Jordan’s banking sector continued to display sound financial indictors including growth in profitability, lower non-performing loans, high liquidity during the first half of this year, a report said.

The banking sector’s total assets increased by JD2.76 billion ($3.89 billion), representing an 8.44 per cent growth from 2006 year-end to reach JD35.40 billion, said the Jordinvest report.

The Arab Bank (ARBK) was the largest contributor to this increase, whereby its total assets rose by JD1.67 billion, equivalent to 60.56 per cent of the total increase in the banking sector. The growth was boosted by the
JD848.63 million surge in net credit facilities, representing a 10.73 per cent rise in the first six months of the year.

The Housing Bank for Trade and Finance (THBK) came in second place contributing JD425.98 million to the
increase in total assets, mainly driven by the JD189.17 million growth in cash balances at banks and financial
institutions.

Only one bank experienced a marginal decline in its total assets, Union Bank (UBSI), which saw its assets
drop by less than 1 per cent to JD884.91 million.

Total net credit facilities jumped by JD1.53 billion, up 10.77 per cent.

In terms of the allocation of credit facilities by economic activity, the Central Bank of Jordan (CBJ) statistical
bulletin revealed that the general trade sector’s share stood at 21.41 per cent of total facilities as of June 2007. This
was followed by 17.41 per cent granted for construction purposes and 11.89 per cent to the industrial sector.

Facilities granted for general trade and construction purposes were the largest contributors to the growth seeing an
increase of JD387.30 million and JD312.40 million respectively. The mining sector registered the largest percentage growth at 89.48 per cent.

Total liabilities increased by JD2.52 billion hitting JD29.98 billion, mainly fuelled by a JD1.88 billion increase
in customer deposits in tandem with a JD0.59 billion increase in banks and financial institutions' deposits.

Examining the sector’s profitability reveals an increase of JD16.04 million in the bottom line year on year. This
represents a 5.69 per cent rise to JD297.87 million, as compared to JD281.83 million in the first half of 2006.

Jordan Commercial Bank (JOGB) recorded the highest percentage growth, whereby its net income rose by 22.68 per cent, up JD1.37 million.  -TradeArabia News Service