Khaberni - The report issued by the Banking Association presents a positive picture of the performance of the Jordanian banking sector during the last year, as it was able to achieve stable growth in the most prominent financial indicators, indicating the sector's continued strength and its ability to support the national economy despite regional and international challenges.
The assets of banks operating in Jordan increased by 5.6% to reach 69.85 billion dinars. This growth was driven by an increase in domestic assets by 5.2%, reaching 63.05 billion dinars, alongside the growth in foreign assets by 9.3% to 6.8 billion dinars. The banks' assets represented 184.4% of the GDP at current prices, reflecting the pivotal role of banks in financing economic activity and providing the liquidity necessary for growth.
The Banking Association in Jordan issued the "Major Banking Developments of the Year 2024" report, which contains a wide range of data, information, and banking indicators concerning the banks operating in Jordan at the aggregate and individual levels, reflecting the strength and continued growth and stability of the banking sector. The report provides these data and indicators accurately, relying on data issued from the Central Bank of Jordan and the banks operating in Jordan.
In a parallel context, the report showed that the total deposits at banks in Jordan saw a notable growth last year, as total deposits increased by 6.8% to about 46.7 billion dinars. This increase was a reflection of the growth in deposits from both the private and public sectors. Deposits of various types (demand, saving, and time deposits) also rose during the last year. These figures are evidence of the ongoing confidence in Jordanian banking institutions and their stability, as well as the robust relationship between banks and their clients from individuals and companies.
According to the report, credit facilities granted by licensed banks rose by 4.2%, reaching 34.78 billion dinars at the end of last year, confirming the banks' continued effective role in stimulating economic activity. Loans and advances constituted 60.3% of total facilities, followed by Islamic banks' accounts at 29.9%, while the current debtor portion was 8.2% of the total. As for the distribution of facilities by currency, 87.6% were in Jordanian dinar and 12.4% in foreign currencies.
In terms of sectoral distribution, four main economic sectors accounted for about two-thirds of credit facilities: construction (22.6%), services and public utilities (17.2%), general trade (16.2%), and industry (11.1%). Some sectors experienced clear growth, with credit facilities provided to the general trade sector increasing by 16.5% and to services and utilities by 9.2%.
On another note, the report highlighted the growing trend in personal banking services, as banks in Jordan issued over 191 thousand credit cards of various types during the past year, and granted more than 136 thousand personal loans with a total value of 1.08 billion dinars. During the past year, banks also granted about 33.1 thousand housing and real estate loans, with a total value of 867.5 million dinars. Additionally, there were 49 thousand car loans with a total value reaching 629 million dinars. The expansion in individual loans and financing is part of the banks' efforts to enhance financial inclusion and improve access to financial services.
The report also stated that financial robustness indicators reflect the soundness of the Jordanian banking system. The ratio of non-performing loans was 5.6%, within internationally safe levels, reflecting the quality of the banks' credit portfolios. The coverage ratio was 74.5%, with the uncovered portion of non-performing loans being 6.1%. The capital adequacy ratio reached 18%, higher than the requirements set by the Central Bank of Jordan and Basel Committee. The legal liquidity ratio was 144.7%, exceeding the required minimum (100%) by a comfortable margin. The return on assets ratio was 1.1%, and the return on equity was 9.1%, reflecting the stability of profitability and the continued operational efficiency of the sector.
Regarding the gender distribution of individual customers at banks operating in Jordan, the report indicated that the ratio of male deposit holders constituted 63.2% of the total number of depositors at banks in Jordan, while the ratio of female deposit holders was about 36.8%. Male deposits accounted for 71.8% of the total value of individual deposits at banks in Jordan, compared to 28.2% for females. The ratio of male borrowers was 76.5% of the total number of individual borrowers, while the ratio of female borrowers was 23.5%. Male loans constituted 79.1% of the total value of individual loans from banks operating in Jordan, while the value of female loans was about 20.9%.
In terms of the geographical distribution of banks inside the kingdom, the report noted that the number of bank branches reached 869 branches and 53 offices, in addition to 2365 ATMs at the end of last year.
The report also discussed the performance of banks listed in the Amman Stock Exchange, in terms of the price index, trading volume, and participation of non-Jordanians in the ownership of Jordanian bank stocks. The report addressed interest rate structures on deposits and developments in interest rates on facilities, and the interest rate margin and developments in interest rates on monetary policy instruments, as well as reviewing the major new banking services introduced by banks operating in Jordan during the past year.
The report also highlighted significant developments in electronic payment systems, as the eFAWATEERcom system and CliQ system expanded markedly, along with an increase in the number of electronic wallets and financial accounts linked to them, as well as a rise in the number and value of transactions conducted through internet and mobile banking and point-of-sale channels. Banks also introduced a number of new digital banking services, enhancing digital transformation and supporting customer experience.
In the field of human resources, the report observed a development in the size of the workforce in banks in Jordan; by the end of last year, there were 22,996 employees. Banks continued to invest in training and qualification, with hundreds of employees participating in specialized training courses during the past year, and the participation rate of females in the banking workforce being among the highest in the economic sectors in Jordan.
Note that the "Major Banking Developments of the Year 2024" report included a significant expansion compared to the 2023 edition, in terms of content, analysis, and data, with new axes and tables added that reflect recent developments in the Jordanian banking sector, along with an enhanced focus on digital transformation and newly introduced banking services and updates to various statistical indicators.
The report reflects a clear picture of the distinguished performance of banks operating in Jordan and highlights their contribution to economic and social development. The report also confirms that the Jordanian banking sector enters the current year with strong financial foundations, a solid structure for liquidity and capital, and a clear strategy to enhance digital innovation and expand the base of financial inclusion, contributing to consolidating Jordan's position as an advanced financial and banking center in the Arab region.
