Circular on Postponement of 2019 Dividend Distribution for Licensed Jordanian Banks

10/1/ 4693
15/ Sha'ban/1441 AH

9/ April/2020 AD
Circular to Banks Operating in the Kingdom Subject: Final Financial Statements for 2019

Greetings,

With reference to the 2019 final financial statements approved by the Bank's Board of Directors or the Regional Management of branches of foreign banks operating in the Kingdom and certified by the auditors, and in light of the opinion of the Bank's auditor and the Islamic Banking Sharia Board regarding them, you may proceed with the necessary procedures regarding them in accordance with the prevailing legislation.

This, despite the high robustness and comfortable liquidity and solvency levels enjoyed by licensed banks in the Kingdom, however, in light of the international trends of many regulatory authorities worldwide to take into account the post-2019 financial statement events related to the potential negative effects of the corona pandemic, and to enhance the robustness of Jordanian banks within the international system, and to raise their capacity as well to continue providing the required financing to economic sectors at appropriate levels and conditions, thereby effectively supporting national efforts to reduce the economic impacts of the corona pandemic and also supporting the strength of economic activity recovery, it has been decided to postpone licensed Jordanian banks from distributing dividends to shareholders for 2019, to be distributed with the final statements for 2020, and any previous approval issued in this regard is considered void. This decision does not prevent branches of foreign banks operating in the Kingdom from transferring their profits to their headquarters as previously submitted, nor does it prevent Jordanian banks from distributing free shares to shareholders if they deem it appropriate.

Please accept our highest respect,

Governor
Dr. Ziad Fares

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Honorable Securities Commission Honorable Bank Auditors