Why is Arab Jordan Investment Bank ?
1
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.56% signifying inadequate buffers against its risk based assets
- Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 4.67%
- Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 15.56% signifying inadequate buffers against its risk based assets
- The bank has been able to generate a Return on Assets (avg) of 0.73% signifying low profitability per unit of total assets
2
Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 4.67%
3
Flat results in Jun 25
- CREDIT DEPOSIT RATIO(HY) Lowest at 65.28%
- GROSS NPA (%)(Q) Highest at 2.03%
- NET SALES(Q) Lowest at JOD 34.81 MM
4
With ROA of 0.49%, it has a expensive valuation with a 1.00 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.83%, its profits have fallen by -2.4%
- At the current price, the company has a high dividend yield of 6.8
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Major Banks)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Arab Jordan Investment Bank for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arab Jordan Investment Bank
17.05%
0.83
24.83%
Jordan General Index
41.13%
4.48
9.22%
Quality key factors
Factor
Value
Sales Growth (5y)
8.78%
EBIT Growth (5y)
0.01%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
0
Dividend Payout Ratio
93.81%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.00
EV to EBIT
6.41
EV to EBITDA
4.50
EV to Capital Employed
0.99
EV to Sales
0.75
PEG Ratio
NA
Dividend Yield
6.80%
ROCE (Latest)
15.48%
ROE (Latest)
7.44%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
5What is working for the Company
NII(Q)
Highest at JOD 15.17 MM
OPERATING PROFIT(Q)
Highest at JOD 6.1 MM
OPERATING PROFIT MARGIN(Q)
Highest at 17.53 %
PRE-TAX PROFIT(Q)
Highest at JOD 6.1 MM
-5What is not working for the Company
CREDIT DEPOSIT RATIO(HY)
Lowest at 65.28%
GROSS NPA (%)
(Q
NET SALES(Q)
Lowest at JOD 34.81 MM
Here's what is working for Arab Jordan Investment Bank
NII
Highest at JOD 15.17 MM
in the last five periodsMOJO Watch
The bank's income from core business is increasing
NII (JOD MM)
Operating Profit
Highest at JOD 6.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JOD MM)
Operating Profit Margin
Highest at 17.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JOD 6.1 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JOD MM)
Here's what is not working for Arab Jordan Investment Bank
Non Performing Loans (%)
Highest at 2.03%
in the last four Semi-Annual periodsMOJO Watch
Proportion of stressed loans given by the bank are increasing
Non Performing Loans (%)
Credit Deposit Ratio
Lowest at 65.28% and Fallen
In each half year in the last four Semi-Annual periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
Net Sales
Lowest at JOD 34.81 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JOD MM)






