Dear Shareholders,
With great sorrow the Board and staff of Investbank mourn the passing of the founder and first chairman of our bank, Pharmacist Nizar Abdul Rahim Jardaneh. He, along with the founding partners established the solid foundations that allowed Investbank to carve out our distinctive position within the Jordanian Banking Sector. We will always celebrate and cherish the vision and guidance that Mr. Jardaneh instilled.
It is with pleasure that the Board of Investbank presents the twenty sixth, Annual Report of 2008. Due to the extraordinary and unprecedented global financial crisis (since the great depression) that caused a slowdown to the world economy, the year 2008 has been an exceptional and challenging one.
The Jordanian Economy…
Being an integral part of the global economy, the Jordanian economy was not immune to the repercussions of the crisis; yet one positive element that emerged and had a calming effect was the drop in oil prices and other commodities that have helped the economy to catch its breath and consequently led to lower inflation. Notwithstanding the anxiety over the exacerbation of negative indicators that persists.
Government Commitment…
The Government has continued its commitment towards the spirit of an open economy, the modernization of the economic legislations and attracting investments. This coincided with the Government’s announcement to guarantee all deposits in Jordanian banks until the end of 2009; bolstering trust and confidence into the Jordanian economy.
Controlling the Money Supply…
The Central Bank of Jordan exercised its role in steering the monetary policy by being vigilant and cautious. This has mitigated the severity of the global crisis on the financial system and contributed towards containing the consequent adverse ramifications.
Performing Under Pressure…
In this context, the growth achieved by the bank during 2008 is a testament to the healthy performance delivered under pressure and our ability to continue the journey on the same positive path. The bank is no stranger to this. Since its inception in 1982, our bank was able to overcome all challenges and reinforce its position – what position is it reinforcing?! - in the marketplace.
Sustainable Banking Relationships…
Our bank maintained its prudence in the provision of its banking services to its customers; be those corporations, SME, or retail. Our aim is to cultivate sustainable banking relationships with our customers, by focusing on a client base that is characterized by being loyal to the bank, coupled with qualified and proactive human capital who are the providers of our banking service which subscribes to the mission, vision and objectives of the bank. Moreover, upgrading the capabilities of our human asset through good recruitment, continuous trainings, better work environment, and encouragement of new initiatives will collectively result in higher productivity culminating in a better performance.
Financial Performance…
The results achieved underscores a new, which the bank took, was the correct one and we are heading in the right direction. This has manifested itself in the shareholders equity which reached JD 86 million versus JD 79 million in the year before, translating into a growth of 9%. The gross income was at JD 22 million and after tax reduction, the profits in 2008 reached a total of JD 8.8 million. Moreover, our portfolio of facilities has totaled JD 324 million against JD 313 million in the year before with a growth of 3.6%, while our portfolio of deposits has reached JD 448 million versus JD 412 million the year before with a growth of 9%. The foregoing improvements have led to a capital adequacy of 17% which is considered a healthy rate.
Reinforcing our Position and a new Strategy…
In the meantime, the bank has embarked on a new ambitious strategy for the years 2009 to 2011 by enacting the action plans and the corresponding initiatives to cement and enhance our competitive position in the local market place. This will come about by providing distinct and diversified services while simultaneously deep rooting the management process; through complementing the principle of good governance with modernizing and upgrading in all the IT and operational systems that underlies the bank. We will also further anchor the bank’s corporate identity.
The Eye of the Storm…
In regards to the economic conditions, all current indicators point to a challenging period ahead that might take a turn to the worse during 2009 due to the portents of a recession starting to emerge. This means that the banking sector will be in the eye of the storm.
Responsibilities…
We all shoulder the responsibilities individually or collectively as a team to handle the repercussions of the financial crisis. This can be in the form of fortifying our decisions and taking precautionary coordinated measures to confront any emergency on the one hand or to preserve the economic activity and the needs of our clients on the other hand. In doing so, our bank will be able to achieve our common interests and to create the conducive conditions to overcome the crisis and its associated challenges with little damage. Our bank will be proactive in taking measures that will be necessary to seize the opportunities inherent in these challenges through well studied plans that will measure up to the highest standards of financial compliance
We Change with the Seasons but the Seasons will not Change us…
The bank has proved numerously and on several occasions its ability to steadfast in the face of change predicated on the will to continue that has governed its journey. In vein and tapping into this will, the bank was able over the years to adapt to market developments despite the changing seasons.
We Remain True to Our Commitments…
Finally, on behalf of our Board of Directors, I am honored to pay tribute to the outstanding efforts of our former chairman, His Excellency Mr. Basil Jardaneh, in building our great institution. We promise to honor both his and our pledges to our customers and the broader community whilst adhering to the principles of integrity, responsible work ethic and loyalty which were weaved into the bank’s culture since 1982.
I would like also to express my gratitude to the Bank’s family of shareholders, clients and employees for their continuous support and trust so that the bank continues to prosper on solid foundation.
God bless,
Bisher Mohamed Jardaneh
Chairman of the Board
