Ammon News - *Non-performing debts at banks increased in 2023

*Non-performing debts reached 5% in 2023

*17.4 capital adequacy ratio of banks operating in Jordan in 2023

*Net profit of banks operating in the Kingdom declined by 39.7% to reach JD528 million in 2023

Ammon news -Ahmad Alhyari- The percentage of non-performing debts, out of the total debts of banks, increased in 2023 to reach 5%, compared to 4.5% recorded in 2022, according to preliminary data issued by the Central Bank of Jordan (CBJ).

The volume of non-performing debts, after excluding interest suspended at the end of 2023, amounted to JD1.592 billion, an increase from the levels recorded at the end of 2022, which amounted to approximately JD1.41 billion at that time, according to the preliminary financial strength data of the CBJ, which Ammon reviewed.

Regarding the percentage of coverage of non-performing debts with allocations, data from the CBJ stated that it recorded 78.4% of these non-performing debts at the end of 2023.

It is noteworthy that the capital adequacy ratio of banks operating in Jordan recorded in 2023 a level of 17.4%, while the capital adequacy ratio reached 17.4% at the end of 2022.

The net profit of banks operating in the Kingdom amounted to JD528 million in 2023, a decline of approximately 39.7% compared to profits at the end of 2022, which amounted to JD875.8 million, while the net profit of banks "after tax" amounted to JD355.1 million, a decline of approximately 40.7% from the levels recorded at the end of 2022 at JD598.6 million.

The return on bank assets rose to 1.2% in 2023, while the return on shareholders’ equity rose to 10.2% compared to 8.8%.