Jordan Ahli Bank marks 60th anniversary with sophisticated five-year strategy

AMMAN — An advanced technological platform under a sophisticated five-year strategy will transform Jordan Ahli Bank into a highly developed provider of banking services.

This thrust was announced Sunday at a press conference to mark the 60th anniversary of Jordan Ahli Bank which was established in 1955 and opened its first branch in downtown Amman/Al Rida Street on June 14, 1956.

Jordan Ahli Bank,  the first national bank set up in [East] Jordan by founders Yousef Muasher and Suleiman Sukkar with a JD250,000 capital, the bank is now the Kingdom's fourth largest with a JD175 million capital and 62 branches in Jordan, Palestine and Cyprus besides 117 automated teller machines (ATMs).

Total assets of the bank, which handles 390,000 accounts, amounted to JD2.3 billion at the end of the first quarter of this year. Total deposits and credit facilities reached JD1.9 billion and JD1.2 billion respectively. 

Marwan Awad, chief executive officer and general manager of Jordan Ahli Bank, told journalists that to keep up with technological developments, the T24 banking software system by Temenos was embraced because of its advanced technology and rich functionality.

"We wanted in the past years to carry out  many improvements to develop our products and services but were at a disadvantage because our infrastructure devices could not be employed towards that end," he said.

Under the new 2015-2020 strategy, customer centricity will be the key to a sustainable future, Awad stressed.

"All decisions and onward drive will evolve around customer service within a drive to raise production efficiency depending on information technology," the chief executive officer said, mentioning organisational changes within this context. 

He added that Jordan Ahli Bank will also keep up with various needs by introducing diversified banking products.

Awad indicated that the bank intends to focus on the Jordanian market and to expand its local share which he estimated to be 10-12 per cent at present.

He noted that there is no intention to raise the bank's capital but revealed that the monetary authority in Palestine wants each bank under its jurisdiction to raise the capital by JD25 million over the coming three years. 

Awad described the business and profitability of the seven branches that Jordan Ahli Bank operates in Palestine as very good.

Noting that market conditions in Jordan were tough, the chief executive officer said local businesses are still reeling from the repercussions of the international financial crisis or struggling due to the current regional developments.

Although he acknowledged that businesses were facing difficulties, Awad described the 6.5 per cent interest charged on 25-year housing loans as not viable, especially when the interest paid on deposits range between 3.5 - 4 per cent.

The chief executive officer remarked that higher interest charged on other credits balance the disparity, expecting this year’s profit to be about JD40 million, 10 per cent higher than the figure in 2014. 

He disagreed that most lending favour unproductive or consumer purchases indicating that 40 per cent of Jordan Ahli Bank's financing flows to the corporate sector, 30 per cent to retail, and another 30 per cent to small- and medium-sized enterprises (SMEs).

"Ads appearing in the media give the wrong impression that banks are primarily engaged in retail and consumer lending," he said.  

Awad underlined SMEs as an area of particular importance, noting that the bank also supports this segment through the subsidiary Ahli Microfinance Company which now employs about 130 employees from a labour force of about  25 staff members when it was established in July 1999. 

The support for SMEs, he said, can be seen in the activities of the SME Academy Unit which organises workshops to empower entrepreneurs with necessary business skills.

Awad also spoke extensively about corporate social responsibility whether in terms of financial or cultural contributions noting in this regard the Numismatic Museum which displays a variety of coins and books demonstrating a wealth of scientific and historical heritage.

He credited Raja'i Muasher who chaired the bank for more than 25 years for the growth achieved by the bank. Muasher also assumed several positions in the government including the post of deputy prime minister.

Asked about the trading price of the bank's share on the Amman Bourse, he replied that the fair value should at least be around JD2.

He urged shareholders to be vigilant not to undermine the value of the share at any cost, expressing doubt that the treasury shares option, when the company buys its own shares, would prop up the share value.  

On Sunday, the share price of Jordan Ahli Bank closed at  JD1.21.