(Sukuk.net - Khaleej Times) Jordan Islamic Bank (JIB), a subsidiary banking unit of Albaraka Banking Group B.S.C. (ABG), announced that it achieved a substantial improvement in it its financial results for the first half of 2008.

It increased its net operating income by 54% and net income by 34% on the back of an increase in total assets by 17% and finance and investments by 36%. Similarly, deposits increased by 20% in the first half of 2008.

The financial results of the Bank showed an increase in gross operating income of 49% to reach US$67.36 million during the first half of 2008. After deducting operating expenses amounting to US$19.09, the net operating income achieved a significant 54% improvement to rise from US$31.28 million in the first half of 2007 to US$48.28 million in the first half of 2008.

This improvement reflects both the growth in income from financing and investment operations and the success of the Bank in controlling the operating costs as reflected by the drop of the operating expenses to operating income ratio from 31% in the first half of 2007 to 28% in the first half of 2008.

As a result of the increase in gross operating income, the net income increased by 34% to reach US$28.36 million in the first half of 2008. Subsequently, the annualized returns on average equity and average total assets showed significant improvements to reach 29% and 2.4% respectively in the first half of 2008.

During the first half of 2008, the assets of the Bank increased by 17% to reach US$2.57 billion compared to US$2.21 billion during the same period of last year.

This increase was the result of a significant growth in the murabaha, Ijarah Muntahia Bittamleek and investment operations which increased by 36% to reach US$1.65 billion in total as at the end of June 2008.

This growth was financed by customer deposit accounts and unrestricted investment accounts which increased by 20% to reach US$2.33 billion as at the end of June 2008, which financed 90.4% of the total assets of the Bank.

The remaining assets were financed by shareholders equity which was enhanced by 16% to reach a total of US$206 million in as at the end of June 2008.

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