69.85 Billion Dinars.. A New Leap in Jordanian Banks' Assets in 2024

SadaNews - The Jordan Banks Association issued the report "Key Banking Developments for 2024," which includes a wide range of data, information, and banking indicators concerning banks operating in Jordan at both the aggregate and individual levels, reflecting the resilience of the banking sector and its continued growth and stability. The report provides this data and indicators accurately, relying on data issued by the Central Bank of Jordan and the banks operating in Jordan.

The report reflects a positive picture of the performance of the Jordanian banking sector during 2024, as it achieved stable growth in key financial indicators, indicating its ongoing resilience and capability 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 a 5.2% increase in domestic assets to reach 63.05 billion dinars, along with a 9.3% growth in foreign assets to reach 6.8 billion dinars. The assets of banks constituted 184.4% of the Gross Domestic Product at current prices, reflecting the pivotal role of banks in financing economic activity and providing the liquidity necessary for growth.

In a parallel context, the report showed that the total deposits at banks in Jordan witnessed remarkable growth during 2024, as total deposits increased by 6.8% to reach approximately 46.7 billion dinars. This increase reflected the growth of both private and public sector deposits. Deposits of all types (demand, saving, and time deposits) saw an increase throughout 2024. These figures are evidence of ongoing trust in Jordanian banking institutions and their stability, and reflect the robustness of the relationship between banks and their individual and corporate clients.

According to the report, the credit facilities granted by licensed banks increased by 4.2% to reach 34.78 billion dinars by the end of 2024, confirming the continued active financing role of banks in stimulating economic activity. Loans and advances constituted 60.3% of total facilities, followed by Islamic bank receivables at 29.9%, while the share of current accounts reached 8.2% of the total. In terms of currency distribution, 87.6% of the facilities were in Jordanian dinars, while 12.4% were 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 saw clear growth, as facilities provided to the general trade sector increased by 16.5%, and those for the services and utilities sector increased by 9.2%.

On another front, the report highlighted the increasing growth in retail banking services, as banks in Jordan issued more than 191,000 credit cards of various types during 2024, and granted over 136,000 personal loans with a total value of 1.08 billion dinars. Additionally, banks granted around 33,100 housing and real estate loans in 2024, with a total value of 867.5 million dinars. The number of car loans reached 49,000 loans, with a total value reaching 629 million dinars. The expansion in individual loans and financing is part of banks' efforts to enhance financial inclusion and improve access to financial services.

The report indicated that the financial resilience indicators reflect the soundness of the Jordanian banking system. The ratio of non-performing loans stood at 5.6%, which is within internationally safe levels, reflecting the quality of banks' credit portfolios. The coverage ratio was 74.5%, making the uncovered portion of non-performing loans 6.1%. The capital adequacy ratio reached 18%, exceeding the requirements of the Central Bank of Jordan and Basel Committee. The legal liquidity ratio reached 144.7%, comfortably above the required minimum (100%). The return on assets rate was 1.1%, and the return on equity rate was 9.1%, reflecting stability in profitability and ongoing operational efficiency in the sector.

Regarding the gender distribution of individual clients at banks operating in Jordan, the report indicated that male depositors represented 63.2% of the total number of depositors at these banks, while female depositors accounted for approximately 36.8%. Male deposits constituted 71.8% of the total value of individual deposits at banks in Jordan, compared to 28.2% for females. The percentage of male borrowers was 76.5% of the total number of individual borrowers, while female borrowers accounted for 23.5%. Male loans made up 79.1% of the total value of individual loans from banks operating in Jordan, while the value of female loans was about 20.9%.

Concerning the geographical distribution of banks within the kingdom, the report noted that the number of bank branches reached 869 branches and 53 offices, in addition to 2365 ATMs by the end of 2024.

The report also discussed the performance of listed banks on the Amman Stock Exchange in terms of the stock price index and trading volume, as well as the contribution of non-Jordanians to the ownership of Jordanian bank shares. It examined the structure of interest rates on deposits, developments in interest rates on facilities, interest margins, and developments in interest rates on monetary policy instruments, and showcased the most important new banking services that banks operating in Jordan introduced during 2024.

The report also highlighted the significant developments in electronic payment systems, as services such as the eFAWATEERcom system and the CliQ system expanded remarkably, along with an increase in the number of electronic wallets and associated financial accounts, as well as the rise in the number and value of transactions conducted through online and mobile banking channels and points of sale. Banks also introduced a number of new digital banking services that enhance digital transformation and support customer experience.

In the field of human resources, the report noted an increase in the number of workers in banks in Jordan; the number of employees reached 22,996 by the end of 2024. Additionally, banks continued to invest in training and qualification, with hundreds of employees participating in specialized training courses throughout 2024, and the percentage of female participation in the banking workforce became one of the highest percentages in Jordanian economic sectors.

It is worth noting that the "Key Banking Developments for 2024" report included a significant expansion compared to the 2023 edition in terms of content, analysis, and data, with the addition of new axes and tables reflecting recent developments in the Jordanian banking sector, while enhancing the focus on digital transformation and newly introduced banking services, and updating various statistical indicators.

The report provides a clear picture of the distinguished performance of banks operating in Jordan and highlights their contribution to economic and social development, confirming that the Jordanian banking sector enters 2025 with strong financial foundations, a solid structure for liquidity and capital, and a clear strategy to enhance digital innovation and expand the financial inclusion base, contributing to cementing Jordan's position as a developed financial and banking center in the Arab region.