23,978,779
Impairment provision 19,032,900 1,487,473 71,557,622 12,282,721 - - - 104,360,716
Net 329,222,048 142,039,654 489,732,727 201,134,563 504,974,181 243,967,043 6,956,282 1,918,026,498
94
Credit exposures according to the fair value of the collaterals held against credit facilities
are as follows:
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Government
and Public
Sector
Total
As of December 31, 2014 JD JD JD JD JD JD
Guarantees Against:
Low risk 35,687,637 21,411,175 43,093,421 23,529,736 1,270,218 124,992,187
Acceptable risk 320,384,308 161,980,631 325,406,799 146,659,025 22,885,506 977,316,269
Under watch 1,402,948 52,441 5,929,713 4,449,880 - 11,834,982
Non-performing:
Below level 1,116,847 - 2,674,917 3,856,707 - 7,648,471
Allowance provided 631,770 311,739 3,676,970 4,762,169 - 9,382,648
Bad debt 11,477,545 1,424,792 29,296,246 20,938,753 - 63,137,336
Total 370,701,055 185,180,778 410,078,066 204,196,270 24,155,724 1,194,311,893
Of it: Cash margins 54,199,735 28,197,248 83,703,376 49,805,578 - 215,905,937
Accepted letters of guarantee - - 24,975,146 3,347,955 - 28,323,101
Real estate 215,688,711 212,655,820 185,964,581 111,265,469 - 725,574,581
Quoted stocks 8,118,783 - 13,045,674 3,307 - 21,167,76 4
Vehicles and equipment 35,572,501 31,600 2,292,307 7,231,282 - 45,127,690
Total 313,579,730 240,884,668 309,981,084 171,653,591 - 1,036,099,073
Companies
Individuals
Real Estate
Loans
Corporates
Small and
Medium
Companies
Government
and Public
Sector
Total
As of December 31, 2013 JD JD JD JD JD JD
Guarantees Against:
Low risk 66,698,933 1,932,839 55,283,195 31,847,953 2,117,030 157,879,950
Acceptable risk 220,748,955 141,383,316 269,531,428 146,622,726 23,755,825 802,042,250
Under watch 3,439,784 - 19,662,057 2,009,369 - 25,111,210
Non-performing:
Below level 1,535,744 - 892,364 2,972,218 - 5,400,326
Allowance provided 2,862,846 83,015 2,567,514 5,714,130 - 11,227,505
Bad debt 10,163,156 3,167,257 37,065,636 16,490,646 - 66,886,695
Total 305,449,418 146,566,427 385,002,194 205,657,042 25,872,855 1,068,547,936
Of it: Cash margins 83,649,717 1,932,839 66,729,633 38,162,561 - 190,474,750
Accepted letters of guarantee - - 23,397,574 2,758,185 - 26,155,759
Real estate 185,705,233 174,823,940 142,518,893 113,126,398 - 616,174,464
Quoted stocks 7,548,180 - 7,425,240 - - 14,973,420
Vehicles and equipment 22,116,619 31,600 2,767,010 2,312,599 - 27,227,828
Total 299,019,749 176,788,379 242,838,350 156,359,743 - 875,006,221
95
The Bank’s management monitors the market value of those guarantees periodically. In case the value of the
guarantee declines, the Bank requests additional guarantees to cover the shortage. Moreover, the Bank evaluates
the guarantees against non-performing credit facilities periodically.
Scheduled Debts:
These are the debts that have been previously classified as non-performing credit facilities but taken out therefrom
according to proper scheduling. These debts have been classied as watch list and amounted to JD 10,355,197 for
the year 2014 (JD 3,852,757 for the year 2013).
Restructured Debts:
Restructuring means rearranging credit facilities through adjusting the installments, prolonging the credit
facilities, postponing some installments, extending the grace period, etc.
These debts have been classified as watch list debts and they amounted to JD 6,069,256 for the year 2014 (JD
15,856,417 for the year 2013).
Bonds, Bills, Debentures and Mutual Funds:
The following table illustrates the classification of bonds, bills, debentures and mutual
funds according to external rating institutions:
As of December 31, 2014
Rating Institution
Within Financial
Assets at Fair
Value Through
Comprehensive
Income
Within Financial
Assets
Measured at
Amortized Cost
Total
Rating Grade JD JD JD
AA3 MOODYS - 706,021 706,021
B1 MOODYS - 1,643,871 1,643,871
Unclassified - 3,241,548 18,499,200 21,740,748
Governmental
Governmental
and government
guaranteed bonds
- 373,608,450 373,608,450
Total 3,241,548 394,457,542 397,699,090
As of December 31, 2013
Rating Institution
Within Financial
Assets at Fair
Value Through
Comprehensive
Income
Within Financial
Assets
Measured at
Amortized Cost
Total
Rating Grade JD JD JD
AA3 MOODYS - 705,067 705,067
Unclassified - 2,292,906 8,728,000 11,020,906
Governmental
Governmental
and government
guaranteed bonds
- 265,432,885 265,432,885
Total 2,292,906 274,865,952 277,158,858
96
Concentration on credit risk exposure according to geographical areas are as follows:
Geographical
Area
Inside Jordan
Other
Middle
Eastern
Countries
Europe Asia* America
Other
Countries
Total
JD JD JD JD JD JD JD
Balances at central
banks
244,169,367 28,638,218 558,791 - - - 273,366,376
Balances at banks
and financial
institutions
81,414,114 40,692,390 80,769,941 1,018,850 2,892,201 - 206,787,496
Credit facilities:
To individuals 312,617,501 33,024,186 31,424 - - - 345,673,111
Real estate loans 155,882,499 2,754,757 - - - - 158,637,256
Corporates 404,329,145 18,072,813 38,666,401 - - - 461,068,359
Small and Medium
Companies
202,653,025 9,117,641 83,511 - - - 211,854,177
Government and
Public Sector
1,592,662 20,899,133 1,270,218 - - - 23,762,013
Bonds, Bills and
Debentures:
Financial assets
measured at
amortized cost
369,486,542 24,971,000 - - - - 394,457,542
Other assets 3,290,848 3,829,490 26,264 - - - 7,146,602
Total 2014 1,775,435,703 181,999,628 121,406,550 1,018,850 2,892,201 - 2,082,752,932
Total 2013 1,584,999,378 187,236,991 136,451,669 452,870 8,292,192 593,398 1,918,026,498
*Excluding Middle Eastern countries.
97
Concentration on credit risk exposure according to economic sector are as follows:
Economic Sector Financial Industrial Trade Real Estate Agriculture Shares Individuals
Government
and Public
Sector
Others Total
JD JD JD JD JD JD JD JD JD JD
Balances at central banks - - - - - - - 273,366,376 - 273,366,376
Balances at banks and
financial institutions
206,787,496 - - - - - - - - 206,787,496
Credit facilities 174,007,471 113,763,138 392,054,782 320,615,742 7,436,499 3,342,344 123,397,238 23,762,013 42,615,689 1,200,994,916
Bonds, bills and debentures:
Financial assets measured at
amortized cost
19,205,221 - - - - - - 375,252,321 - 394,457,542
Other assets 7,146,602 - - - - - - - - 7,146,602
Total 2014 407,146,790 113,763,138 392,054,782 320,615,742 7,436,499 3,342,344 123,397,238 672,380,710 42,615,689 2,082,752,932
Total 2013 684,298,067 111,987,246 400,868,154 306,272,452 9,712,213 3,706,470 125,150,374 239,541,296 36,490,226 1,918,026,498
(38/B) Market Risk
Market risk is the potential loss that may arise from the changes in market prices, such as the change in interest
rates, foreign currency exchange rates, equity instrument prices and consequently, the change in the fair value
of the cash flows for the financial instruments that are on- and off-consolidated statement of financial position.
Within the Bank’s investment policy approved by the Board of Directors, acceptable risks are set and monitored
monthly by the Assets and Liabilities Committee which provide guidance and recommendations thereon.
Moreover, the available systems calculate the effect of the fluctuations in interest rates, exchange rates and
share prices.
98
- Interest Rate Risk
Interest rate risk results from the potential change in interest rates and consequently, the potential impact on the
fair value of the financial instruments. The Bank is exposed to the risk of interest rates due to a mismatch or a gap
in the amounts of assets and liabilities according to the various time limits or review of interest rates in a certain
period. Moreover, the Bank manages these risks through reviewing the interest rates on assets and liabilities based
on the risk management’s strategy.
The Bank is exposed to interest rate risks as a result of the timing gaps of re-pricing assets and liabilities. These
gaps are periodically monitored by the Assets and Liabilities Committee through reviewing the report to identify
interest rate risks in the short- and long-terms and take the proper decisions to restrict these risks in light of the
expectations of the interest rate’s trend through using all or some of the following methods:
- Re-pricing deposits and/or loans
- Changing the maturities and size of the assets and liabilities sensitive to interest rates
- Buying or selling financial investments
- Using financial derivatives for interest rate hedging purposes
99
Sensitivity Analysis:
Interest Rate Risk:
December 31, 2014
Change (Increase) in
Interest Rate
Interest Income Sensitivity
(Gain and Loss)
Owners’ Equity Sensitivity
Currency % JD JD
US Dollar 1 2,436,626 23,086
Euro 1 (96,370) 8
GBP 1 11,232 -
Yen 1 (9,464) 11
Other currencies 1 (25,756) 70
December 31, 2014
Change (Decrease) in
Interest Rate
Interest Income Sensitivity
(Gain and Loss)
Owners’ Equity Sensitivity
Currency % JD JD
US Dollar 1 (2,436,626) (23,086)
Euro 1 96,370 (8)
GBP 1 (11,232) -
Yen 1 9,464 (11)
Other currencies 1 25,756 (70)
December 31, 2013
Change (Increase) in
Interest Rate
Interest Income Sensitivity
(Gain and Loss)
Owners’ Equity Sensitivity
Currency % JD JD
US Dollar 1 3,197,536 1,381,871
Euro 1 83,379 30,771
GBP 1 6,308 -
Yen 1 1,189 6
Other currencies 1 1,289,472 1,229,794
December 31, 2013
Change (Decrease) in
Interest Rate
Interest Income Sensitivity
(Gain and Loss)
Owners’ Equity Sensitivity
Currency % JD JD
US Dollar 1 (3,197,536) (1,381,871)
Euro 1 (83,379) (30,771)
GBP 1 (6,308) -
Yen 1 (1,189) (6)
Other currencies 1 (1,289,472) (1,229,794)
100
Currencies Risk:
The following table illustrates the currencies to which the Bank is exposed and the potential and reasonable
change in their rates against the Jordanian Dinar and the related impact on the profit and loss statements. The
currencies positions are monitored daily to ensure that they are within the determined limits. Moreover, the
related reports are submitted to the management.
December 31, 2014
Change in Foreign
Currency Rate
Effect on Profit and Loss Effect on Owners’ Equity
Currency % JD JD
US Dollar - - -
Euro 5 34,011 -
GBP 5 7,199 -
Yen 5 368 -
Other currencies 5 (63,257) -
December 31, 2013
Change in Foreign
Currency Rate
Effect on Profit and Loss Effect on Owners’ Equity
Currency % JD JD
US Dollar - - -
Euro 5 507,832 -
GBP 5 36,562 -
Yen 5 102,348 -
Other currencies 5 260,197 -
Foreign Currencies Risks
Within its approved investment policy, the Bank’s Board of Directors sets up limits for the positions of all
currencies at the Bank. These positions are monitored daily through the Treasury and Investment Department and
are submitted to the executive management to ensure that the maintenance of the currencies positions is within
the approved limits. Moreover, the Bank follows the hedging policy to mitigate the risks of foreign currencies by
using financial derivative.
Risks of Changes in Shares’ Prices:
This represents the risk resulting from the decline in the fair value of the investment portfolio of the shares due to
the changes in the value of the shares’ indicators and the change in the value of shares individually.
December 31, 2014 Change in Indicator Impact on Profit and Loss Impact on Owners’ Equity
Indicator % JD JD
Stock Exchange 5 19,463 643,637
December 31, 2013 Change in Indicator Impact on Profit and Loss Impact on Owners’ Equity
Indicator % JD JD
Stock Exchange
5 72,016 681,928
101
- Shares’ Price Risk
The Board of Directors adopts a specific policy in diversifying investments of the shares based on geographic
and sectorial distribution at predetermined percentages that are monitored daily. According to this policy, it is
recommended to invest in listed shares of well-reputed international markets that have a high liquidity rate to face any
risks that might arise therefrom.
Interest Re-pricing Gap:
The Bank adopts the policy of matching the amounts and maturities of assets and liabilities to narrow gaps
through dividing assets and liabilities into several categories with different durations or interest rate review
maturities, whichever are nearer. This policy reduces risks, includes a study of the related interest rate gaps, and
uses hedging policies through developed tools.
Classification is based on interest rate re-pricing periods or maturities, whichever are nearer.
Interest rate sensitivity is as follows:
As of December 31, 2014
Up to
1 Month
More Than
1 Month
up to
3 Months
More Than
3 Months
up to
6 Months
More Than
6 Month
up to
One Year
From one
Year up to
3 Years
More Than
3 Years
Non-
Interest
Bearing
Total
Assets JD JD JD JD JD JD JD JD
Cash and balances at central banks 153,072,780 18,345,311 - - - - 138,920,971 310,339,062
Balances at banks and financial institutions 148,939,523 18,049,172 - - - - 39,798,801 206,787,496
Financial assets at fair value through profit or
loss
- - - - - - 389,255 389,255
Direct credit facilities - net 39,393,226 157,759,065 120,321,519 190,421,354 281,250,526 376,430,983 35,418,242 1,200,994,915
Financial assets at fair value through other
comprehensive income
- - - - - - 27,591,468 27,591,468
Financial assets measured at amortized cost 2,870,000 7,500,000 15,633,751 74,051,709 267,313,408 27,088,674 - 394,457,542
Investments in associates and unconsolidated
subsidiary company
- - - - - - 9,374,642 9,374,642
Properties, equipment and projects under
construction - net
- - - - - - 58,694,043 58,694,043
Intangible assets - net - - - - - - 1,475,817 1,475,817
Other assets - - - - - - 110,396,262 110,396,262
Deferred tax assets - - - - - - 4,643,761 4,643,761
Total assets 344,275,529 201,653,548 135,955,270 264,473,063 548,563,934 403,519,657 426,703,262 2,325,144,263
Liabilities
Banks’ and financial institutions’ deposits 123,768,303 4,280,000 1,312,540 - - - - 129,360,843
Customers’ deposits 411,929,422 182,106,317 172,343,860 118,825,178 188,798,765 - 449,101,272 1,523,104,814
Cash margins 16,054,693 34,086,588 26,933,728 33,494,733 75,456,220 95,751,832 - 281,777,794
Borrowed funds - - - 15,310,425 19,273,540 - - 34,583,965
Various provisions - - - - - - 4,285,424 4,285,424
Provision for income tax - - - - - - 9,860,350 9,860,350
Deferred tax liabilities - - - - - - 987,012 987,012
Other liabilities - - - - - - 32,361,240 32,361,240
Total liabilities 551,752,418 220,472,905 200,590,128 167,630,336 283,528,525 95,751,832 496,595,298 2,016,321,442
Interest rate re-pricing gap (207,476,889) (18,819,357) (64,634,858) 96,842,727 265,035,409 307,767,825 (69,892,036) 308,822,821
As of December 31, 2013
Total assets 373,660,603 236,307,029 141,244,466 757,016,539 295,548,036 558,414,640 340,438,508 2,702,629,821
Total liabilities 553,666,504 283,183,904 154,757,132 682,978,776 320,491,414 4,138,844 419,127,916 2,418,344,490
Interest rate re-pricing gap (180,005,901) (46,876,875) (13,512,666) 74,037,763 (24,943,378) 554,275,796 (78,689,408) 284,285,331
102
Concentration in Foreign Currencies Risk
As of December 31, 2014 US Dollar Euro
Sterling
Pound
Japanese
Yen
Others Total
Assets JD JD JD JD JD JD
Cash and balances at central banks 52,904,313 23,071,009 209,061 - 12,031,180 88,215,563
Balances at banks and financial institutions 125,750,639 15,268,392 11,266,275 1,037,858 15,069,960 168,393,124
Direct credit facilities - net 172,823,325 2,497,766 286 - 22,920,936 198,242,313
Financial assets at fair value through other
comprehensive income
3,677,254 - - - - 3,677,254
Financial assets measured at amortized cost 25,392,392 - - - - 25,392,392
Properties and equipment, and projects under
construction - net
508,427 - - - - 508,427
Intangible assets-net 108,579 - - - - 108,579
Other assets 4,682,034 4,990 1,428 - 4,269,153 8,957,605
Total assets 385,846,963 40,842,157 11,477,050 1,037,858 54,291,229 493,495,257
Liabilities
Banks’ and financial institutions’ deposits 45,182,447 5,564,483 2,989,815 - 4,041,028 57,777,773
Customers’ deposits 307,957,576 31,040,062 9,765,241 480,932 42,019,071 391,262,882
Cash margins 49,083,388 3,595,758 642,160 220,274 4,867,831 58,409,411
Various provisions 127,155 - - - - 127,15 5
Other liabilities 4,264,352 209,908 30,709 330,325 588,603 5,423,897
Total Liabilities 406,614,918 40,410,211 13,427,925 1,031,531 51,516,533 513,001,118
On-consolidated of financial incom - net (20,767,955) 431,946 (1,950,875) 6,327 2,774,696 (19,505,861)
Off the consolidated statement of financial
position contingent liabilities
244,996,146 27,959,964 1,261,177 3,503,469 9,868,126 287,588,882
As of December 31, 2013
Total assets 944,180,765 47,136,212 10,930,736 328,179 46,383,199 1,048,959,091
Total liabilities 915,126,129 36,979,575 11,661,982 2,375,130 51,587,129 1,017,729,945
Net Concentration on the Consolidated
statement of financial position
29,054,636 10,156,637 (731,246) (2,046,951) (5,203,930) 31,229,146
Off the consolidated statement of financial
position contingent liabilities
294,652,916 30,608,104 5,025,188 10,141,123 10,977,292 351,404,623
103
(38/C) Liquidity Risks
Liquidity risk represents the Bank’s inability to make the available necessary funding to fulfill its obligations on
their maturities. To protect the Bank against these risks, the management diversifies funding sources, manages
assets and liabilities, matches their maturities and maintains an adequate balance of cash, cash equivalents and
marketable securities.
The Bank’s liquidity management policy aims at enhancing the procurability of liquidity at the lowest costs
possible. Through managing liquidity, the Bank seeks to maintain reliable and stable funding sources at a
reasonable cost rate.
Management, measurement and control of liquidity are conducted based on normal and emergency conditions.
This includes analysis of the maturity dates of assets and various financial ratios.
Fund Sources:
The Bank diversifies its funding sources to achieve financial flexibility and to lower funding costs.
Moreover, the Bank has a large customer base comprising individuals, establishments and corporations. In
addition, due to its financial strength, the Bank has an ability to access cash markets, which represent an
additional available funding source.
The existence of the Bank in most of the cities of the Hashemite Kingdom of Jordan (55 branches) in addition
to its branches in Palestine and Cyprus enables the Bank to diversify its funding sources and not to rely on one
geographical area as a source of funding.
In order to comply with the instructions of the regulatory authorities, the Bank maintains part of its customers’
deposits at central banks as a restricted cash reserve that cannot be utilized except under specified regulations.
In addition, the liquidity ratios are reserved at levels higher than the minimum imposed by central banks in the
countries in which the Bank operates.
The contractual maturity dates of the assets and liabilities in the schedule have been determined based on the
remaining period from the date of the consolidated statement of financial position until the contractual maturity
date regardless of the actual maturities reflected by historical events relating to maintaining deposits and the
availability of liquidity.
- The distribution of liabilities (undiscounted) on the basis of the remaining period to the
contractual maturity as of December 31, 2014:
Up to
One Month
More Than
One Month up to
3 Months
More Than
3 Months up
to 6 Months
More Than
6 Months up
to 1 Year
From 1 Year
up to 3 Years
More Than
3 Years
Without
Maturity
Total
Liabilities JD JD JD JD JD JD JD JD
Banks’ and financial
institutions’ deposits
123,768,303 4,280,000 1,312,540 - - - - 129,360,843
Customers’ deposits 411,929,422 631,207,589 172,343,860 118,825,178 188,798,765 - - 1,523,104,814
Cash margins 16,054,693 34,086,588 26,933,728 33,494,733 75,456,220 95,751,832 - 281,777,794
Borrowed funds - - - 15,310,425 19,273,540 - - 34,583,965
Various provisions - - - - - - 4,285,424 4,285,424
Income tax provision - - - - - - 9,860,350 9,860,350
Deferred tax liabilities - - - - - - 987,012 987,012
Other liabilities - - - - - - 32,361,240 32,361,240
Total liabilities 551,752,418 669,574,177 200,590,128 167,630,336 283,528,525 95,751,832 47,494,026 2,016,321,442
Total assets 558,802,798 201,653,548 135,955,270 264,473,063 548,563,934 403,519,657 212,175,993 2,325,144,263
104
- The distribution of liabilities (undiscounted) on the basis of the remaining period to the
contractual maturity as of December 31, 2013:
Up to
One Month
More Than
One Month
up to
3 Months
More Than
3 Months up
to 6 Months
More Than
6 Months up
to 1 Year
From 1 Year
up to 3 Years
More Than
3 Years
Without
Maturity
Total
Liabilities JD JD JD JD JD JD JD JD
Banks’ and financial
institutions’ deposits
101,539,798 4,894,985 1,412,539 10,000,000 2,838,000 - - 120,685,322
Customers’ deposits 410,454,062 621,528,011 132,536,720 122,684,274 173,991,306 - - 1,461,194,373
Cash margins 41,672,644 38,244,592 18,307,873 27,607,725 131,416,976 138,844 - 257,388,654
Borrowed funds - - 2,500,000 7,790,978 12,245,132 4,000,000 - 26,536,110
Various provisions - - - - - - 3,375,908 3,375,908
Income tax provision - - - - - - 6,948,876 6,948,876
Deferred tax liabilities - - - - - - 635,514 635,514
Other liabilities - - - - - - 26,683,934 26,683,934
Liabilities directly
associated with assets
classified as held for sale
- - - 514,895,799 - - - 514,895,799
Total Liabilities 553,666,504 664,667,588 154,757,132 682,978,776 320,491,414 4,138,844 37,644,232 2,418,344,490
Total Assets 524,115,583 236,307,029 141,244,466 757,016,539 295,548,036 558,414,640 189,983,528 2,702,629,821
Off-Consolidated Statement of Financial Position Items
Up to One Year
More Than One
Year to 5 Years
More Than 5
Years
Total
December 31, 2014 JD JD JD JD
Letters of credit and acceptances 255,633,752 - - 255,633,752
Unutilized credit facilities 101,124,169 - - 101,124,169
Letters of guarantee 161,412,904 18,388,695 - 179,801,599
Total 518,170,825 18,388,695 - 536,559,520
Up to One Year
More
Than
One
Year to 5 Years
More
Than
5 Years
Total
December 31, 2013
JD JD JD JD
Letters of credit and acceptances 240,209,528 - -
240,209,528
Unutilized credit facilities 104,358,528 - - 104,358,528
Letters of guarantee 170,658,903 13,106,974 - 183,765,877
Total 515,226,959 13,106,974 - 528,333,933
105
39 - Sectors’ Analysis
A- Information on the Bank’s Activity Sectors
For managerial purposes, the Bank is organized into six major activity sectors as well as financial brokerage and
consultation services provided by Al-Ahli Financial Brokerage Company.
- Accounts of individuals:
Includes following up on individual customers’ deposits, granting them loans, debts, credit cards and other services.
- Accounts of small and medium companies:
Includes following up on deposits and credit facilities granted to the clients of this sector who are classified according
to their deposits’ and facilities’ volume in accordance to the Bank’s established policies and procedures, which conform
to the regulatory authorities’ instructions.
- Accounts of corporations:
Includes following up on deposits and credit facilities granted to the clients of this sector who are classified according
to their deposits’ and facilities’ volume in accordance to the Bank’s established policies and procedures, which conform
to the regulatory authorities’ instructions.
- Treasury:
Includes providing dealing, treasury, fund management services and long-term investments measured at amortized
cost that are held until the collection of contractual cash flows.
- Investment and foreign currency management:
Includes the Bank’s local and foreign investments recorded at fair value in addition to foreign currency
trading services.
- Other:
Includes all accounts not listed in the above-mentioned sectors. For example, shareholders’ equity, investments in
subsidiaries, property and equipment and general and sup.
106
The following table represents information on the Bank’s sectors according to activities:
Individual
Funding
Small and
Medium
Companies
Institutional
Funding
Treasury
Investments
and Foreign
Currencies
Other 2014 2013
JD JD JD JD JD JD JD JD
Gross revenue 46,351,099 15,953,860 33,764,623 11,353,889 1,785,720 1,090,765 110,299,956 103,492,933
Provision for impairment in
direct credit facilities
(1,680,434) (1,941,222) (14,478,662) - - - (18,100,318) (18,472,130)
Results of Business Sector 44,670,665 14,012,638 19,285,961 11,353,889 1,785,720 1,090,765 92,199,638 85,020,803
Distributed (expenses)-net (32,305,648) (11,660,225) (16,069,239) (3,340,239) (914,527) (6,309,866) (70,599,744) (63,792,128)
Loss from impairment of
foreclosed assets
- - - - - (1,553,077) (1,553,077) (366,372)
Gain recognized on
disposal of interest in
former associative
- - - - 1,536,732 - 1,536,732 -
Bank’s share of associate
company’s gain
- - - - 83,180 - 83,180 11,474
Income for the year before
taxes
12,365,017 2,352,413 3,216,722 8,013,650 2,491,105 (6,772,178) 21,666,729 20,873,777
Income tax (5,964,380) (7,340,818)
Income for the year from
continuing operations
15,702,349 13,532,959
Net income from
discontinued operations
18,458,463 2,470,930
Income for the Year 34,160,812 16,003,889
Additional
Information
Sector’s assets 527,685,419 219,850,043 494,575,634 841,470,473 26,835,164 94,956,626 2,205,373,359 2,596,808,783
Investments in associates
and unconsolidated
subsidiary company
- - - - - 9,374,642 9,374,642 10,304,730
Assets not distributed over
sectors
- - - - - 110,396,262 110,396,262 95,516,308
Total Assets 527,685,419 219,850,043 494,575,634 841,470,473 26,835,164 214,727,530 2,325,144,263 2,702,629,821
Sector’s liabilities 1,045,131,300 338,557,569 332,430,569 186,216,101 30,417 81,594,246 1,983,960,202 2,391,660,556
Liabilities not distributed
over sectors
- - - - - 32,361,240 32,361,240 26,683,934
Total Liabilities 1,045,131,300 338,557,569 332,430,569 186,216,101 30,417 113,955,486 2,016,321,442 2,418,344,490
Capital Expenditures 12,762,847 11,397,186
Depreciation and
Amortization
7,704,965 6,909,305
107
B- Information on the Geographical Allocation
This sector represents the geographical distribution of the Bank’s operations. The Bank performs its operations mainly
in the Kingdom, which represents the local operations. Moreover, the Bank conducts regional operations through its
branches in Palestine and Cyprus.
The following are the Bank’s revenue, assets and capital expenditures according to
geographical allocation:
Inside Jordan * Outside Jordan * Total
2014 2013 2014 2013 2014 2013
JD JD JD JD JD JD
Total revenue 98,448,738 93,306,226 11,851,218 10,186,707 110,299,956 103,492,933
Total assets 2,074,979,680 1,863,546,174 250,164,583 839,083,647 2,325,144,263 2,702,629,821
Capital
expenditures
10,924,227 11,014,246 1,838,620 382,940 12,762,847 11,397,186
* After excluding balances and transactions between the external branches and subsidiaries of the Bank.
40 - Capital Management:
A- Description of what is considered as paid-up capital
Capital is categorized into paid-up capital, economic capital and regulatory capital whereby regulatory capital is
defined, according to the Banks’ Law, as the total value of the items determined by the Central Bank for control purposes
to meet the requirements of the capital adequacy ratio as per the Central Bank of Jordan’s instructions. Furthermore,
capital consists of two parts: Primary Capital (Tier 1) made up of paid-up capital, declared reserves (including statutory
reserve, voluntary reserve, share premium and treasury share premium) and retained earnings, excluding restricted and
minority interest amounts net of loss for the period, costs of the acquisition of treasury stock, decrease in the provisions
required from the Bank and goodwill; and Support Capital (Tier 2) consisting of the undeclared reserves, exchange rate
differences, general banking risks’ reserve, instruments with debt-equity shared characteristics, support debts and 45%
of the cumulative change in fair value, if positive, and 100%, if negative. A third part of capital (Tier 3) might be formed
in case the capital adequacy ratio goes below 12% due to factoring capital adequacy ratio into market risks investments
in subsidiary banks and financial institutions are deducted (if their financial statements are not consolidated). Moreover,
investments in the capitals of banks and financial institutions are deducted.
B- Regulatory party’s requirements concerning capital and the manner in which they are met
Instructions of the Central Bank of Jordan require that paid-up capital would not be less than JD 100 million and
equity-to-assets ratio be not less than 6%. Moreover, the Central Bank of Jordan’s instructions require that the
ratio of regulatory capital to assets weighted by risks and market’s risks (capital adequacy ratio) be not less than
12%, which is considered by the Bank.
Additionally, the Bank complies with Article (62) of the Banks
’
Law which requires the Bank to appropriate 10% of
its net profits in the Kingdom and continue to do so until the reserve equals the Bank’s paid-up capital. This meets
the requirements of the statutory reserve prescribed by the Companies
’
Law.
The Bank complies with Article (41) of the Banks
’
Law which requires adherence to the limits set by the Central
Bank of Jordan relating to:
1. The percentage of risks relating to its assets and assets weighted by risks, elements of capital, reserves and contra accounts.
2. Ratio of total loans to regulatory capital the Bank is allowed to grant to one person, his allies or to related stakeholders.
3. Ratio of total loans granted to the major ten customers of the Bank to total loans extended by the Bank.
108
C- Method of Achieving Capital Management Objectives
Capital management includes the optimal employment of funds to achieve the highest return on capital possible
while maintaining the minimum required by laws and regulations. The Bank adopts a policy of exerting efforts to
reduce the cost of funds as much as possible through finding low-cost funds, increasing the customers’ base, and
optimally employing these funds in acceptable risk activities to achieve the highest return possible on capital.
D- Capital Adequacy
The capital adequacy ratio is calculated according to the instructions of the Central Bank of Jordan based on the
Basel Committee
’s
resolution. The following is the comparative capital adequacy ratio:
December 31
2014 2013
(in thousand JD) (in thousand JD)
Primary capital items
Subscribed and paid-up capital 175,000 165,000
Statutory reserve 47,948 43,935
Voluntary reserve 30,236 26,224
Share premium - 9,346
Other reserves 2,005 1,606
Retained earnings 23,295 25,531
Less:
Deferred provisions under the central bank’s approval (4,696) -
Real estate foreclosed by the bank against debts (38,914) (35,671)
Goodwill and other intangible assets (6,119) (6,175)
Investment in insurance companies and unconsolidated
financial institutions
(1,609) (22,739)
Deficit in additional paid-up capital - (10,925)
Total primary capital 227,146 196,132
Supplementary capital items:
General banking risks reserve 11,005 11,148
Fair value reserve 825 666
Less:
Investments in insurance companies and unconsolidated
Financial institutions
(1,609) (22,739)
Total supplementary capital 10,221 -
Total regulatory capital 237,367 196,132
Total risk-weighted assets 1,653,188 1,648,352
Regulatory capital adequacy ratio (%) 14/36 11/90
Primary capital adequacy ratio (%) * 13/74 11/90
* Primary capital is calculated net of investments in banks and subsidiary financial institutions as their financial
statements were not consolidated.
The capital adequacy ratio has been calculated according to the Basel II’s resolution as of December 31, 2014 and
as of December 31, 2013.
109
41 - Accrued assets and liabilities analysis:
The following table illustrates the analysis of assets and liabilities according to the
expected period of their recoverability or settlement:
December 31, 2014 Up to One Year More Than One Year Total
JD JD JD
Assets:
Cash and balances at central banks 310,339,062 - 310,339,062
Balances at banks and financial institutions 206,787,496 - 206,787,496
Financial assets at fair value through profit or loss 389,255 - 389,255
Direct credit facilities - net 543,313,406 657,681,509 1,200,994,915
Financial assets at fair value through other
comprehensive income
27,591,468 - 27,591,468
Financial assets measured at amortized cost 100,055,460 294,402,082 394,457,542
Investments in associates and unconsolidated
subsidiary company
- 9,374,642 9,374,642
Properties, equipment and projects under
construction - net
- 58,694,043 58,694,043
Intangible assets - net - 1,475,817 1,475,817
Other assets - 110,396,262 110,396,262
Deferred tax assets - 4,643,761 4,643,761
Total assets 1,188,476,147 1,136,668,116 2,325,144,263
Liabilities:
Banks’ and financial institutions’ deposits 129,360,843 - 129,360,843
Customers’ deposits 1,334,306,049 188,798,765 1,523,104,814
Cash margins 110,569,742 171,208,052 281,777,794
Borrowed funds 15,310,425 19,273,540 34,583,965
Various provisions 4,285,424 - 4,285,424
Provision for income tax 9,860,350 - 9,860,350
Deferred tax liabilities - 987,012 987,012
Other liabilities - 32,361,240 32,361,240
Total liabilities 1,603,692,833 412,628,609 2,016,321,442
Net (415,216,686) 724,039,507 308,822,821
110
Up to One Year More than One Year Total
December 31, 2013 JD JD JD
Assets:
Cash and balances at central banks 249,213,879 7,444,500 256,658,379
Balances at banks and financial institutions 207,872,141 - 207,872,141
Deposits at banks and financial institutions 26,661,835 - 26,661,835
Financial assets at fair value through profit or loss 1,440,320 - 1,440,320
Direct credit facilities - net 490,227,539 697,774,308 1,188,001,847
Financial assets at fair value through other
comprehensive income
23,973,527 - 23,973,527
Financial assets measured at amortized cost 126,122,084 148,743,868 274,865,952
Investments in associates and unconsolidated
subsidiary company
- 10,304,730 10,304,730
Properties, equipment and projects under
construction - net
- 54,013,760 54,013,760
Intangible assets - net - 1,777,341 1,777,341
Other assets - 95,516,308 95,516,308
Deferred tax assets - 4,397,862 4,397,862
Assets held for sale 557,145,819 - 557,145,819
Total assets 1,682,657,144 1,019,972,677 2,702,629,821
Liabilities:
Banks’ and financial institutions’ deposits 117,847,322 2,838,000 120,685,322
Customers’ deposits 1,287,203,067 173,991,306 1,461,194,373
Cash margins 125,832,834 131,555,820 257,388,654
Borrowed funds 10,290,978 16,245,132 26,536,110
Various provisions 3,375,908 - 3,375,908
Provision for income tax 6,948,876 - 6,948,876
Deferred tax liabilities - 635,514 635,514
Other liabilities - 26,683,934 26,683,934
Liabilities directly associated with assets
classified as held for sale
514,895,799 - 514,895,799
Total liabilities 2,066,394,784 351,949,706 2,418,344,490
Net (383,737,640) 668,022,971 284,285,331
111
42 - Accounts Managed on Behalf of Customers
December 31
2014 2013
JD JD
Accounts managed on behalf of customers* 32,900,722 40,646,141
* This item represents accounts with no guaranteed capital managed on behalf of customers. These accounts do not
appear within the assets and liabilities of the Bank in the consolidated statement of financial position.
43 - Commitments and Contingent Liabilities
A. Commitments and contingent liabilities:
December 31
2014 2013
JD JD
Letters of credit:
Letters of credit - outcoming 40,665,434 69,771,684
Letters of credit - incoming 170,699,300 129,430,184
Acceptances 44,269,018 41,007,660
Letters of guarantee:
- Payments 95,046,541 102,226,349
- Performance bonds 62,225,739 58,151,439
- Other 22,529,319 23,388,089
Unutilized credit facilities 101,124,169 104,358,528
Total
536,559,520 528,333,933
B. The Bank signed multiple agreements to purchase a new banking system with a total cost of around JD 17.6 million.
The system is still under construction. Noting that there is around JD 3.3 million not paid yet as of December 31, 2014.
44 - Lawsuits Against the Bank
The lawsuits led against the Bank amounted to JD 13,234,790 as of December 31, 2014 (JD 10,696,032 as of
December 31, 2013). In the opinion of the Bank’s management and its legal advisors, no liabilities exceeding the
provision of JD 278,988 as of December 31, 2014 are expected to arise.
112
45 - Fair Value Measurement
A- Fair value of financial assets and financial liabilities that are measured at fair value on a
recurring basis:
Some of the financial assets and financial liabilities are measured at fair value at the end of each reporting period.
The following table gives information about how the fair value of these financial assets and financial liabilities are
determined (valuation techniques and key inputs):
Fair Value
Valuation
Techniques
and Key
Inputs
Fair Value
Hierarchy
Significant
Unobservable
Inputs
Relationship
of
Unobservable
Inputs to Fair
Value
December 31
Financial Assets 2014 2013
JD JD
Financial assets at fair value
Financial assets at fair value
through profit or loss:
Companies stocks 389,255 1,440,320 Level 1 Quoted Shares Not Applicable Not Applicable
389,255 1,440,320
Financial assets at fair
value through other
comprehensive income:
Quoted shares 12,872,746 13,638,560 Level 1 Quoted Shares Not Applicable Not Applicable
Mutual fund 3,241,548 2,292,906 Level 2
The fund manager’s
evaluation of the fair
value
Not Applicable Not Applicable
Unquoted shares 11,477,174 8,042,061 Level 2
Through using
the equity method
and latest financial
information available
Not Applicable Not Applicable
27,591,468 23,973,527
Total financial assets at
fair value
27,980,723 25,413,847
There were no transfers between level 1 and level 2 during the year ended December 31, 2014 and 2013.
113
B- Fair value of financial assets and financial liabilities that are not measured at fair value
on a recurring basis:
Except what is detailed in the following table, we believe that the carrying amounts of financial assets and financial
liabilities recognized in the Bank’s financial statements approximate their fair values:
December 31,2014 December 31, 2013
Book Value Fair Value Book Value Fair Value
Fair Value
Hierarchy
JD JD JD JD
Financial assets not calculated at
fair value
Deposits at central banks 134,445,405 134,454,914 124,713,054 124,724,261 Level 2
Balances and deposits at banks
and financial institutions
206,787,496 206,821,051 234,533,976 234,929,492 Level 2
Direct credit facilities at
amortized cost
1,200,994,915 1,203,025,420 1,188,001,847 1,193,338,402 Level 2
Other financial assets at
amortized cost
394,457,542 399,946,376 274,865,952 278,848,197 Level 1 & 2
Total financial assets not
calculated at fair value
1,936,685,358 1,944,247,761 1,822,114,829 1,831,840,352
Financial liabilities not calculated
at fair value
Banks’ and financial institutions’
deposits
129,360,843 129,459,145 120,685,322 121,286,118 Level 2
Customers’ deposits 1,523,104,814 1,528,302,739 1,461,194,373 1,466,338,719 Level 2
Cash margin 281,777,794 281,783,801 257,388,654 257,399,127 Level 2
Borrowed funds 34,583,965 34,616,799 26,536,110 26,594,382 Level 2
Total financial liabilities
not calculated at fair value
1,968,827,416 1,974,162,484 1,865,804,459 1,871,618,346
For the items listed above, the fair value of the financial liabilities have been classified as level two in accordance with
the generally accepted pricing models that reflect credit risk of counterparties.
46 - Discontinued Operations
The details of this item are as follows:
For the Year Ended
December 31
2014 2013
JD JD
Net profit from the sale of Ahli Bank’s contribution in the International Ahli Bank - Lebanon (A) 18,250,936 2,470,930
Net profit from the sale of Ahli Bank’s contribution in Al Zarqa National College Company (B) 207,527 -
18,458,463 2,470,930
A- On May 23, 2014 an agreement was signed with Fransabank to sell the Bank’s contribution in the
shareholders’ equity of the International Ahli Bank - Lebanon, including the Bank’s share of 97/891% in
the Bank’s capital, in addition to the Bank’s share of 89/41% of the paid-up capital advances. Moreover, the
investment was excluded on April 30, 2014 and the legal procedures were completed and the approval from the
Central Bank of Lebanon was obtained on June 25, 2014.
114
The details of the assets and the liabilities (net book value) for the sold investment, and the
calculation of the profit from the selling transaction are as follows:
April 30, 2014
JD
Assets:
Cash and balances at central banks 100,846,819
Balances at banks and financial institutions 3,976,769
Direct credit facilities - net 158,908,594
Financial assets 267,468,670
Investment in associate companies 141,400
Properties, equipment - net 7,338,841
Intangible assets - net 1,418,000
Other assets 3,734,116
Total assets 543,833,209
Liabilities:
Banks’ and financial institutions’ deposits 15,703,345
Customers’ deposits 478,850,308
Cash margins 314,271
Various provisions 1,520,798
Other liabilities 4,423,026
Total liabilities 500,811,748
Net book value for the sold investment after the profit period to the date April 30, 2014 43,021,461
115
The details of the net profit from the sale of Ahli Bank’s contribution in the International
Ahli Bank - Lebanon are as follows:
Amount Amount
USD JD
Net sales after reducing the profit for the period up to April 30, 2014 (The amount
was received on July 23, 2014)
101,911,930 72,255,558
Uses of the following:
Less: Compensation of employees and the cost of terminating managers’ contracts (4,280,000) (3,034,520)
Financial and legal consults’ expenses (275,000) (194,975)
Cost of releasing the Bank’s estates in Lebanon (380,000) (269,420)
Amortized costs for the license and the computer programs that are non-transferable (441,000) (312,669)
Amortizing expenses that were previously allocated to the Company (709,000) (502,681)
Board of Directors’ remunerations (550,000) (389,950)
Total expenses related to the selling transaction (6,635,000) (4,704,215)
Net sales after reducing the related expenses 95,276,930 67,551,343
Less: Net book value for the sold investment before the profit for the period up to
April 30, 2014
(59,591,001) (42,250,020)
Profit from the selling transactions 35,685,929 25,301,323
Add: The International Ahli Bank - Lebanon transaction results for the four months
ended April 30, 2014
1,088,070 771,442
Net profit from the selling transaction before taxes 36,773,999 26,072,765
Less: Income tax (Note 20) (11,032,199) (7,821,829)
Net profit from the selling transaction 25,741,800 18,250,936
116
B- On December 29, 2014 an agreement was signed with Al Quds Company for Learning, Training and Consulting
to sell the Bank’s contribution in Al Zarqa National College Company, including the Bank’s share in the
shareholder’s equity of 100% from the Company’s capital with an amount of JD 1.2 million paid as follows:
1- JD 100,000 will be paid before signing the agreement (the amount was received on December 24, 2014)
2- JD 200,000 within 10 working days from the date of signing the agreement (the amount was received on the
date of January 14, 2015)
3- JD 400,000 due after 6 months from the date of executing the bill of waiver at the Companies’
Control Department
4- JD 500,000 due after 12 months from the date of executing the bill of waiver at the Companies’
Control Department, the investment was excluded on June 30, 2014
The net assets and the liabilities (net book value) for the sold investment, and the profit
calculation from the selling transaction:
June 30, 2014
JD
Assets:
Cash and balances at central banks and financial institutions 653,802
Properties, equipment - net 565,749
Other assets 37,406
Total assets 1,256,957
Liabilities:
Various provisions 57,421
Other liabilities 72,802
Total liabilities 130,223
The net book value of the sold investment after the profit for the period
up to June 30, 2014
1,126,734
The details of the profit calculation from selling the Bank’s contribution in Al Zarqa
National College Company:
Amount
JD
Net sales without including the non-distributed profit up to June 30, 2014 1,199,850
Uses of the following:
Less: Compensation of employees and the cost of terminating managers’ contracts (26,580)
Financial and legal consults’ expenses (24,000)
Total expenses related to the selling process (50,580)
Net sales after reducing the related expenses 1,149,270
Less: Net book value for the sold investment before the profit for the period up to
June 30, 2014
(1,010,297)
Profit from the selling transaction 138,973
Add: Allowance for the non-distributed profits up to June 30, 2014 233,323
Net profit from the selling transaction before taxes 372,296
Less: Income tax (Note 20) (164,769)
Net profit from the selling transaction 207,527
117
47 - Assets Held for Sale
The details of this item are as follows:
December 31
2014 2013 *
Assets held for sale: - 106,218,573
Cash and balances at central banks - 3,897,207
Balances at banks and financial institutions - 5,734
Balances at associate companies - 155,983,703
Direct credit facilities - net - 15,523,809
Financial assets at fair value through profit or loss - 130,921
Financial assets at fair value through other comprehensive income - 257,684,406
Financial assets at amortized cost - 846,873
Properties, equipment - net - 7,628,235
Intangible assets - net - 1,422,996
Other assets - 7,803,362
Total assets - 557,145,819
Liabilities that are directed related to the assets held for sale:
Banks’ and financial institutions’ deposits - 8,010,951
Customers’ deposits - 457,736,424
Cash margins - 35,224,831
Subsidiary and institutions’ deposits - 4,736,520
Various provisions - 1,349,994
Income tax provision - 454,795
other liabilities - 7,382,284
Total assets - 514,895,799
* These represent the assets and liabilities for the International Ahli Bank - Lebanon as of December 31, 2013.
118
48 - Adoption of New and Revised International Financial Reporting Standards (IFRSs)
A- New and revised IFRSs applied with no material effect on the consolidated financial
statements:
The following new and revised IFRSs have been adopted in the preparation of the consolidated financial statements for
which they did not have any material impact on the amounts and disclosures of the financial statements; however, they
may affect the accounting for future transactions and arrangements:
Amendments to IAS (32): Financial Instruments
Presentation relating to application guidance on the
offsetting of financial assets and financial liabilities.
Amendments to IAS (36): Recoverable Amount
Disclosures
The amendments restrict the requirements to
disclose the recoverable amount of an asset or CGU
to the period in which an impairment loss has been
recognized or reversed. They also expand and clarify
the disclosure requirements applicable when an asset
or CGU’s recoverable amount has been determined on
the basis of fair value less costs of disposal.
Amendments to IAS (39): Financial Instruments,
Recognition and Measurement, Novation of
Derivatives and Continuation of Hedge Accounting
The amendment allows the continuation of hedge
accounting when a derivative is novated to a clearing
counterparty and certain conditions are met.
Amendments to IFRS (10), IFRS (12) and IAS (27) –
Guidance on Investment Entities
On October 31
st
2012, the IASB published a standard
on investment entities, which amends IFRS (10), IFRS
(12) and IAS (27) and introduces the concept of an
investment entity in IFRSs.
119
B- New and Revised IFRSs issued but not yet effective
The following new and revised IFRSs have been issued but are not effective yet:
Effective for Annual
Periods Beginning
on or After
IFRS (15): Revenue from contracts with customers January
1
st
,
2017
IFRS (9) Financial Instruments (2014) In July 2014 the final standard of IFRS (9) was
issued introducing:
New classification for debt instruments that are held to collect contractual cash
flows with ability to sell, and related measurement requirement consists of fair value
through other comprehensive income (FVTOCI)
Impairment of financial assets applying expected loss model through 3 phases,
starting by 12-month expected impairment loss to be initiated on initial recognition of
the credit exposure, and life time impairment loss to be recognized upon significant
increase in credit risk prior to the date the credit exposure is being impaired, and
phase 3 when the loan is effectively impaired
January
1
st
,
2018
Amendments to IFRS (11) to clarify accounting for acquisitions of Interests in
joint operations
January
1
st
,
2016
Amendments to IAS (16) and IAS (38) to clarify the acceptable methods of
depreciation and amortization
January
1
st
,
2016
Amendments to IAS (16) and IAS (41) require biological assets that meet the
definition of a bearer plant to be accounted for as property, plant and equipment in
accordance with IAS (16)
January
1
st
,
2016
Amendments to IFRS (10) and IAS (28) clarify that the recognition of the gain or
loss on the sale or contribution of assets between an investor and its associate or joint
venture depends on whether the assets sold or contributed constitute a business
January
1
st
,
2016
Amendments to IFRS (10), IFRS (12) and IAS (28) clarifying certain aspects of
applying the consolidation exception for investment entities
January
1
st
,
2016
Amendments to IAS (1) to address perceived impediments to preparers exercising
their judgment in presenting their financial reports
January
1
st
,
2016
Annual improvements to IFRSs 2012-2014 July
1
st
,
2016
Annual improvements to IFRSs 20102012- cycle that includes amendments to IFRS
(2), IFRS (3), IFRS (8), IFRS (13), IAS (16), IAS (38) and IAS (24)
July
1
st
,
2014
Annual improvements to IFRSs 20112013- cycle that includes amendments to IFRS
(1), IFRS (3), IFRS (13) and IAS (40)
July
1
st
,
2014
Amendments to IAS (19) employee benefits clarify the requirements that relate to
how contributions from employees or third parties that are linked to service should be
attributed to periods of service
July
1
st
,
2014
Management anticipates that each of the above standards and interpretations will be adopted in the consolidated
financial statements by its date mentioned above without having any material impact on the Bank’s consolidated financial
statements, except for IFRS 15 and IFRS 9. Management anticipates that IFRS (15) and IFRS (9) will be adopted in
the Bank’s consolidated financial statements for the annual period beginning January 1
st
, 2017 and January 1
st
,
2018
respectively. The application of IFRS (15) and IFRS (9) may have significant impact on amounts reported and disclosures
made in the Bank’s consolidated financial statements in respect of revenue from contracts with customers and the Bank’s
consolidated financial assets and consolidated financial liabilities. However, it is not practicable to provide a reasonable
estimate of effects of the application of these standards until the Bank performs a detailed review.
Disclosure
Data
122
The 2014 Jordan Securities Commission’s Requirements and
Disclosure Statements
Branch Name No. of Employees Branch Name
No. of
Employees
Branch Name
No. of
Employees
Main Branch 27 Um Uthaina Souk 8 Balqa University 7
Corporate 33 Rabia 8 Bawabat Al Salt 9
Abdoun 12 City Mall 7 Al Fuhais 4
Taj Mall 6 Khalda 7 Deir Alla 7
Jabal Amman 13 Sweileh 10 Zarqa 16
Mecca Street 11 Abu Nseir 7 New Zarqa 8
Sweifieh 10 Hashmi Al Shamali 7 Free Zone/Zarqa 5
Al Wakalat Street 11 Hurriya Street 8 Jerash 10
Culture Street 11 Sahab 7 Mafraq 9
Queen Rania Al Abdullah
Street
11 Marka 9 Ramtha 9
Jabal Al Hussein 10 Dahiyat Al Yasmeen 8 Irbid – Army Street 13
Wasfi Al Tal Street 14 Ibn Khaldoun Street 5 Irbid – Hashmi Street 12
Wadi Saqra 8 Ruseifah 7 Karak 11
Downtown – Amman 16 Al Jubayhah 7 Tafilah 11
Middle East Circle 11 Khreibet Al Souk 8 Maan 12
Bayader Wadi Al Seer 10 Marj Al Hamam 9 Aqaba 19
Chamber of Industry
Building
10 Madaba 12 Arabella Mall 6
Tlaa Al Ali 8 Irbid – Industrial Zone 6 Salt 9
Abdullah Ghosheh Street 8
Palestine
Bireh – Ramallah 19 Bethlehem 23
Shallalah Street –
Hebron
3
Nablus 21 Salam Street – Hebron 19 Jenin 10
Cyprus
Limassol 14
1 - (A) Description of the Bank’s Main Activities
The Bank provides comprehensive banking and financial
services, and supplies its customers with a comprehensive
range of services and technological developments in the
field of banking and in all economic sectors.
(B) Location of Branches
Jordan Ahli Bank’s general management is located in
Shmeisani, Queen Nour Street, and hosts a total of (843)
employees. The Bank’s network of (55) branches and
offices is ideally distributed among Jordan’s governorates,
concentrated particularly in Amman. It also provides
coverage to Palestine, which hosts six branches, in addition
to one branch in Cyprus. Details of the aforementioned
branches are presented at the end of this annual report. The
total number of employees working for the Bank during
2014 reached (1,592) employees, distributed among the
branches as follows:
123
(C) Capital Investment Volume
As of 31/12/2014, the capital investment volume of Jordan Ahli Bank amounted to JD (58.7) million.
2 - As of the end of 2014, the Bank’s numerous subsidiaries are as follows:
No. Company Name Main Activity
No. of
Employees
Capital in
Millions
Ownership
Percentage
1 Ahli Microfinance Co. LLC Micro-projects financing 164 3.5 100%
2 Ahli Brokerage Co. PS Financial brokerage 12 15 100%
3 Al-Ahli Financial Leasing Co. PS Financial leasing 9 10 100%
4 Ahlona Social Work Social work 3 1.7 100%
3
-
(A) Brief Introduction of the Members of the Jordan Ahli Bank Board of Directors:
H.E. Dr. Omar Razzaz
Chairman
From 15/10/2014
Appointed in 2014
Jordanian, born in 1961
Holder of a post-doctoral degree from Harvard Law School; a PhD in Urban Planning from Harvard University; a Master’s degree in
International Development and Regional Planning from MIT University; and a BA in Civil Engineering/Transportation Planning and
Environmental Design from Louisiana Tech University
Served as a Director General of the World Bank in Washington and Beirut; Director General of the Jordan’s Social Security Corporation
Investment Fund; Head of the National Strategy Technical Team; Chairman of the Privatization Evaluation Committee; Chairman of
the Jordan Strategy Forum (JSF); and Chairman of the Board of Trustees, King Abdullah II Fund for Development (KAFD)
Independent member
H.E. Dr. Rajai Saleh
Muasher
Chairman
Until 14/10/2014
Appointed in 1997
Jordanian, born in 1944
Holder of a PhD in Business Administration/Marketing, from the USA; a Master of Business Administration (MBA), from the USA; and
a BA in Chemistry, from the American University of Beirut
Served as a Deputy Prime Minister – Former Minister of State; Former Minister of Industry and Trade; Minister of Supply – for multiple
cycles; Member of the Senate House – for multiple cycles; and Chairman and member of various companies
Non-independent member
H.E. Mr. Saad Nabil
Muasher
Deputy Chairman
From 15/10/2014
Appointed in 2014
Jordanian, born in 1974
Holder of a Master’s degree in Business Administration (MBA) from Stanford University and a BA in Economics from Northwestern
University
Served as a First Deputy Director General of the Jordan Ahli Bank; Deputy Director General of the Ad Dawliya for Hotels and Malls Co.
– Sheraton Hotel; and member of various companies
Non-independent member
H.E. Mr. Nadim Yousef
Muasher
Deputy Chairman
Until 14/10/2014
Appointed in 1997
Jordanian, born in 1950
Holder of a Master’s degree in Civil Engineering, from the USA and a BA in Architecture
Served as a Former Member of the Senate House
Chairman of the following companies: Arab International Hotels Co. (Marriott), El Zay Ready Wear Manufacturing Co., Jordan
Worsted Mills Co., Ad Dawliya for Hotels and Malls Co. (Sheraton); Business Tourism Co.
Non-independent member
124
H.E. Dr. François Basil
Representative, Byblos
Bank
Member
Appointed in 2007
Jordanian, born in 1934
Holder of a PhD in Law
Chairman and Director General of Byblos Bank/Lebanon, Africa, Europe, Syria, America and Luxemburg
Non-independent member
H.E. Mr. Emad Yousef
Muasher
Representative, Muasher
Investment and Trading
Co.
Member
Appointed in 1997
Jordanian, born in 1957
Holder of a Master’s degree in International Business Administration, from the USA; and a BA in Economics
Serves as Deputy Chairman and Board Member of various companies, including Muasher Co., part of Muasher Group
Non-independent member
H.E. Mr. Wasef Azar
Representative, Jordan
Investor Center
Member
Appointed in 1997
Jordanian, born in 1936
Holder of a Master’s degree in Economics and Development Management, from the USA; and a Bachelor of Law (LLB), from Damascus
Member of the Senate House; Former Minister of Industry and Trade; Board Member of various companies; many years of experience
in both the public and private sectors, and in various fields; Manager of several establishments and companies
Non-independent member
H.E. Mr. Mohammad Al
Abdallat
Representative, Social
Security Corporation
Member
Appointed in 2010
Jordanian, born in 1946
Holder of a Bachelor’s degree in Commerce, from Cairo University
Serves as the Executive Director of the Nuqul Group; Board Member/Treasurer of the Chamber of Industry, Amman; Board Member
in the Arab Union Council for Paper Industry; Chairman of the Pearl Sanitary Paper Converting Co. PLC; Advisor to the Office of the
Prime Minister; Deputy Chairman of the Civil Service Consumer Cooperation; and Board Member in various foreign companies
Non-independent member
H.E. Mr. Rafiq Saleh
Muasher
Representative, Rajai
Muasher & Brothers Co.
Member
Appointed in 1997
Jordanian, born in 1949
Holder of a Master’s degree in Construction Engineering; and a Master’s degree in Engineering Projects Management, from the USA
Ranco Co. for Contracting and Trade (1980)
Rajai Muasher & Brothers Co. (1980-1985)
Al Ahliyya Financial Investments (1985-1988)
National Securities Co. (1988 to date)
Non-independent member
125
H.E. Mr. Hani Fraij
Representative, Arabia
S.A.L. Holding Co. –
Lebanon
Member
Appointed in 1997
Lebanese, born in 1940
Holder of a BA in Business Administration, from the American University of Beirut
Serves as the Director General of Atallah Fraij Institution – Beirut; Deputy Chairman of Arabia Insurance Co. – Beirut; and Chairman of
Andalusia Co. – Beirut
Non-independent member
H.E. Mr. Mahmoud Zuhdi
Malhas
Member
Appointed in 1997
Jordanian, born in 1935
Holder of a BA in Economics, from the American University of Beirut
Businessman and owner of Al Mahmoudiah Trading Co., operating in general trade and trademarks representation since 1994; and
Chairman and Board Member in several banks and companies
Non-independent member
H.E. Mr. Ala’adin Sami
Representative, ZI&IME
Co. - Saudi Arabia
Member
Appointed in 1997
Egyptian, born in 1953
Holder of a BA in Accounting and MA in Financial Management
Deputy Chairman of Al Zahid Group, Saudi Arabia; Chairman of Arab-Sudanese Truck Co.; Board Member of Arab Truck and Vehicle
Saudi Co.; and Board Member of Laguna Tourism Development Co., Egypt
Non-independent member
H.E. Mr. Karim Tawfik
Kawar
Member
Appointed in 2008
Jordanian, born in 1966
Holder of a BA in Financial Management and Computer Science, from Boston College
Former Jordanian Ambassador to the USA; Former Managers’ Committee Member at: Ideal Group, Vision Investment, Batel Co.,
Jordan, and National Equipment and Technical Services; Former Economic Advisory Board Member; Current Chairman of the Board,
Kawar Group; Board Member, JWICO; Head of Managers’ Committee at: Iris Guard, Nathealth, Kawar Power Co., King Abdullah
II Development Fund Board of Trustees, Jordan River Foundation Board of Trustees; Founder and President of the Management
Committee for the Information Technology Companies’ Society; President of Jordan Computer Society, as well as various other
initiatives, societies and groups
Independent member
126
(B) Brief Introduction of the Members of the Jordan Ahli Bank Senior Executive Management:
H.E. Mr. Marwan Awad
Chief Executive Officer/
General Manager
Appointed in 2006
Jordanian, born in 1951
Holder of a Master’s degree in Economics, from Vanderbilt University, USA; High Diploma in Economic Development, from
Vanderbilt University, USA; and a BA in Business Administration, from the University of Jordan
President of the Jordan Banking Society during the previous cycle; Former Minister of Finance; Secretary General of the Ministry
of Industry and Trade; General Manager of the Industrial Development Bank; General Manager of the Qatar Islamic Bank;
General Manager of the Middle East Investment Bank; Held several positions at the Central Bank of Jordan; and Board member
of several companies
Authored several books and publications in the fields of foreign currencies, investment, finance and economic studies
Mr. Issa Khoury
Advisor to H.E. the Chairman
Appointed in 1992
Jordanian, born in 1941
Holder of a Higher Diploma in Administration, from Birzeit University
Serves as the Deputy Chairman of the Ahli Brokerage Co. PS.
Teacher at the Catholic School in Ramallah (1962-1963); Ottoman Bank/Grindlays Bank (1963-1978); Petra Bank (1978-1992);
Business Bank and Jordan Ahli Bank (1992-to date)
Mr. Ibrahim Ghaoui
Head of Finance Department
Appointed in 2014
Jordanian, born in 1954
Holder of a Master’s degree in International Management from the University of Phoenix in the USA and a BA in Accounting
from the University of Jordan
Held several positions, including: Financial Controller – Cairo Amman Bank; and Deputy Director General/Head of Finance
Department – Palestine Telecommunications Company (PALTEL)
Ms. Lina Bakhit
Head of Ahli Capital Markets
and Investments Group
Appointed in 1998
Jordanian, born in 1963
Holder of a BA in Business Administration, from the American University of Beirut
Serves as the Chairman of the Board of the Ahli Brokerage Co. PS.
Former Head of Treasury Department, Jordan Investment and Finance Bank
Mrs. Hadil Khalaf
Head of Operations Group
Appointed in 1984
Jordanian, born in 1959
Holder of a BA in Business Administration, from the American University of Beirut
Jordan Ahli Bank (since 1997); and Business Bank (since 1990)
Mr. Hani Farraj
Head of Logistics Group and
Secretary to the Board of
Directors
Appointed in 1995
Jordanian, born in 1946
Holder of a BA in Literature and a Diploma in Management
Past experience in the fields of administration, finance and law at the Radio and Television Corporation and the Arab Radio
Stations Union for 27 years; most recently held the position of Assistant Director General for Administrative and Financial Affairs
at the Radio and Television Corporation
127
Mr. Kameel Haddad
Head of Remedial &
Recoveries and Legal Affairs
Group
Appointed in 1998
Jordanian, born in 1959
Holder of a BA in Statistics, from the University of Baghdad
Served as a Statistics Unit Manager/Deposits Department Manager, Amman Investment Bank; and Clearance Manager, Madanat
Commercial Establishment
Mr. Bashar Al Bakri
Head of Human Resources
and Strategies Group
Appointed in 2003
Jordanian, born in 1963
Holder of a BA in Business Administration and Economics, from the University of Jordan; and completed Higher Studies in
Enterprise Management
Held several positions, including: Administrative Manager for Makshaf Holding, Riyadh; and Human Resources Manager, Royal
Jordanian
Mr. Samer Abu Zayed
Head of Information
Technology and Enterprise
Programs Group
Appointed in 2009
Jordanian, born in 1963
Holder of a Master’s degree in Computer Science, from the University of Kuwait
Held several positions, including: Executive Manager of Enterprise Programs, Kuwait National Bank (2006-2009); Banking
Group Manager, International Integrated Information Systems Co. (1999-2006); Executive Manager, Middle East Investment
Bank (1995-1998); Information Systems Manager, Ahli Bank (1993-1995)
Mr. Abdul Aziz Sadaqa
Head of Corporate Banking
Group
Appointed in 2004
Jordanian, born in 1965
Holder of a Master’s degree in Banking, from the Arab Academy for Banking and Financial Sciences; and a BA in Public
Administration, from the University of Jordan
Served as a Credit Marketing Unit Manager, Jordan Bank; and Credit Unit Manager, Arab Banking Corporation
Mr. Tareq Omaish
Head of Personal Banking
Services and Branches
Management Group
Appointed in 1994
Jordanian, born in 1971
Holder of a BA in Economics and Political Science, from the University of Jordan
Jordan Ahli Bank (since 1994)
128
Mr. Khaled Al Najar
Head of Small and Medium
Enterprises (SMEs) Banking
Services Group
Appointed in 2009
Jordanian, born in 1964
Holder of a BA in Accounting, from the University of Jordan
Held several positions, including: Executive Manager, Industrial Development Bank (2001-2009); and Branch Manager, Jordan
Gulf Bank
Mr. Michael Nu’man
Head of Compliance and Risk
Management Group
Appointed in 2013
Jordanian, born in 1973
Holder of a PhD in Banking and Financial Sciences
Held several positions, including: Investment Bank (2010-2013); Assistant Director General – Capital Bank (1999-2010); and
Director – HSBC (1995-1999)
Mr. Mouin Al Bahou
Head of Credit Group
Appointed in 2004
Jordanian, born in 1967
Holder of a BA in Finance and Banking, from Yarmouk University
Held several positions, including: Cairo Amman Bank (1995-2004); and Krendilaz Bank (1992-1995)
Mr. Bassem Sleem
Head of Internal Audit Group
Appointed in 1993
Jordanian, born in 1966
Holder of a BA in Business Administration, from Yarmouk University
Held several positions, including: Bank of Credit and Commercial International (1990-1991); and Business Bank (1991-1992)
Mr. George Farraj
Head of Foreign Branches
Department
Appointed in 2005
Jordanian, born in 1969
Holder of a BA in Business Management and Economics, from the University of Jordan
Held several positions, including: Executive Director of Personal Banking Services, HSBC (2000-2004); and Cairo Amman Bank
(1992-2000)
129
4- Major shareholders, owning 5% or more of Jordan Ahli Bank’s capital:
No. Name
Total Shares
2014
Ownership
Percentage
Total Shares
2013
Ownership
Percentage
1 Byblos Bank 18,166,192 10.38% 17,128,124 10,38%
2 Abraaj Capital Co. – UAE 0 0.00% 15,388,612 9,33%
3 Social Security Corporation 17,500,000 10.00% 3,915,525 2,37%
4 Jordan Worsted Mills Co. 11,290,177 6.45% 10,098,167 6,12%
5 Jordan Investor Center Co. 9,527,030 5.44% 8,817,214 5,34%
Total
56,483,399 32.28% 55,347,642 33,54%
5 - Competition and ranking:
Jordan Ahli Bank occupies a high position among Jordanian banks and financial
institutions, with a market share of credit facilities, total deposits and total assets amounting to 6.8%, 5.6% and 5.2%
respectively. The bank operates in Jordan, Palestine and Cyprus and has an excellent market share in each of the
aforementioned locations.
6 - The Bank does not rely on specific suppliers or primary customers, internally or
externally, that form 10% of the Bank’s purchases or revenues.
7 - Neither Jordan Ahli Bank nor any of its products enjoy any government protection or
privilege pursuant to laws, regulations or any other means.
• Jordan Ahli Bank has no patents or franchises.
8 - There have been no decisions issued by the government, international
organizations or any similar institutions that have had a material impact on the Bank,
its products or competitiveness.
• The Bank adheres to specic quality standards regarding its activities, especially those related to the quality of
the services and products, in addition to the quality of internal audit activities. International quality standards
do not apply to the Bank.
9 -(A) The organizational structure of Jordan Ahli Bank and its subsidiaries:
The Bank and its subsidiaries’ organizational structures are outlined in the final pages of the annual report.
130
(B) Jordan Ahli Bank’ Employees by Numbers, Categories and Qualifications:
Less Than
High School
High
School
Community
College
Bachelor’s
Degree
Graduate
Diploma
Master’s
Degree
PhD Total
Jordan Branches 55 149 163 941 8 109 7 1432
Cyprus - 5 1 5 - 3 - 14
Palestine 4 9 22 106 - 5 - 146
Total 59 163 186 1052 8 117 7 1592
Subsidiaries:
Ahli Microfinance
Co.
6 16 32 106 1 3 - 164
Ahli Brokerage Co. 3 - 1 8 - - - 12
Ahli Financial
Leasing Co.
- 1 1 2 - 5 - 9
(C) Training and Qualification Programs for Jordan Ahli Bank’s Employees:
The Development and Training Department held 346 training programs, adding up to the equivalent of 13,592
training days, with a total of 3,584 participants, 2,427 of whom are males and 1,157 females, divided as follows:
Type of Programs
No. of
Programs
No. of Training
Opportunities
Number of
Males
Number of
Females
No. of Training
Days
Programs within the Training Center 83 1278 888 390 4311
External Programs – Inside
Jordan
Programs with Local Training
Companies and Bodies
72 140 92 48 856
Programs of the Institute of Banking
Studies
58 143 106 37 674
External Programs – Outside
Jordan
*Programs with Foreign Training
Companies and Bodies
17 28 16 12 166
Programs of the Palestine Institute
for Financial and Banking Studies
36 142 100 42 831
Implementation of the New
Banking System – DNA
T24 Training 67 1593 1021 572 6234
TOT and Soft Skills 13 260 204 56 520
Total 346
3584 2427 1157 13592
*Programs that include employees from the Cyprus branch.
131
The details of the training courses are as follows:
Training Course No. of Programs
No. of Training
Opportunities
Number of
Males
Number of
Females
Audit courses 5 12 11 1
Finance and accounting courses 29 151 121 30
Financial certificates courses 4 4 2 2
Computer courses 5 21 15 6
Language courses 9 34 27 7
Information technology courses 14 23 19 4
Marketing courses 4 11 7 4
Operations courses 12 58 44 14
Treasury and financial market courses 7 50 42 8
Credit and risk courses 28 194 144 50
Human resources courses 8 21 11 10
Compliance and legal courses 35 322 219 103
Management courses 12 43 27 16
Sales skills and customer service
courses
16 100 72 28
Banking products awareness courses 5 32 27 5
Functional courses 13 85 60 25
Technical courses 14 269 134 135
Personal courses 41 511 387 124
Seminars and workshops 9 20 15 5
Forums and awareness sessions 9 30 22 8
New banking system 67 1593 1021 572
Total
346 3584 2427 1157
10 - There are no potential risks that may have a material effect on the Bank during the
coming financial year.
11 - The Bank did not witness, during 2014, any significant process or event that
affected its position.
• The Bank’s record of achievements: as detailed and supported by gures in the Board’s report on the Bank’s
achievements.
12 - Non-reoccurring operations that do not fall under the Bank’s main activities had no
financial impact during 2014.
132
13 - Timeline of the development of Jordan Ahli Bank’s financial indicators during the last
five years:
Financial
Year
Net Shareholders’
Equity (in JD Million)
Cash Dividends
Percentage (%)
Value of Cash
Dividends
(in JD Million)
Pre-Tax Net Profit
(in JD Million)
Share Market
Price (in JD)
2009 216,2 10% 11 27,3 1,52
2010 228,7 10% 11 34,4 1,92
2011 253,1 10% 14,5 33,6 1,43
2012 268,9 - - 30,7 1,26
2013 284,3 - - 20,9 1,22
2014* 308,8 10% 17,5 40,1 1,32
In 2009, treasury shares were distributed to shareholders amounting to 5% per shareholder.
In 2011, free shares were distributed to shareholders amounting to 15% per shareholder.
In 2012, free shares were distributed to shareholders amounting to 10% per shareholder.
In 2013, free shares were distributed to shareholders amounting to 10% per shareholder.
* The General Assembly advised to distribute 10% cash among shareholders.
14 - Analysis of the Bank’s financial position
2014 2013
Return on shareholders’ equity (ROE) 11,06% 5,63%
Return on assets (ROA) 1,47% 0,60%
Return on paid-up capital 19,52% 9,70%
Credit to assets ratio 51,65% 43,96%
Credit to total deposits ratio 72,68% 75,10%
Non-performing facilities to total
facilities ratio
11,71% 12,58%
Profit after tax per employee JD 21,457 JD 9,606
15 - Jordan Ahli Bank’s future plan is listed separately in the Board of Directors’ Report.
16- Audit fees for Jordan Ahli Bank and its subsidiaries in the year 2014 amounted to JD
252,988, detailed as follows:
No. Company Name Audit Fee (in JD)
1 Jordan Ahli Bank 220,629
2 Ahli Microfinance Co. 10,500
3 Ahli Brokerage Co. 15,447
4 Ahli Financial Leasing Co. 6,412
Total 252,988
133
17 - (A) - Share ownership of Board members and their relatives:
No. Name
No. of
Shares 2014
Ownership
Percentage
No. of
Shares 2013
Ownership
Percentage
1 H.E. Dr. Omar Razzaz 2,000 0,0% - 0,0%
2
H.E. Dr. Rajai Muasher until 14/10/2014
Mrs. Huda Muasher
39,535
581,509
0,02%
0,33%
37,276
534,924
0,02%
0,32%
3
H.E. Mr. Saad Muasher
Mrs. Tania Hareb
2,091,875
131,944
1,20%
0,07%
2,066,904
121,405
1,25%
0,07%
4
H.E. Mr. Nadim Muasher until 14/10/2014
Mrs. Rania Dallal
6,363,635
93,687
3,64%
0,05%
5,999,999
41,191
3,64%
0,02%
5
Byblos Bank
H.E Dr. François Basil
18, 166,192
-
10,38%
0,0%
17, 128,124
-
10,38%
0,0%
6
Jordan Investor Center
H.E. Mr. Wasef Azar
Mrs. Abla Muasher
9,427,030
98,276
131,770
5,44%
0,06%
0,07%
8,795,000
92,661
124,241
5,33%
0,06%
0,08%
7
Muasher Investment & Trading Co.
Mr. Imad Muasher
Mrs. Nadine Halasa
Mr. Tareq Imad Muasher
461,575
6,392,572
88,104
93,335
0,26%
3,65%
0,05%
0,05%
435,200
6,027,283
83,070
88,002
0,26%
3,65%
0,05%
0,05%
8
Rajai Muasher & Brothers Co.
Mr. Rafiq Muasher
11,424
2,500,000
0,01%
1,43%
10,772
2,500,000
0,01%
1,52%
9
Social Security Corporation
Mr. Mohammed Abdallat
17,500,000
-
10,00%
0,0%
3,915,525
-
2,37%
0,0%
10
Arabia S.A.L. Holding Co.
Mr. Hani Fraij
2,686,670
18
1,54%
0,0%
2,533,146
17
1,54%
0,0%
11 Mr. Mahmoud Zuhdi Malhas 1,952,110 1,12% 1,840,561 1,12%
12
ZI & IME Co. (Saudi Arabia)
Mr. Ala’adin Sami
1,235,379
-
0,71%
0,0%
1,164,786
-
0,71%
0,0%
13 Mr. Karim Tawfik Kawar 115,115 0,07% 108,537 0,07%
134
(B) Share ownership of Senior Executive Management members and their relatives:
No. Name Title
No. of
Shares 2014
No. of
Shares 2013
1 H.E. Mr. Marwan Awad
Chief Executive Officer/ General
Manager
23,333 22,000
2
Mr. Issa Khoury
Mrs. Rana Chamieh
Advisor to H.E. the Chairman
18,481
-
17,425
2,046
3 Mr. Ibrahim Ghaoui Head of Finance Department - -
4 Ms. Lina Bakhit
Head of Ahli Capital Markets and
Investments Group
5,321 33,303
5 Mrs. Hadil Khalaf Head of Operations Group 15,253 14,382
6 Mr. Hani Farraj
Head of Logistics Group and Secretary
to the Board of Directors
21,212 20,000
7 Mr. Kameel Haddad
Head of Remedial & Recoveries and
Legal Affairs Group
11,849 11,172
8 Mr. Bashar Al Bakri Head of Human Resources Group 7,530 7,10 0
9 Mr. Samer Abu Zayed
Head of Information Technology and
Enterprise Programs Group
205 194
10
Mr. Abdul Aziz Reda
Head of Corporate Banking Group 8,861 8,355
11 Mr. Tareq Omaish
Head of Personal Banking Services and
Jordan Branches Management Group
- -
12 Mr. Khaled Al Najar
Head of Small and Medium Enterprises
(SMEs) Banking Services Group
- -
13 Mr. Michael Nu’man
Head of Compliance and Risk
Management Group
- -
14 Mr. Mouin Al Bahou Head of Credit Group - -
15 Mr. Bassem Sleem Head of Internal Audit Group 871 8,212
16 Mr. George Farraj Head of Foreign Branches Department - -
135
(C) Companies controlled by the Board members and their relatives:
No. Name Company
No. of
Shares
2014
No. of
Shares
2013
1 H.E. Mr. Saad Muasher
Al Nabil for Trade & Investment Management
Arabia Insurance Co.
Al Dawliyah for Hotels and Malls
2,482,644
2,686,670
26,458
2,086,986
1,035,364
-
2 H.E Mr. Nadim Muasher
Jordan Fabrics & Worsted Mills Manufacturing Co.
Arab International Hotels Co.
Beaches for Hotels and Spas Co.
Al Zay Ready Wear Manufacturing Co.
Ranko Public Contracting and Housing Co.
World Fashion Trading Co.
Jordan Investor Center Co.
Ahlona for Social and Cultural Work
4,464,293
1,371,838
-
335,044
1,027,848
100,226
9,527,030
-
2,916,813
925,733
1,541,000
315,899
799,400
94,499
8,795,000
-
3
Jordan Investor Center Co.
H.E. Mr. Wasef Azar
Middle East Insurance Co. 116,666 110,000
4
Muasher Investment & Trading Co.
Mr. Imad Muasher
World Fashion Trading Co.
Ahlona for Social and Cultural Work
Jordan Investor Center Co.
Arab International Hotels Co.
Ranko Public Contracting and Housing Co.
Jordan Fabrics & Worsted Mills Manufacturing Co.
Beaches for Hotels and Spas Co.
100,226
-
9,527,030
1,371,838
1,027,848
4,464,293
-
94,944
-
8,795,000
925,733
799,400
2,916,813
1,541,000
5
Rajai Muasher & Brothers Co.
H.E. Mr. Rafiq Muasher
Jordan Fabrics & Worsted Mills Manufacturing Co.
Arab International Hotels Co.
11,290,177
1,371,838
10,098,167
925,733
6 H.E. Mr. Mahmoud Zuhdi Malhas Al Mahmodieh Trading 54,901 51,764
7
ZI & IME Co. (Saudi Arabia)
H.E. Mr. Ala’adin Sami
Arab International Hotels Co.
1,371,838 825,733
8 H.E. Mr. Karim Tawfik Kawar United Insurance Co. 208,865 196,930
(D) Companies controlled by Senior Executive Management members and their relatives:
No.
Senior Executive
Management Member
Companies Controlled by the Member
Shares Owned in
Ahli Bank 2014
Shares Owned in
Ahli Bank 2013
1 Mr. Hani Farraj Al Ruwwad for Security 33,139 18,899
136
18 - The total salaries, benefits and remunerations granted to members of the Board of
Directors and Senior Executive Management in 2014 amounted to JD (5,376,484).
(A) Salaries, benefits and remunerations of members of the Board of Directors
Name
Transportation and
Travel Allowance
Committees
Meeting
Annual
Remuneration
Total
H.E. Dr. Omar Razzaz
from 15/10/2014
H.E. Dr. Rajai Muasher
until 14/10/2014
1,500
6,834
500
200
0
5,000
2,000
12,034
H.E. Mr. Saad Muasher
from 15/10/2014
H.E. Mr. Nadim Muasher
until 14/10/2014
9,525
7,200
500
200
0
5,000
10,025
12,400
H.E. Mr. Ahmed Adel Badreddin
Representative, Abraaj Capital SPV - Dubai
3,000 0 3,132 6,132
H.E. Dr. François Basil
from 15/10/2014
Representative, Byblos Bank
H.E. Dr. Sami Haddad
until 14/10/2014
1,800
2,400
0
0
0
3,389
1,800
5,789
H.E. Mr. Wasef Azar
Representative, Jordan Investor Center Co.
7,200 1,600 5,000 13,800
H.E. Mr. Imad Muasher
Representative, Muasher Investment & Trading Co.
7,200 500 5,000 12,700
H.E. Mr. Rafiq Muasher
Representative, Rajai Muasher & Brothers Co.
7,200 400 5,000 12,600
H.E. Mr. Hani Fraij
Representative, Arabia S.A.L. Holding Co.
7,200 0 5,000 12,200
H.E. Mr. Ala’adin Sami
Representative, ZI & IME Co. (Saudi Arabia)
7,200 200 5,000 12,400
H.E. Mr. Mohammed Abdallat
Representative, Social Security Corporation
7,200 900 5,000 13,100
H.E. Mr. Mahmoud Zuhdi Malhas 7,200 0 5,000 12,200
H.E. Mr. Karim Kawar 7,200 1,100 5,000 13,300
137
19 - Total donations granted to various parties during 2014 amounted to JD (234,564),
and are distributed as follows:
Donations Granted During 2014
Name
Amount
National associations 90,542
Sports and cultural clubs 21,550
Religious activities 9,300
Art and cultural forums 34,260
Social development funds and charity organizations 62,272
Cultural centers/universities/schools/education 5,440
Unions 6,000
Governorates and official departments 3,200
Political parties 2,000
Total 234,564
20 - Jordan Ahli Bank did not enter into any agreement, project, or commitment with
the Chairman of the Board, Board Members, Director General, bank employees, or
any of their relatives.
*Facilities granted to Board members under non-preferential terms:
Board Members
Balance
31/12/2014
(in JD)
Cash Securities
(in JD)
H.E. Mr. Nadim Muasher 1,915,046 0
Mr. Saad Muasher 479,279 0
Jordan Investor Center Co.
(A) Within the Kingdom:
(B) Outside the Kingdom:
35,791
3,013,250
0
0
H.E. Mr. Rafiq Muasher
(A) Within the Kingdom:
(B) Outside the Kingdom:
265,376
709,000
0
0
Muasher Investment & Trading Co. 508,353 0
H.E. Mr. Imad Muasher 815,362 0
H.E. Mr. Karim Kawar 90,000 4,500
138
*Facilities granted to relatives of Board members:
Board Members
Balance
31/12/2014
(in JD)
Cash Securities (in
JD)
(A) Facilities related to H.E. Mr. Nadim Muasher:
Ranko Public Contracting and Housing Co. 1,569,808 -
M/S Nadim and Imad Muasher, and Nabil Muasher’s sons
Guarantees
985,975
5,000
-
Jordan Fabrics & Worsted Mills Manufacturing Co.
Guarantees
0
250,000
500,000
Yousef Muasher Sons Co. 83,754 -
World Fashion Trading Co.
Guarantees
571,469
223,772
23,703
Business Tourism Co.
Guarantees
2,972,034
11,000
7,100
Al Remah Contracting and Enterprise Management
Guarantees
0
6,000
600
Interior Design Studio
Guarantees
119,446
5,524
4,354
Beaches for Hotels and Spas
Guarantees
498,395
50,000
498,390
Arab Real Estate Co.
Al-Aydi Al-Karima for Agricultural Products
Guarantees
816,467
151,584
10,000
-
500
-
(B) Facilities related to Rajai Muasher & Brothers Co.:
Ahlia Stock Exchange Co.
Beta Housing Co.
175,634
903,691
-
-
(C) Facilities related to the Jordan Investor Center Co.:
Jordan Tourism & Hotels Education
Guarantees
387,628
1,000
-
49,185
(D) Facilities related to H.E. Mr. Saad Muasher:
Al Nabil for Trade & Investment Management
Ibrahim Nabil Muasher
Yousef Nabil Muasher
697,268
696,700
182,847
-
-
-
(E) Facilities related to H.E. Mr. Karim Kawar:
Amin Kawar & Sons Co. 533,119
4,500
Arab Directory for Websites
Kawar Energy Co.
146,214
145,105
-
-
*According to the definition of “relative” as defined by the Central Bank of Jordan,
regulation number 9/2001, dated 1/8/2001.
139
21 - (A) Jordan Ahli Bank supports environmental conservation activities by providing
environmentally friendly loans through the “Go Green” card to finance environmentally
friendly products at 0% interest rate and affordable installments. This is all carried out
through a network of accredited traders.
The Bank also banned smoking in all its branches and managerial departments.
(B) Jordan Ahli Bank contributes to supporting members of the local community in
various areas, as detailed below:
Bank’s Contribution to Environmental Conservation and Local Community Service in 2014
Name Amount
Local associations dedicated to community members 8,500
The Zakat Fund/ Torood Al Khair/ Mawaed Rahman 30,000
The Children’s Museum 53,100
Studies and research centers 11,120
Total 102,720
140
The Bank’s Commitment to Corporate Governance Requirements
Based on the regulations of the Central Bank of Jordan and the Jordanian Securities Commission, and under the
supervision of the Board of Directors’ various offshoot committees, the Bank’s executive management continued
to monitor the full implementation of the Corporate Governance Code adopted by the Bank. In this respect, the
Bank exhibited its strong commitment to the regulations, adherence to governance rules, as well as continuous
supervision thereof so as to ensure compliance with the Code, including the adoption of the Board of Directors’
Charter, as well as the disclosure and supervision policy to ensure compliance with the best local and international
rules and practices in this regard. The committees also continued to perform their functions according to the
provisions of the Corporate Governance Code. These committees are detailed as follows:
(A) - Corporate Governance Committee:
which comprises:
1- H.E. Dr. Omar Razzaz Chairman of the Committee
2- H.E. Mr. Saad Muasher Deputy Chairman of the Committee
3- H.E. Mr. Nadim Muasher Member
4- H.E. Mr. Wasef Azar Member/Representative, Jordan Investor Center Co.
5- H.E. Mr. Mohammed Abdallat Member/Representative, Social Security Corporation
Duties of the Committee:
- The Corporate Governance Committee, formed by the Board, will be comprised of a chairman and two non-
executive members.
- The Committee shall supervise the development of the Bank’s Corporate Governance Code and shall oversee
its implementation. In addition, it shall ensure that effective follow-up mechanisms are in place to facilitate
the implementation process across all managerial levels. The Committee shall also supervise all updates to the
Code, in accordance with the directives of the Central Bank of Jordan and with the approval of the Board.
(B) - Audit Committee:
which comprises:
1- H.E. Mr. Wasef Azar Chairman of the Committee/Representative, Jordan Investor Center Co.
2- H.E. Mr. Karim Kawar Member
3- H.E. Mr. Mohammed Abdallat Member/Representative, Social Security Corporation
Duties of the Committee:
- The Audit Committee will be comprised of three non-executive members, provided that at least two members possess
academic qualifications and/or practical experience in the field of financial management. In addition, no less than
two members should be independent.
- The Committee shall carry out the responsibilities and prerogatives that were assigned by the Banking Law and any
other relevant legislation, which include the review of the following:
(1) The scope, results and adequacy of external and internal audits of the Bank.
(2) Accounting issues with material effect on financial statements.
(3) The Bank’s internal monitoring and control systems.
- The Committee shall submit recommendations to the Board regarding the appointment, termination, remuneration,
and other relevant contractual issues related to the external auditor. It also evaluates the objectivity of the external
auditor, while taking into account any actions undertaken outside the realm of auditing.
- The Committee shall have the authority to have access to any information from the executive management and
to call on any executive staff or Board member to attend its meetings. These terms should be documented in the
Committee’s Charter, comprising all its duties and responsibilities.
- The Committee shall meet with the external auditor and the Head of Compliance Department in the absence of
executive management at least once per year.
It is agreed that the responsibilities of the Audit Committee do not absolve the Board or executive management of their
responsibilities with respect to supervising the effectiveness of the internal monitoring and control systems.
141
(C) - Risk Management Committee:
which comprises:
1- H.E. Mr. Saad Muasher Chairman of the Committee
2- H.E. Mr. Nadim Muasher Member
3- H.E. Mr. Hani Fraij Member/Representative, Arabia Insurance Co. – Lebanon
4- H.E. Mr. Rafiq Muasher Member/Representative, Rajai Muasher & Brothers Co.
5- H.E. Mr. Mohammed Abdallat Member/Representative, Social Security Corporation
Duties of the Committee:
- The Risk Management Committee shall review all risks to which the Bank is exposed. The Committee shall be
comprised of Board members and may also include members of the executive management.
- The Committee shall review the Bank’s risk management policies and strategies before being endorsed by the
Board. The Bank’s executive management is responsible for implementing these strategies and developing
policies and procedures for managing the various types of risks.
- The Bank’s executive management shall propose a structure for the Risk Management Group and its
development process. In this regard, the suggested structure shall be reviewed by the Committee and must be
endorsed by the Board.
- The Committee shall stay abreast of the rapid developments and many complexities which may have an impact
on the Bank. The committee shall therefore submit regular reports on these developments to the Board.
(D) - Nominations and Remunerations Committee:
which comprises:
1- H.E. Mr. Wasef Azar
(Non-independent) Chairman of the Committee
2- H.E. Mr. Rafiq Muasher
(Non-independent) Member/Representative, Rajai Muasher & Brothers Co.
3- H.E. Mr. Ala’adin Sami
(Non-independent) Member/Representative, ZI & IME Co. (Saudi Arabia)
4- H.E. Mr. Mahmoud Malhas
(Non-independent) Member
Duties of the Committee:
- The Nominations and Remunerations Committee shall be formed by the Board, consisting of its own
independent members.
- The Committee shall put forward the names of nominated Board members for consideration, while taking nominees’
abilities and qualifications into consideration. In the event of a re-nomination, the nominees’ attendance record, and
the quality and effectiveness of their participations during Board meetings shall also be taken into consideration.
- The Committee is responsible for determining whether or not a nominee is qualified as an independent member as
defined by the Central Bank of Jordan’s instructions.
- The Committee shall assess the Board’s effectiveness according to specific standardized criteria.
- The Committee is responsible for providing Board members with abstracts and background information on various
important bank issues upon their request. The Committee must also ensure that the Board is always up to date on the
latest issues related to the banking industry.
- The Committee shall recommend the extent of remunerations (including the monthly salary and other benefits to
be granted to the CEO/Director General). The Committee shall also review the remunerations (including salaries)
granted to the remainder members of the executive management.
- The Committee shall assume the responsibility of devising a remunerations policy that ensures that bonuses/salaries
are sufficient to attract and retain qualified personnel to work at the Bank. Remuneration policies should be in line
with those offered by other comparable banks in the market.
142
(E) Executive Committee:
which comprises:
1- H.E. Dr. Omar Razzaz Chairman of the Committee
2- H.E. Mr. Saad Muasher Deputy Chairman of the Committee
3- H.E. Mr. Nadim Muasher Member
4- H.E. Mr. Rafiq Muasher Member/Representative, Rajai Muasher & Brothers Co.
5- H.E. Mr. Wasef Azar Member/Representative, Jordan Investor Center Co.
6- H.E. Mr. Karim Kawar Member
7- H.E. Mr. Imad Muasher Member/Representative, Muasher Investment & Trading Co.
8- H.E. CEO/Director General Member
Duties of the Committee:
- The Committee shall review credit facilities that surpass the Senior Credit Committee’s authority, as well as the
requests that were subject to reservations by any of the committee’s members.
- The Committee shall write off from outstanding (and other types of) interest, overdue interest payments on
discounted promissory notes, outstanding due guaranteed withdrawals, unpaid withdrawals, and withdrawals from
the special reserve, as well as any amount in excess of the authority of the CEO/Director General and the Chairman.
This must occur upon the recommendation of the Credit Committee and the CEO/Director General.
Board and Committees’ Meetings during 2014:
(A) – The Board held ten meetings during 2014.
(B) – The Audit Committee held six meeting during 2014, as well as a meeting with the Audit Office – Deloitte
& Touche without the presence of the Bank’s executive management, as well as another one with the Risk
Management Department.
(C) – The Nominations and Remunerations Committee held three meetings during 2014.
(D) – The Risk Management Committee held one meeting during 2014.
(E) – The Executive Committee held seven meetings during 2014.
(F) – The Corporate Governance Committee held one meeting during 2014.
143
Corporate Governance Code*
Preamble
According to the definition of the Organization for Economic Cooperation and Development (OECD), corporate
governance organizes the rights and responsibilities of those in charge of running a corporation, such as the
Board of Directors, shareholders and other stakeholders. It also illustrates the mechanism used to determine
the corporation’s objectives as well as the means needed to achieve and monitor the implementation of these
objectives. Therefore, quality corporate governance is the key that provides each member of the Board and
of the executive management with the motivation needed to achieve these goals. It also provides the drive to
initiate an effective control system, thereby helping the corporation to optimize the use of its resources.
Corporate governance’s importance to the Bank stems from the fact that it provides a base upon which the
corporation’s future performance is built. It aims to instill confidence in the Bank as a recipient of depositors’
and shareholders’ funds, and to enable it to successfully develop the banking services offered in Jordan, thereby
contributing to a more efficient national economy. Accordingly, the Board of Directors decided to develop the
“Corporate Governance Code”, which abides by all of Central Bank of Jordan’s guidelines and international best
practices. The code focuses on the four following guiding principles:
- Fairness in treatment of all stakeholders (e.g. shareholders, depositors, bank employees and regulatory authorities).
- Transparency and disclosure, allowing stakeholders to assess the status and financial performance of the Bank.
- Accountability in relations between the Bank’s executive management and the Board of Directors, between the
Board of Directors, shareholders, the Board of Directors, and other relevant entities.
- Responsibility are achieved through a clear delegation of authority.
* An integrated and comprehensive Code is being prepared and developed according to the banks’ corporate
governance instructions no. (58/2014) issued by the Central Bank of Jordan on 30/9/2014.
144
Introduction
Jordan Ahli Bank strives to achieve the goals of its shareholders, customers, and employees while conforming to
the highest ethical standards in professional banking conduct. It values excellence in performance, accurate and
transparent disclosure of operations and absolute compliance to the rules, regulations, and guidelines that govern the
Bank’s activities.
In an affirmation of the main principle outlined above, the Jordan Ahli Bank’s “Corporate Governance Code” was
prepared and adopted by the Board of Directors and implemented as of 1/1/2008. The Code documents a number of
procedures that were previously applied at the Bank. However, by including such procedures in the Code, the Bank
has made its policies and procedures available to all parties interested in dealing with the Bank. Concerned parties
can now be reassured of the Bank’s main guiding principles, as well as its control, internal audit, transparency and
disclosure mechanisms.
In adopting the Corporate Governance Code, the Board of Directors assures its complete compliance with the Code’s
content and its absolute support of its application. The Corporate Governance Committee, an offshoot of the Board,
will be responsible for following up on the Code’s application and on the accountability of all responsible parties,
in their various administrative positions, as mentioned in the Code, to ensure that all of the provisions are being
effectively applied as outlined.
The Corporate Governance Code is being published as part of the Bank’s annual report. Any updated versions will be
published on the Bank’s website. The Code’s provisions apply to the branches operating within the Hashemite Kingdom
of Jordan, as well as to branches operating abroad to the extent permitted by the laws and regulations of the countries
in which they operate. In the case of a contradiction, the laws and regulations of the country in which the branch
operates shall be applied.
Amendments to the Code are made according to legislative and regulatory developments under the supervision of the
Board’s Corporate Governance Committee. Amendments enter into effect after being endorsed by the Board.
In an effort to strengthen the culture of corporate governance, as part of the Bank’s approval process for granting
credit, it will evaluate the corporate governance standards of its corporate customers, particularly those from public
shareholder companies. This will thereby guarantee the assessment of each customer’s risks, determining their
strengths and weaknesses in respect of practices related to governance.
145
Definitions
The following terms as used throughout the Code will have the following meanings:
Bank: Jordan Ahli Bank.
Code: The Jordan Ahli Bank Corporate Governance Code.
Board: The Jordan Ahli Bank Board of Directors.
Chairman: Chairman of the Jordan Ahli Bank Board of Directors.
Deputy Chairman: Deputy Chairman of the Jordan Ahli Bank Board of Directors.
Board members: Members of the Jordan Ahli Bank Board of Directors.
CEO/Director General: CEO/Director General of the Jordan Ahli Bank.
Secretary: Jordan Ahli Bank Board of Directors’ Secretary.
Executive member (of the Board): Board member who occupies a position at the Bank.
Independent member* (of the Board): Board member (whether in his/her personal capacity or as a
representative of a legal person) with no relationship to the Bank
outside of board membership, rendering him/her with impartial
judgment, unaffected by external factors.
Board Committees: Committees formed by Jordan Ahli Bank listed in the Code.
Executive Management: The Jordan Ahli Bank executive management.
* The minimum qualifications required of an independent member (in accordance with the Central Bank of Jordan’s definition)
are as follows:
1. That the member has not worked in the Bank for at least three years prior to the date of his/her candidacy for membership in
the Board.
2. That the member must not be related to any administrative official above the secondary degree.
3. That the member does not receive any salary or compensation from the Bank with the exception of what he/she receives due
to membership on the Board.
4. That the member is not a Board member or owner of a company that deals with the Bank, with the exception of interactions
initiated through the regular services or operations of the Bank with its customers; these regular services shall be governed by
the same conditions governing similar transactions with any other party and without any preferential terms.
5. That the member is not a partner or employee of the external auditor during the three years prior to his/her candidacy for
membership of the Board.
6. That his/her contributions to the Bank do not form a significant interest to the Bank’s capital and that he/she is not an ally to
another shareholder.
146
1- Board of Directors:
1/1 General Principles:
1. The Board shall bear all responsibility for the Bank’s operations and its financial integrity. It must ensure that the
Bank meets the requirements of the Central Bank of Jordan, as well as the interests of its shareholders, depositors,
creditors, employees, and other stakeholders. It is also responsible for ensuring that the Bank is run prudently and
within the framework of the relevant rules, regulations, and internal policies.
2. The Board shall guarantee the commitment of each of its members toward the Bank and all of its shareholders, and
not towards any shareholder in particular.
3. The Board shall draft the strategic objectives of the Bank and monitor the actions of the executive management,
which is responsible for the Bank’s day-to-day operations.
4. The Board shall ratify inspection and internal control policies, and ensure their effectiveness. The Board shall also
ascertain the Bank’s measure of adherence to its strategic plan, policies, and procedures it has adopted or that are
required under law, and regulations issued thereafter. In addition, the Board shall ensure that all risks undertaken
by the Bank have been managed soundly.
1/2 Chairman of the Board and Chief Executive Officer (CEO)/Director General:
1. The posts of Chairman of the Board and the CEO/General Manager shall be separated. The holders of each post
should bear no direct relation to each other, hence they should not be related above the secondary degree.
2. The division of responsibilities between the two posts listed above will be according to the directives of a written
manual endorsed by the Board and revised when necessary.
3. If the Chairman of the Board holds executive powers the Bank shall appoint an independent member, such as the
Deputy Chairman to ensure the presence of an independent spokesperson on behalf of shareholders. The status of
the Chairman whether executive or non-executive, shall be disclosed.
1/3 Role of the Chairman of the Board:
1. The Chairman shall establish a constructive relationship between the Board and the Bank’s executive management,
and between executive members and non-executive members.
2. Through Board meetings, the Chairman shall promote a culture encouraging constructive criticism on issues of
which Board members display differences of opinion, and encourage members to debate and vote on said issues.
3. The Chairman shall make sure that all Board members and shareholders receive relevant information in a
timely manner.
4. The Chairman shall ensure that the Bank operates according to high corporate governance standards.
1/4 Board Composition:
1. When forming the Board, diversity in practical, professional experience, and specialized skills shall be taken into
consideration.
2. The Board shall consist of executive members (members who occupy positions within the Bank) and non-executive
members (members who do not occupy positions within the Bank), while taking into account that it is preferable for
the majority of the board to consist of non-executive members.
3. Among the Board’s non-executive members there should be at least three independent members; an appropriate
number of independent members should be maintained to ensure that decisions are made objectively. This policy
aims at ensuring high standards of internal controls, thereby allowing decisions to be weighed depending on their
effects on all parties, including executive management and key shareholders, and that all decisions are made to
serve the best interests of the Bank.
147
1/5 Organization of Board Operations:
1. The responsibilities of each Board member should be specific and clearly outlined in accordance with relevant legislation.
The Bank must also provide each Board member with a document illustrating his/her rights, responsibilities and duties
upon his/her election.
2. Board members must always be up to date on developments within the Bank and local and international banking sectors.
The Bank must provide Board members with a suitable abstract on its operations upon each member’s appointment
throughout his/her tenure or at any other time upon his/her request.
3. Board members must be informed in writing on the procedures involved in all Bank operations that require the Board’s
approval (including but not limited to the Board’s authority regarding granting loans in excess of a certain amount, its
authority regarding transactions with related parties or any other banking operations under the jurisdiction of the Board).
4. The Board must develop an organizational structure illustrating the administrative hierarchy (including Board committees
and executive management). The aforementioned structure must be disclosed to the public.
5. Members of the Board and of the Board committees must have access to direct contact with the executive management.
6. Executive management shall propose the topics that they deem relevant for the agenda of every Board meeting. This is to
ensure the comprehensiveness of topics discussed at Board meetings, which should occur no less than six times a year.
7. The bank shall provide Board members with sufcient information, and with sufcient notice, before Board meetings,
allowing them to make appropriate decisions. If necessary, members of the Board and its committees have the authority to
utilize external resources to assist them in performing their designated duties to the fullest.
8. The Secretary of the Board must record all the conversations, suggestions, and votes of Board members during their meetings.
9. The Secretary of the Board must ensure that Board members adhere to the Board’s approved protocol and that information is
successfully circulated between members of the Board, its committees and executive management. The Secretary must also
determine Board meeting dates, as well as record the minutes of the meetings.
10. The Board shall officially define the duties of the Secretary of the Board in writing, in accordance with the level of
responsibilities outlined above. Any decision to appoint or remove a Secretary must be a decision of the Board.
1/6 Board Activities:
1/6/1 Appointments and Replacements:
1. The Board shall appoint a CEO/Director General who possesses integrity skills, technical competence and
banking experience.
2. The approval of the Board must be obtained for appointments made to specific positions, such as Head of the
Financial Management Group and Head of the Internal Audit Group. The Board must ensure that appointees
to these positions possess the required experience.
3. The Board shall adopt succession plans for the Bank’s CEO that includes the qualifications and requirements
they must possess.
1/6/2 Self-Assessment and Evaluation of the Performance of the Chief Executive Officer
(CEO)/Director General:
1. The Board, through the Nominations and Remunerations Committee, shall evaluate its performance as a
whole at least once per year.
2. The Board shall evaluate the CEO/Director General annually.
1/6/3 Planning, Control and Audit Systems, Code of Ethics and Conflict of Interests:
1. The Board shall determine the Bank’s objectives and guide executive management in drafting a strategy to
achieve the said goals.
2. The executive management shall lay out action plans in accordance with the Bank’s strategies and
cooperation of all its departments. The Board shall endorse the devised strategy and action plans and ensure
that the executive management monitors the results achieved accordingly and takes corrective measures
where necessary. The preparation of the estimated budget shall be considered part of the short-term
planning and performance evaluation processes.
148
3. The Board must ensure that the Bank operates with the utmost integrity. To achieve this, the Bank will provide a guide to
its policies as well as a Code of Ethics, which includes the Bank’s definition of a conflict of interest. The Code also includes
the definition of transactions undertaken by Bank employees for their own personal benefit, which are based upon internal
information on the Bank received through the access granted to them in virtue of their powers. These policies and the Code
of Ethics will be presented to all Bank employees and Board members. Board members must approve said documents, as well
as their dissemination to the public. The following policies must include the below:
a- Rules and regulations governing operations with relevant parties, whether between the Bank and its employees, members
of its Board, their companies or relevant parties, including those involved in mutual lending or trading transactions with the
Bank. These rules must include provisions ensuring that Board members and their companies are granted a level of credit
in accordance with prevailing market rates. In this regard, they shall not receive any preferential treatment or participate in
any meeting in which their personal transactions or dealings are discussed or come to a vote. Furthermore, Board members’
personal bank transactions shall be disclosed in the Bank’s annual report. Bank departments concerned with control systems
and internal audit must ensure that all stakeholders’ procedures are conducted according to this policy.
b- Clear audit systems in place prohibiting the Board and Bank employees from exploiting internal information for their own
personal benefit.
4. The Bank must possess written policies, covering all of its banking activities, which must be circulated to employees of all
administrative levels. These policies must be regularly revised to include any amendments or changes to rules, regulations,
economic conditions and any other Bank-related issues.
2- Board Committees:
2/1 General Principles:
1. The Board shall form offshoot committees with specific goals, awarding them with authorities and responsibilities for a
specified time period. These committees shall submit periodic reports to the Board. A charter shall be prepared outlining
the mechanism of these committees’ formation, while describing their objectives, duties, and authorities. The formation of
Board committees shall not absolve the Board from their direct responsibility towards all Bank-related matters.
2. The principle of transparency shall be upheld upon the appointment of Board committee members. The names of committee
members and a summary of their duties and responsibilities shall be disclosed within the Bank’s annual report.
3. The Board may merge the duties of multiple committees if this is appropriate or more administratively convenient.
2/2 Audit Committee:
1. The Board shall form an Audit Committee consisting of three non-executive members. At least two committee members must
hold academic credentials and/or professional experience in the field of financial management. At least two members of the
committee must be independent members.
2. The Audit Committee shall exercise the responsibilities and powers allocated to it under the Banking Law and any other
relevant legislation, including a review of the following:
- The scope, results and adequacy of the Bank’s internal and external audits.
- Accounting issues with a material impact on financial statements.
- The Bank’s internal audit and inspection systems.
3. The Audit Committee shall provide recommendations to the Board on decisions regarding the appointment, termination,
remuneration and any other contractual issues related to the external auditor. The committee shall also assess the objectivity
of the external auditor, while taking any relevant actions taken outside of the scope of his/her auditing into consideration to
ensure objectivity.
4. The Audit Committee has the authority to obtain any information it deems necessary from the executive management, as
well as the right to summon any executive or Board member to attend its meetings. This must be stated in the committee’s
charter, which specifies its relevant duties and responsibilities.
5. The Audit Committee shall meet with the external auditor, internal auditor, and the compliance manager at least once per
year, in the absence of executive management.
6. It is agreed upon that the responsibilities allocated to the Audit Committee do not absolve the Board or the Bank’s executive
management of their responsibilities to monitor the adequacy of the Bank’s internal audit and inspection systems.
149
2/3 Nominations and Remunerations Committee:
1. The Board shall form the Nominations and Remunerations Committee from among its own members. The committee
shall consist of at least three non-executive members, and the majority of members (including its Chairman) must be
independent members.
2. The Nominations and Remunerations Committee shall put forward the names of nominated Board members, while taking
nominees’ abilities and qualifications into consideration. In the event of a re-nomination, the nominee’s attendance record
and the quality and effectiveness of his/her participations during Board meetings shall be taken into consideration.
3. The Nominations and Remunerations Committee is responsible for determining whether or not a nominee is qualified as an
independent member based on the definition provided by the Central Bank of Jordan.
4. The Nominations and Remunerations Committee shall assess the Board’s effectiveness according to specific, standard
criteria, which should be objective and include comparisons with other banks. The committee shall also assess the
soundness and accuracy of the Bank’s financial statements, as well as its compliance with regulatory requirements.
5. The Nominations and Remunerations Committee is responsible for supplying Board members with summaries and
background information on various important Bank issues upon their request. The committee must ensure that the Board
remains continuously up to date with the latest issues related to the banking industry.
6. The Nominations and Remunerations Committee shall recommend the extent of remuneration (including monthly salary
and other benefits to the CEO/Director General). The committee shall also review remuneration (including salaries)
granted to the remainder members of the executive management.
7. The Nominations and Remunerations Committee shall assume the responsibility of devising a remunerations policy that
ensures bonuses/salaries that are sufficient to attract and retain qualified personnel to work at the Bank. Remuneration
policies should be in line with the bonuses/salaries offered by other, comparable banks in the market.
8. A summary of the Bank’s remuneration policy shall be disclosed in the Bank’s annual report, detailing the remunerations
received by each board member and the maximum salaries paid to non-board member executives throughout the year.
2/4 Risk Management Committee:
1. The Risk Management Committee, which will consist of Board members and may also include members of executive
management, shall evaluate the risks to which the Bank is exposed.
2. The Risk Management Committee shall review the Bank’s risk management policies and strategies before they are adopted
by the Board. The executive management shall uphold the responsibility to carry out these strategies and to develop
policies and procedures in order to manage various types of risks.
3. The Bank’s executive management shall propose and develop an organizational structure for the Risk Management Group.
The proposed structure shall be reviewed by the Risk Management Committee and adopted by the Board.
4. The Risk Management Committee shall remain up to date on the rapid developments and the growing complexities
that may arise within the Bank’s risk management process. The committee shall prepare periodic reports on these
developments, to be submitted to the Board.
2/5 Corporate Governance Committee:
1. The Corporate Governance Committee shall consist of the Chairman of the Board and two non-executive members.
2. The Corporate Governance Committee shall supervise the preparation of the Bank’s Corporate Governance Code. It shall
also manage its application and ensure the existence of effective evaluation mechanisms to ensure that relevant provisions
are implemented at all administrative levels. It shall also supervise the updating process of the Code, according to the
Central Bank of Jordan’s directives and with the approval of the Board.
3- Inspection and Internal Control:
3/1 General:
1. The Bank’s Inspection and Internal Control System’s organizational structure shall be reviewed by the internal auditor and
external auditor at least once per year.
2. The Board shall include within the Bank’s annual report an account of the adequacy of the Bank’s Inspection and Internal
Control System with regards to financial reporting. The report should include the following:
a. A paragraph describing the executive management’s responsibility to establish and maintain an Inspection and Internal
Control system on the Bank’s financial reporting.
b. A paragraph outlining the basis upon which the executive management assessed the effectiveness of the Inspection and
Internal Control System.
c. The executive management’s assessment of the effectiveness of the Inspection and Internal Control System as is on the date
that appears on financial statements included in the Bank’s annual report.
150
d. The disclosure of any material weaknesses of fundamental value in the Inspection and Internal Control System (a material
weakness is defined as any clear point of weakness or group of weaknesses that could potentially result in the inability to
prevent the creation or detection of a false, significant financial statement).
e. The external auditor’s report, in which he/she expresses his/her opinion on the executive management’s assessment of the
effectiveness of the Inspection and Internal Control System.
3. The Bank shall establish procedures that allow employees to submit immediate, confidential reports in the case of concerns
regarding potential irregularities. These procedures shall allow for an independent investigation and follow-up of these
concerns. The Audit Committee shall supervise the implementation process of these procedures.
3/2 Internal Audit:
1. The Bank shall provide the Internal Audit Group with a sufficient cadre of qualified human resources who will be trained and
compensated appropriately. The Internal Audit Group has the right to obtain any information and to contact any employee
within the Bank, and is also granted the necessary powers to perform the duties assigned to it in the required manner. The
Bank will also be in charge of documenting and circulating the Audit Group’s duties, powers, and responsibilities within the
Internal Audit Charter, which has been approved by the Board, among all Bank’s departments.
2. The Internal Audit Group shall submit its reports to the Chairman of the Audit Committee.
3. Internal auditing employees may not be assigned any executive responsibilities. The Internal Audit Group is responsible for
proposing the structure and scope of an internal audit, and must also inform the Audit Committee of the presence of any
potential conflict of interests.
4. The Internal Audit Group shall perform its duties and prepare its report in full with no external interference. The Group has
the right to discuss its reports with the departments that were audited.
5. The main responsibilities of the Internal Audit Group—whose operations should be based on a risk-based audit—are to
review the following on a comprehensive manner:
- The Bank’s financial reporting operations (so as to ensure the accuracy, reliability, and timeliness of key information regarding
financial, executive and procedural issues).
- Compliance with the Bank’s internal policies and standards, as well as international procedures, laws, and relevant regulations.
3/3 External Audit:
1. The position of external auditor shall be rotated regularly among audit firms. If this policy becomes difficult to apply
in practice, the Bank shall request the regular rotation of the principal partner responsible for carrying out the Bank’s
external audit.
2. The external auditor shall provide the Audit Committee with a copy of his/her report. The external auditor shall meet with
the Audit Committee in the absence of executive management at least once per year.
3/4 Risk Management:
1. The Bank’s Risk Management Group shall submit its reports to the Risk Management Committee. However, day-to-day
transactions shall be reported to the CEO/Director General.
2. The responsibilities of the Bank’s Risk Management Group include the following:
a. Analyzing all risks, including credit risks, market risks, liquidity risks, or operational risks.
b. Developing methodologies for the measurement and control of each type of risk.
c. Providing recommendations to the Risk Management Committee on appropriate risk limits and approvals, while submitting
reports and documenting exceptions to risk management policies.
d. Providing the Board and senior executive management with information on the Bank’s risk measurement and its risk profile.
(The Board shall, at every meeting, regularly review the Bank’s statistics on the quality and quantity of risk.)
e. Providing information on the Bank’s risks to be disclosed or published for the public.
3. The Bank’s other committees, such as the Credit Committee, Assets and Liabilities Management Committee/Treasury, and
the Operational Risk Committee, will assist the Risk Management Group in the performance of its duties, according to the
authority granted to each committee.
4. The Bank’s annual report will include information on the Risk Management Group regarding its structure, nature of
operations and latest developments.
151
3/5 Compliance:
1. An independent Compliance Department shall be established in accordance with the relevant Central Bank of Jordan’s
directives.
2. The Compliance Department will prepare an effective methodology to ensure that the Bank is in compliance with all
valid laws and legislations, as well as any other relevant directives. The Bank will document the duties, authorities and
responsibilities of the Compliance Department, and then circulate the said document within the Bank.
3. The Board will adopt and monitor the compliance policy. The Compliance Department will be responsible for its preparation,
development, and application within the Bank.
4. The Compliance Department shall report on the outcome of its operations and its monitoring of compliance to the Board or
its offshoot committee. A copy will be sent to the executive management, in accordance with the relevant directives of the
Central Bank of Jordan.
4 - Relations with Shareholders:
1. The Bank will take steps to encourage shareholders, particularly minority shareholders, to attend the annual meeting of the
General Assembly and vote either in person, or, in the event of their absence, by proxy.
2. The Chairman of the Audit Committee, Nominations and Remunerations Committees, and any other offshoot committees of
the Board shall attend the annual meeting of the General Assembly.
3. Representatives of the external auditors shall attend the annual meeting of the General Assembly in order to answer any
questions the attendees may have regarding the auditing process and audit report.
4. Separate voting shall be taken into consideration on every issue raised during the General Assembly’s annual meeting.
5. In accordance with the Companies’ Law, Board members shall be elected or re-elected during the annual meeting of the
General Assembly. Voting on the external auditor shall also be carried out during the same meeting.
6. Following the conclusion of the General Assembly’s annual meeting, a report shall be prepared and provided to shareholders.
The report must contain the comments made during the meeting and the meeting’s outcomes, including voting results,
shareholder inquiries and the responses provided by executive management.
5 - Transparency and Disclosure:
1. The Bank is committed to disclosure, which shall occur in accordance with International Financial Reporting Standards
(IFRS) and in line with current Central Bank of Jordan’s directives, issued under the Bank Law and other relevant legislation.
The executive management is responsible for following up on potential changes to international financial reporting practices
and the extent of transparency required of financial institutions. Executive management must also ensure the application of
said standards, thereby reinforcing the Bank’s commitment to disclosure.
2. The Bank shall commit to providing valid and meaningful information on its activities to the Central Bank of Jordan, its
shareholders, its depositors, other banks and the public in general, while focusing on issues that may be of concern to
shareholders. The Bank must periodically disclose this information and make it available to the public.
3. The Bank shall clarify in its annual report its responsibility to ensure the accuracy and adequacy of its financial statements
and of the information stated within the report.
4. The Bank is committed to keeping its lines of communication open to regulatory authorities, shareholders, depositors, other
banks and the public in general. These communication channels shall be established through the investors’ relations, the
dissemination of the annual report, the quarterly and periodic financial reports, as well as the Board’s report on the Bank’s
stock exchange and financial position during the year. This is also done by holding regular meetings and submitting regular
summaries to shareholders. Information contained in the Bank’s annual report, its quarterly reports or in the lectures
presented by executive management shall also be made available through the investors’ relations position or on the Bank’s
website, posted in both Arabic and English.
5. The Bank’s annual and quarterly reports shall include a Management Discussion and Analysis (MD&A) disclosure from the
executive management. This disclosure allows investors to understand the results of current and future operations, as well
as the Bank’s financial position and the possible ramifications of common trends, events, and uncertain circumstances. The
Bank pledges that all explanatory notes contained in this disclosure shall be reliable, comprehensive, fair, balanced and clear,
and that they shall be based on the Bank’s published financial records.
152
6. As part of its commitment to transparency and absolute disclosure, the Bank’s annual report shall contain
the following:
The Bank’s “Corporate Governance Code”, as well as a report on the Bank’s commitment to each of the Code’s
clauses, including any reasons for non-compliance with a particular clause.
Information on each Board member: his/her qualifications and experience; his/her share of the Bank’s capital;
whether he/she is independent, executive or non-executive; his/her membership to any Board committees;
date of appointment to the Board; any membership to other Boards; remunerations/salaries received from
the Bank; loans granted by the Bank; any other operations between the Bank and the Board member, their
companies or any other related parties.
Disclosures of credit facilities obtained by Board members and their companies in accordance with approved
prevailing market rates and not at preferential terms. Members must not participate in any meetings in which
their personal transactions or contracts are discussed or come to vote.
A summary of the Bank’s organizational structure.
A summary of the Board committees’ duties and responsibilities, as well as any powers they have been granted
by the Board.
The number of meetings held by the Board and Board committees.
A summary of the Bank’s remuneration policies and the highest salary paid to the executive management.
The Board’s statement verifying the adequacy of its Inspection and Internal Control System.
A description of the structure and activities of the Risk Management Group.
The Bank’s principle shareholders (such as the shareholders or related parties who own or control more than
10% of the Bank’s capital), while identifying the ultimate beneficial owners, who are key shareholders in
companies considered as main shareholders of the Bank (where applicable).
Disclosure of any other matters that may strengthen the Bank’s commitment to disclosure and transparency.
These other matters must be proposed by the executive management and approved or requested by the Board.
153
The Executive Management’s Assessment of Internal Inspection and Control Systems:
The executive management is in charge of developing the Bank’s strategies and policies, as well as enforcing the said
policies after their adoption by the Board. It also prepares work procedures for all managerial levels of the Bank’s
various departments and activities, while specifying the means to identify and control potential risks that may be
faced by the Bank. Through supervision and regular ongoing reviews of internal inspection and control systems, the
executive management ensures the Board’s performance competency, while protecting the Bank and guaranteeing
sound banking practices and secure dealings at all times.
Internal inspection and control procedures are carried out according to the following
regulatory framework:
Human Resources Group:
Work organizing references include the organizational structure, job descriptions,
occupational development and career path systems, termination policies, Bank employees system, employees loaning
system, pension fund regulations, recruitment procedures, incentive regulations, training policies, performance
evaluation and promotion systems. Systems and instructions shall be reviewed and updated to be consistent with
legislative and regulatory changes, as well as best practices, in the field of human resource management.
Internal Audit Group:
Auditing organizing references include the Internal Audit Charter, audit procedure guide
and adopted plans. Audit reports are verified through follow-up procedures, which include providing corrective
measures to all branches and departments where required. The Audit Group is also currently developing risk
management-based work methods to increase effectiveness. Audit procedures are fully independent, with all reports
being submitted to the Audit Committee, an offshoot of the Board of Directors.
Strategy and Corporate Communications Group: The Strategy and Communications Group’s responsibilities
include following up on the execution of the annual action plans prepared by each of the Bank’s groups. The Group must
also verify that those different groups’ plans are complementary and do not conflict with each other. Adherence to action
plans is reviewed on a monthly basis, and any deviations found are noted before performance is assessed.
Risk Management Group:
Work procedure references include general risk management policies, which
consist of credit risk management policy, operational risk management policy and market risk management policy, in
addition to compliance inspection and anti-money laundering policy and procedures. The Risk Management Group
is represented by both the Products Committee and the Methods and Procedures Committee, so as to ensure that any
new product, procedure or system will be reviewed before its launch in order to check its compatibility with the Bank’s
regulatory policies and regulations, and that the level of risk associated with it has been identified and found to be
within the Bank’s acceptable risk level.
154
Financial Group:
The Bank’s financial and accounting systems are compatible with international standards
of financial reporting. The Bank’s financial status is accurately divulged, thereby providing customers with the
information necessary to the decision-making process. Quarterly, the performance of the Bank’s different groups is
evaluated objectively and impartially based on their identified goals and allocated estimated budgets.
Operations Group:
Through its various sub-departments, the Operations Group applies the many steps integrated
into the banking procedures, and aims at ensuring that each operation is carried out in accordance with banking
standards and within a tight regulatory framework. The Group also develops and documents banking procedures and
methods in manuals, which are prepared according to international quality standards and endorsed by a specialized,
neutral committee. The Inspections and Reporting Unit also operates within the Group, carrying out daily auditing
tasks and drafting regular reports on restrictions, reconciliations, bank accounts, external balances, investments, etc.
The Group makes sure that implementation is in line with adopted directives.
Credit Group: The Credit Group is fully independent from the business sector and from the Bank’s financing services.
It participates in the credit decision-making process after impartially and objectively reviewing facility applications. The
Group is represented by the Facilities Committee and possesses all necessary powers to carry out its tasks.
In addition, the Group continuously monitors facilities’ activities through reviews, focusing on credit portfolios. It also
studies the business sectors and assesses them from a risk-management perspective.
Procedurally, before any facilities are disbursed, the Group relies on a number of regulatory standards to ensure their
sufficient authority levels, their soundness and the completeness of securities offered to the Bank. The Group also
reviews existing security safeguards, which are subject to a change in value, as well as securities with specified end
dates. Thus, facilities are only activated following the verification of the soundness of all granting procedures and
relevant documentation.
In the case of accounts that show the beginning signs of collapse, early warning methods and diligent follow-
up procedures are designed to ensure that the appropriate corrective and preventative measures can be taken.
These actions are based upon extremely conservative standards, allowing for rapid response, tightly-run account
management and all things required, to maintain control of the situation.
Inspection and Internal Control:
The Inspection and Internal Control Group is responsible for the rigorous
application of measures to verify that banking operations and their accompanying records are carried out correctly, in
line with adopted directives and work procedure guides. These measures include prevention, warning, correction and
follow-up. All are carried out daily, monthly or annually–through reviews and audits of the branches’ daily accounting
portfolios, as well as extraordinary reports issued automatically at closures. These measures also include the
preparation of reconciliations for the branches’ checking accounts, along with management of procedures and foreign
bank accounts through field visits. Recently, a workshop for branch employees was held under the title “Employee
Oversight Awareness” as a preventative step among the department’s other standard controls.
Information Technology:
The Information Technology Group works according to a comprehensive and coherent
plan laid out by the creators of the Bank’s systems. The Group ensures the safe use of the automated system according
to the tight controls built into it, allowing performance monitoring and exclusivity of responsibilities.
Security and Safety Requirements:
The Bank is committed to applying strict security and safety standards
that meet regulatory requirements. The effectiveness and preparedness of the Bank, in addition to the efficacy of its
protective measures, are under ongoing review to ensure the safety of the Bank’s employees and assets.
Through this evaluation, the executive management can determine that departments concerned with internal
inspection and control have carried out their specific plans and that their work has adhered to the Bank’s high
standards of discipline and professionalism.
155
Acknowledgments of the Board of Directors
The Jordan Ahli Bank’s Board of Directors acknowledges, to the best of its knowledge and belief, that there are no substantial
issues that may affect the continuity of the Bank’s work during the financial year 2015, as well as its responsibility for the
preparation of financial statements and availability of an effective internal control and monitoring system.
1- H.E. Dr. Omar Razzaz Chairman
2- H.E. Mr. Saad Muasher Deputy Chairman
3- H.E. Mr. Nadim Muasher Member
4- H.E. Dr. François Basil Member
Representative, Byblos Bank (Lebanon)
5- H.E. Mr. Imad Yousef Muasher Member
Representative, Muasher Investment and Trading Co.
6- H.E. Mr. Wasef Azar Member
Representative, Jordan Investor Center Co.
7- H.E. Mr. Mohammed Abdallat Member
Representative, Social Security Corporation
8- H.E. Mr. Rafiq Saleh Muasher Member
Representative, Rajai Muasher & Brothers Co.
9- H.E. Mr. Hani Atallah Fraij Member
Representative, Arabia S.A.L. Holding Company (Lebanon)
10- H.E. Mr. Mahmoud Malhas Member
11- H.E. Mr. Ala’adin Sami Member
Representative, ZI & IME Co. (Saudi Arabia)
12- H.E. Mr. Kareem Kawar Member
156
Jordan Ahli Bank
15 7
Ahli Microfinance Company
Overview:
The Ahli Microfinance Co., wholly-owned by Jordan Ahli Bank, was established as a limited liability company on July
20, 1999. Its capital currently stands at JD 3.5 million/share. The Company aims at investing its funds and funding
sources in financing small enterprises in financial, industrial, commercial, tourism and services sectors. The Company
was exempted from all duties, taxes and licenses, and all other financial burdens such as income and sales tax. The Ahli
Microfinance Co. is considered as the first company engaged in financing small enterprises in the private sector.
Achievements:
By the end of 2014, the portfolio growth rate reached (17.6), amounting to JD 11.7 million. The percentage of growth
in operating revenues stood at 10% during the same period of the year, compared to that of 2013, recording JD 2.8
million. Whereas, the percentage of growth in profits reached 9% compared to the profits made during 2013. In
application of the expansion plans, the Company moved the Marka and Hashmi branches to new locations and opened
new branches in Madaba and Hay Nazzal.
The ISO 9001:2008 Quality Management System Certification was updated by continuing to build and follow
administrative and marketing operations and customers relations methodologies, as well as manage human resources,
infrastructure and information systems. It was during the last period that the Company has made significant
achievements, translated by granting two of its customers the 2014 Citigroup Global Award for the handicraft and
commercial business sector. For the third consecutive year, the Company was honored by Her Royal Highness Princess
Basma for its participation in sponsoring the Queen Alia Competition for Social Responsibility, organized by the
Jordanian Hashemite Fund for Human Development. In this regard, the Company supported the principle of social
responsibility so as to fulfill its responsibilities towards the society in which it operates.
*Available when needed
158
Ahli Brokerage Company Co.
Overview:
The Ahli Brokerage Co., wholly-owned by Jordan Ahli Bank, was established as a private joint stock company according
to the Jordanian Companies Law with a capital of JD 10 million. The Company started operating on the first of September
2006, and its capital currently stands at JD 15 million. It is engaged in providing brokerage services and trading in securities
listed in the Amman Stock Exchange. The Company also holds licenses to carry out brokerage operations and provide
financing services on the sidelines.
Achievements:
During 2014 and within the framework of its strategic plan, the Company succeeded in strengthening its financial
position by reducing total expenses, increasing its competitiveness and market share in spite of the economic and political
circumstances in the region. This was reflected positively on the Company’s operations’ results during 2014, which resulted
in achieving a quantum leap in the net profits after calculating the taxes and allowances to reach around JD 344 thousand,
compared to losses that were estimated at JD 1.2 million by the end of 2013. The Company continued exercising hedge
procedures, strengthening the role of the Risk Management Department, and developing internal control systems so as to
enhance its financial position and maintain its assets and shareholders’ equity. In this regard, net shareholders’ equity rose
by 10.8% to reach around 15.992 million and represent 94.4% of total assets. This has increased the Company’s solvency
rate, amounting to 106%.
Accordingly, the Company will proceed through firm steps towards marketing its services by attracting new customers with
a view to increasing revenues, and completing the development of security operations with respect to the brokerage system
and technical operational system of customers’ data and information. In addition, the Company seeks to improve security
and electronic protection procedures according to the Jordan Securities Commission’s approved criteria, as well as to focus
on developing the existing functional cadre so as to provide its customers in an efficient and professional manner.
Nominations and
Remunerations Committee
Audit Committee
Legal Advisor
Chairman’s Advisor
Accredited Financial
Broker
Accredited Financial
Broker
Accredited Financial
Broker
Senior Administrative
Accountant
Marketing & Customer
Service Employee
Internal Audit
Compliance Officer
Board of Directors
Director General
Marketing &
Customer Service
Assistant Director
General of
Brokerage Operations
Assistant Accountant
Administration
& Financial Affairs
159
Ahli Financial Leasing Co.
Overview:
The Ahli Financial Leasing Co., wholly-owned by Jordan Ahli Bank, was established in 2010 as a private joint stock
company with a capital of JD 10 million. The Company is engaged in providing financial leasing services to all the
production sectors according to a modern financing method and through financing capital assets, such as real estate,
industrial equipment and machinery, medical apparatus devices and transportation means, while relying on assets as a
primary source of repayment and guarantee. This is carried out through conducting financial and technical studies on
the funded assets.
Achievements:
During 2014 the Company achieved a growth in total assets by 14.2%. The balance of net investment in financial
leasing also increased by 14.6% during the same period, as a result of concluding 121 contracts, amounting to JD
18.128 million. Consequently, rental income rose by 22.5% during 2014 and the Company achieved a net profit before
calculating the taxes, and a return on equities at a rate of 20.7% and 11.7% of total equities amounting to JD 16.629
million, respectively.
It is expected that the Company achieves a growth in net profits after calculating the taxes by 28% in 2015, as well as a
growth in total assets by more than 10%, resulting in an increase of equities by no less than 59% in the coming year.
External Auditor
Financial Leasing
Officer
Secretariat
Board of Directors
Director General
Legal Affairs &
Documentation
Leasing Officer
Leasing Officer
Leasing OfficerOffice Boy
Financial Leasing
Affairs
Chief Financial
Officer
Senior Accountant
Administrative
Employee
Administrative &
Financial Affairs
160
Jordan Ahli Bank Branches and Offices inside the Hashemite
Kingdom of Jordan
The Administration
Amman – Shmeisani – Queen Noor St.
P.O. Box 3103 Amman 11181 Jordan
Telephone: 5638800, Fax: 5622281
Swift Code: JONB JOAX
Website: http://www.ahli .com
E-mail: [email protected]
Sweifieh Branch
Amman – Sweifieh – Haddad Commercial Complex
P.O. Box 850663 Sweifieh 11185 Jordan
Telephone: 5865401, Manager: 5825651, Fax: 5865402
Operations Department
Jabal Amman – Third Circle
P.O. Box 1578 Amman 11118 Jordan
Telephone: 4657601, 5002130
Fax: 4628801, Telex: 21820
Wakalat St. Branch/Sweifieh
Amman – Sweifieh – Wakalat St.
P.O. Box 852126 Sweifieh 11185 Amman
Telephone: 5852486, Manager: 5821509, Fax: 5854283
Credit Department
Amman – Shmeisani – Yacoub Sarrouf St.
P.O. Box 925993 Amman 11118 Jordan
Telephone: 5609800, Fax: 5663145
Culture St. Branch/Shmeisani
Amman – Shmeisani – Culture St.
P.O. Box 940017 Shmeisani 11194 Jordan
Telephone: 5681382, Manager: 5673578, Fax: 5681326
Main Branch
Amman – Shmeisani – Queen Noor St.
P.O. Box 941273 Shmeisani 11194 Jordan
Telephone: 5638800, Manager: 5685901, Fax: 5699867
Queen Rania Al-Abdullah St. Branch
Amman – Sports City Circle – Arab Printers Building
P.O. Box19285 Amman 11196 Jordan
Telephone: 5698883, 5698619,
Manager: 5699042, Fax: 5699742
Corporate Branch
Amman – Shmeisani – Yacoub Sarrouf St.
P.O. Box 925993 Amman 11118 Jordan
Telephone: 5608730, Manager: 5696761, Fax: 5699867
Jabal Al-Hussein Branch
Amman – Jabal Al-Hussein – Beer Al-Sabe’
P.O. Box 921085 Jabal Al-Hussein 11192 Jordan
Telephone: 5667216, Manager: 5673984, Fax: 5698069
Abdoun Branch
Amman – Abdoun – Cairo St.
P.O. Box 851216 Sweifieh 11185 Jordan
Telephone: 5929397, 5929431, Manager: 5923024, Fax:
5929652
Wasfi Al-Tal St. Branch
Amman – Wasfi Al-Tal St. – Muhtaseb Building
P.O. Box 1114 Tlaa Al Ali 11953 Jordan
Telephone: 5682124, Manager: 5682177, Fax: 5682188
Taj Mall Branch
Taj Mall – Abdoun – Saad Abdo Shamout St.
P.O. Box 850663 Sweifieh 11185 Jordan
Telephone: 5930961/75/76/86, Manager: 5930895, Fax:
5931024
Wadi Saqra Branch
Wadi Saqra Branch – Saqra Mall – Arar St. – Building No.238B
P.O. Box 182352 Amman 11118 Jordan
Telephone: 5679138, Manager: 5679317, Fax: 5678612
Jabal Amman Branch
Jabal Amman – Third Circle
P.O. Box 35011 InterContinental Jordan 11180 Jordan
Telephone: 5002130,4653645, Manager: 4628819, Fax:
4611541
City Center Branch
Amman – Reda St.
P.O. Box 791 Amman 11118 Jordan
Telephone: 4625126/7, Manager: 4624218, Fax: 4625120
Mecca St. Branch
Amman – Mecca St.
P.O. Box 973 Tlaa Al Ali 11821 Jordan
Telephone: 5856017, 5866197, Manager: 5852511, Fax:
5866097
Middle East Circle Branch
Amman – Middle East Circle
P.O. Box 620190 Al Sha’ailiyah Neighborhood 11162 Jordan
Telephone: 4777279, Manager: 4777288, Fax: 4777289
Bayader Branch
Amman – Bayader – Main St.
P.O. Box 140278 Bayader 11814 Jordan
Telephone: 5857791, Manager: 5859934,
Fax: 5819834
161
Chamber of Industry Building Branch
Jabal Amman – Second Circle – The Islamic Scientific College St.
P.O. Box 2958 First Circle 11181 Jordan
Telephone: 4644896, 4644391, Manager: 4641142,
Fax: 4649564
Sahab Branch
Prince Hassan St.
P.O. Box 2 Sahab 11511 Jordan
Telephone: 4021092, Manager: 4025673, Fax: 4021609
Abdullah Ghosheh St. Branch
Amman – Seventh Circle – Abdullah Ghosheh St.
P.O. Box 850664 Sweifieh 11185 Jordan
Telephone: 5817920, 5828717, Manager 5857782,
Fax: 5817921
Marka Al-Shmaliyeh Branch
Amman – Marka Al-Shmaliyeh – Opposite to Military Hospital
P.O. Box 15397 Marka 11134 Jordan
Telephone: 4894825/7, Manager: 4890970, Fax: 4890360
Um Uthaina Market Branch
Amman – Shat Al-Arab St.
P.O. Box 851676 Amman 11185 Jordan
Telephone: 5523181, 5523469, Manager: 5522907,
Fax: 5523028
Dahiyat Al-Yasmeen Branch
Amman – Al-Yasmeen Neighborhood
P.O. Box 630688 Amman 11163 Jordan
Telephone: 4206842, Manager: 4206841, Fax: 4206759
Al Rabieh Branch
Amman – Al Rabieh – Kabul St. – Al Yarmouk Plaza Complex
P.O. Box 17411 Al Rabieh 11195 – Jordan
Telephone: 4603126, 4603125, Manager: 4603124,
Fax: 5516594
Ibn Khaldoun St. Branch
Jabal Amman – Third Circle – Ibn Khaldoun St. – Building No. 67
P.O. Box 3103 Amman 11181 Jordan
Telephone: 4641320, 4641310, Manager: 4641377,
Fax: 4641399
City Mall Branch
Medical City St. – City Mall
P.O. Box 4822 Amman 11953 Jordan
Telephone: 5823156, Manager: 5823154, Fax: 5825174
Jubayhah Branch
Amman – Yajouz St. – Municipality Neighborhood
P.O. Box 2666 Amman 11941 Jordan
Telephone: 5354843, Manager: 5349836, Fax: 535482
Khalda Branch
Amer Bin Malek St. – Khalda Center Complex No. 9
P.O. Box 2867 Amman 11821 Jordan
Telephone: 534098, 5340698, 5341653, Manager: 5341409,
Fax: 5341263
Khreibet El-Souq Branch
Amman – Khreibet El-Souq – Madaba St.
P.O. Box 665 Khreibet El-Souq 11621 Jordan
Telephone: 4126522, Manager: 4125088, Fax: 4127610
Sweileh Branch
Amman – Sweileh – Main St.
P.O. Box 15 Sweileh 11910 Jordan
Telephone: 5343143/4, Manager: 5343357, Fax: 5333632
Marj Al-Hamam Branch
Marj Al-Hamam – Princess Taghreed St.
P.O. Box 776 Amman 11732 Jordan
Telephone: 5716133/4, Manager: 5716906, Fax: 5716915
Abu Nseir Branch
Amman – Abu Nseir – Karameh St.
P.O. Box 542113 Abu Nseir 11937 Amman
Telephone: 5105137, Manager: 5105146, Fax: 5105142
Ruseifah Branch
King Hussein St.
P.O. Box 2000 Ruseifah 13710 Jordan
Telephone: 05-3746190, 05-3746191, Manager: 05-374619,
Fax: 05-3746192
Al-Hashmi Al-Shamali Branch
Amman – Al-Hashmi Al-Shamali – Prince Rashid St.
P.O. Box 230120 Al-Hashmi Al-Shamali 11123 Jordan
Telephone: 4901363, 4901343, Manager: 4901334,
Fax: 4901302
Madaba Branch
King Hussein St. – Near the Municipal Circle
P.O. Box 295 Madaba 17110 Jordan
Telephone: 05-3244254, Manager: 05-3245181,
Fax: 05-3240260
Al-Horrieh St. Branch
Amman – Al-Horrieh St. – Um Al-Qsir Neighborhood
P.O. Box 110171 Amman 11110 Jordan
Telephone: 4206174, 4206108, Manager: 4206194,
Fax: 4206214
Salt Branch
Municipality St.
P.O. Box 50 Salt 19110 Jordan
Telephone: 05-3555771/2/3, Manager: 05-3558014,
Fax: 05-3555774
162
Al Balqa University Branch
Salt – Al Balqa University
P.O. Box 929 Salt 19117 Jordan
Telephone: 05-3532691/2, Ext.: 3610, Fax: 05-3532690
Irbid Branch
Army St.
P.O. Box 61 Irbid 21110 Jordan
Telephone: 02-7242201/2, Manager: 02-7242686,
Fax: 02-7276146
Bawabat Al Salt Branch
Al Salt Entrance – Next to the Palace of Justice
P.O. Box 106 Salt 19110 Jordan
Telephone: 05-3553358, Manager: 05-3533144,
Fax: 05-3551440
Arabella Mall Branch
Irbid – King Abdullah II St.
P.O. Box 3205 Irbid 21110 Jordan
Telephone: 02-7249324, 02-7249252, Manager: 02-7249154,
Fax: 02-7249236
Al Fuhais Branch
Al Hejaz St. – After the Amman Baccalaureate School – Ala’a &
Ali Akroush Complex
P.O. Box 3328 Al Fuhais 19153 Jordan
Telephone: 06-4603128, 06-4603129, Fax: 06-4621702,
Ext. 06-47221703, 06-4721702
Hashmi St. Branch/ Irbid
Irbid – Hashmi St.
P.O. Box 368 Irbid 22110 Jordan
Telephone: 02-7278613, 02-7250374, Manager: 02-7250371,
Fax: 02-7278614, 02-7250364
Deir Alla Branch
Main St.
P.O. Box 99 Deir Alla 18210 Jordan
Telephone: 05-3573057, Manager: 05-3573161,
Fax: 05-3573186
Hakama St. Office
Irbid – Hakama St.
P.O. Box 368 Irbid 22110 Jordan
Telephone: 02-7278613, 02-7254377, Manager: 02-7254348,
Fax: 02-7278614
Zarqa Branch
King Hussein St.
P.O. Box 111 Zarqa 13110 Jordan
Telephone: 05-3983363, Manager 05-3983150,
Fax: 05-3996555
Industrial Zone Office
Irbid – Industrial Zone
P.O. Box 61 Irbid 21110 Jordan
Telephone/Fax: 02-7400055, Manager: 02-7404143
New Zarqa Branch
Al-Kurdi Plaza – St.36 – Facing Al-Hirafiyah Al-Shamaliyah Area
P.O. Box 12499 Zarqa 13112 Jordan
Telephone: 05-3858951, Manager: 05-3859697,
Fax: 05-3859110
Karak Branch
Karak – Italian Hospital St.
P.O. Box 177 Karak 61110 Jordan
Telephone: 03-2351248/9, Manager: 03-2243945,
Fax: 03-2351676
Free Zone Branch
Zarqa – Free Zone
P.O. Box 60 Free Zone 13134 Jordan
Telephone: 05-3826214, 05-3826626, Manager: 05-3826171,
Fax: 05-3826200
Tafila Branch
Tafila – Main St.
P.O. Box 13 Tafila 66110 Jordan
Telephone: 03-2241120, Manager: 03-2243945,
Fax: 03-2241710
Jerash Branch
King Abdullah St.
P.O. Box 125 Jerash 26110 Jordan
Telephone: 02-6351891/2, Manager: 02-6351890,
Fax: 02-6351893
Maan Branch
Maan – King Hussein St.
P.O. Box 114 Maan 71111 Jordan
Telephone: 03-2132347/8, Manager: 03-2133749,
Fax: 03-2132799
Mafraq Branch
Municipal St. – Facing Electronic Store
P.O. Box 510 Mafraq 25110 Jordan
Telephone: 02-6232501, Manager: 02-6232535,
Fax: 02-6230303
Aqaba Branch
Aqaba – Hamamat Al Tunisiyah St.
P.O. Box: 49 Aqaba 77110 Jordan
Telephone: 03-2022350/1/2, Manager: 03-2013535,
Fax: 03-2022353
Ramtha Branch
Banks’ St.
P.O. Box 198 Ramtha 21410 Jordan
Telephone: 02-7383817, Manager: 02-7381670,
Fax: 02-7382610
163
Jordan Ahli Bank’s Branches and Offices Abroad
Palestine Branches
Regional Management – Palestine Branches
Al Zahra’ St. – Ramallah
Manager: 00972/2/2959340
Assistant Manager: 00972/2/2959347
Ext.: 00972/2/2959343/4
Fax: 00972/2/2959341
P.O. Box 550 Ramallah – Palestine
E-mail: [email protected], [email protected]
Business Center –Ramallah
Ramallah – Rukab St. – Dunia Commercial Center – Second Floor
Manager: 00972/2/2989008
Telephone/Fax: 00972/2/2989006/7
00972/2/2977805/7
Nablus Branch
Commercial Center (A) – Building No. 8
Manager: 00972/9/2374501
Telephone: 00972/9/2382280/1/2
Fax: 00972/9/2382283
P.O. Box 40
E-mail: [email protected]
Bethlehem Branch
Al-Mahd St.
Manager: 00972/2/2770353
Telephone: 00972/2/2770351/2
Fax: 00972/2/2770354
P.O. Box 807
E-mail: [email protected]
Shallaleh St. Branch
Hebron No. 26 – Shallaleh St.
Manager: 00972/2/2224804
Telephone: 00972/2/2224801/2/3
Fax: 00972/2/2224805
P.O. Box 623
E-mail: [email protected]
Al-Salam St. Branch
Hebron – Al-Salam St.
Manager: 00972/2/2212770
Telephone: 00972/2/2226713/4
Fax: 00972/2/2226712
P.O. Box 718
E-mail: [email protected]
Ramallah Branch
Al Zahra’ St
Manager: 00972/2/2986310
Telephone: 00972/2/2986313/4
Fax: 00972/2/2986311
P.O. Box 550
E-mail: [email protected]
Cyprus Branches:
Jordan Ahli Bank – Cyprus
Pecora Tower, 2nd Floor, Anexartisias St. 1
P.O. Box 53587 3303 Lemesos – Cyprus
Telephone: 00357/25/356669
Fax: 00357/25/356673
E-mail: [email protected]
treasur[email protected]
Dealing Room
Telephone: 00357/25/871123
Reuters Code: JNBC
Swift Code: JONB CY 21
164
ATMs Inside Jordan Ahli Bank’s Branches
1 Main Branch Shmeisani/Queen Noor St./Administration Building
2 Jabal Amman Branch Jabal Amman/Third Circle/Next to InterContinental Hotel
3 Chamber of Industry Building Branch Jabal Amman/Second Circle/Chamber of Industry Building
4 Sweifieh Branch Sweifieh/Haddad Commercial Complex
5 Mecca St. Branch Amman/Mecca St.
6 Abdullah Ghosheh St. Branch Seventh Circle/Abdullah Ghosheh St.
7 Queen Rania St. Branch Amman/Sports City Circle/Arab Printers Building
8 City Center Branch Amman/Reda St.
9 Culture St. Branch Shmeisani/Culture St.
10 Al-Horrieh St. Branch Al-Horrieh St.
11 Abdoun Branch Abdoun/Cairo St.
12 Marj Al-Hamam Branch Marj Al-Hamam/Princess Taghreed St.
13 Jabal Al-Hussein Branch Jabal Al-Hussein/Beer Al Sabe’ St.
14 Wasfi Al-Tal Branch (1) Wasfi Al-Tal St./Muhtaseb Building
15 Wasfi Al-Tal Branch (2) Wasfi Al-Tal St./Muhtaseb Building
16 Ahli Brokerage Co. Building Shmeisani/Opposite to Wahbi Tamari Kindergarten
17 Al-Bayader Branch Al-Bayader/Main St.
18 Wakalat Branch Sweifieh/Wakalat St.
19 City Mall Branch Khalda/Medical City St.
20 Credit Building/Philadelphia Branch Shmeisani/Yacoub Sarrouf St.
21 Wadi Saqra Branch Saqr Commercial Complex/Arar St.
22 Dahiyat Al-Yasmeen Branch Bader Area/Al-Yasmeen Neighborhood/Jabal Arafat St./Building No. 9
23 Um Uthaina Market Branch Um Uthaina Market/Shat Al-Arab St./Building No. 14
24 Taj Mall Branch Abdoun/Saad Abdo Shamout St./Inside the Commercial Market
25 Data Cleansing Department Building Seventh Circle/Next to DHL
26 King Hussein Business Park Amman/Al-Jandaweel/Al Shaeb St.
27 Al-Rabieh Branch (1) Amman/Al-Hay Al-Tijari St./Al-Yarmouk Plaza Complex
28 Al-Rabieh Branch (2) Amman/Al-Hay Al-Tijari St./Al-Yarmouk Plaza Complex
29 Tlaa Al Ali Branch Amman/Tlaa Al Ali/Khalil Al Salim St.
30 Abu Nseir Branch Abu Nseir/Al-Karama St.
31 Middle East Circle Branch Al Wehdat/Middle East Circle Branch
32 Sweileh Branch Sweileh/Main St./Building No. 6B
33 Sahab Branch Sahab/Prince Hassan St.
34 Khreibet Al-Souq Branch Khreibet Al-Souq/Madaba St.
35 Marka Branch Marka/Opposite to the Military Hospital
165
36 Khalda Branch (1)
Khalda Center/Opposite to the Modern American School
37 Khalda Branch (2)
38 Al-Hashmi Al-Shamali Branch Al-Hashmi/Prince Rashid St.
39 Jubayhah Branch Yajouz St.
Balqa Governorate
40 Al-Salt Branch Al-Salt/Municipality St.
41 Al-Salt Gate Branch Al-Salt Town Entrance/Next to the Palace of Justice
42 Deir Alla Branch Deir Alla/Main St.
43 Al-Balqa University Branch Al-Salt/Inside Al-Balqa University
44 Al-Fuhais Branch Al-Fuhais/Al-Hijazi St./Next to Amman Baccalaureate School
Zarqa Governorate
45 Zarqa Branch Zarqa/King Hussein St. (Al-Sa’adeh St.)
46 New Zarqa Branch New Zarqa/Al-Kurdi Plaza
47 Al-Ruseifah Branch Al-Ruseifah/King Hussein St.
North Region
48 Irbid Branch (1)
Army St./Jordan Ahli Bank Building
49 Irbid Branch (2)
50 Industrial Zone Branch – Irbid Al-Yaziji St./Next to Mitsubishi
51 Ramtha Branch Ramtha/Banks’ St.
52 Hashmi St. Branch/Irbid Irbid/Hashmi St.
53 Arabella Mall Branch Irbid/King Abdullah II St./Inside the Commercial Market
Tafila Governorate
54 Tafila Branch Tafila/Main St.
Karak Governorate
55 Karak Branch Karak/Italian Hospital St.
Aqaba
56 Aqaba Branch Aqaba/Hamamat Al-Tunisiyah St.
Madaba Governorate
57 Madaba Branch Madaba/Next to the Municipality Building
Mafraq Governorate
58 Mafraq Branch Mafraq/Municipality St./Facing the Electronic Store
Jerash Governorate
59 Jerash Branch Jerash/King Abdullah St.
Maan Governorate
60 Maan Branch Maan/King Hussein St.
166
ATMs Outside Jordan Ahli Bank’s Branches:
1 Plaza Super Stores Shmeisani/Queen Noor St./Inside the Commercial Market
2 Safeway (Seventh Circle) Seventh Circle/Inside the Commercial Market
3 Amman Mall Tlaa Al Ali/Inside the Commercial Market
4 Keserwani Station Al Madina Al Munawara St./Keserwani Station
5 Al Salam Market Al Jandaweel/Inside the Commercial Market
6 Safeway Shmeisani Shmeisani/Inside the Commercial Market
7 Mecca Mall Khalda/Inside Mecca Mall
8 Sheraton Hotel Fifth Circle/Inside Sheraton Hotel
9 Cozmo (Seventh Circle) Seventh Circle/Inside the Commercial Market
10 University of Jordan Inside the University of Jordan
11 Marriott Hotel Amman Shmeisani/Inside Marriott Hotel
12 Corner Supermarket Fourth Circle/Behind the Belgium Embassy
13 Maxim Mall Jabal Al-Hussein/Firas Circle
14 Safeway Wholesale Center Muqabalein/Inside the Commercial Market
15 Israa University Airport Road/Inside Israa University
16 Al-Hussein Cancer Center University of Jordan St./Inside the Center
17 Al-Baraka Mall Sweifieh/Inside Al-Baraka Mall
18 Mukhtar Mall Queen Rania Abdullah St./Next to the Sports City Circle
19 ATM Shop Jabal Amman/First Circle/Rainbow St.
20 Landmark Hotel Amman Amman/Jabal Amman
21
Ministry of Industry and Trade/
Corporate Control
Amman/Jabal Al-Hussein
22 Shafa Badran Licensing North Amman/Drivers and Vehicles Licensing Department
23 Children’s Museum Amman/Al-Hussein Public Parks/King Abdullah St.
24 Plaza Mall Al-Hashmi Al-Shamali/Inside Plaza Mall
25 Marka Licensing Center Marka/Inside the Licensing Center
26 Safeway Marj Al-Hamam Marj Al-Hamam/Princess Taghreed St./Al-Jundi Circle
27 University of Jordan St. University of Jordan St./Opposite to the University’s Mosque
28 Civil Status and Passports Department Tabarbur/Next to the Arab Open University
29 Traffic Tech – Station Station/Army St.
Balqa
30 Marriott Hotel Dead Sea Inside Marriott Hotel Dead Sea
31 Al-Salt Licensing Center Balqa/Al-Saru St./Opposite to Al-Ahliyya Amman University
Zarqa
32 Safeway Zarqa New Zarqa/Inside the Commercial Market
167
Aqaba
33 InterContinental Hotel Aqaba Aqaba/Inside the Hotel
34 Safeway Aqaba Aqaba/Inside the Commercial Market
35 Aqaba Market Aqaba/Previous Jordan Ahli Bank Building
North Region
36 Safeway Irbid Irbid/Inside the Commercial Market
Madaba Governorate
37
Madaba Carrefour Market – Farah
Complex
Al-Yarmouk St./Opposite to Al-Shakhatira Station
