Market Report, "Jordan Commercial Banking Report Q3 2010", published

July 18, 2010 - PRLog -- The central bank's interest rate cuts in February should encourage commercial banks to draw down the  sizeable excess reserves they are holding there. Coupled with the brightening macroeconomic outlook,  this should mean loan growth continues to  pick up during 2010.  In line with our forecast for the Jordanian  economy to recover slowly over the medium  term, we expect growth in the banking sector  to remain subdued. We forecast total assets  to grow by an annual average of 7.7% during  2010-2014, down from 12.4% in 2005-2009,  with a similar trend for loan growth. This  almost mirrors our forecast average annual  nominal GDP growth rate of 7.1% for the  same period. With the Jordanian banking  system is already mature - total assets are  equivalent to about 200% of nominal GDP -  we see little scope for it to grow much faster  than the overall economy.    Despite unspectacular forecast growth rates, we nonetheless regard the banking sector as inherently  stable. The government's deposit guarantee scheme, extended to the end of 2010, will continue to give  customers confidence in the system. The monetary authorities' policy of maintaining a spread between  domestic and US interest rates (in the context of a pegged currency) will mean that keeping funds in  Jordanian banks remains attractive for depositors. We forecast deposit growth to come in at 9.0% and  8.0% year-on-year (y-o-y) in 2010 and 2011 respectively.  The conservatism of Jordanian banks, as epitomised by their relatively low loan-to-deposit ratios, also  supports the sector's stability. After reaching an all-time high of 77.5% in October 2008, the loan-todeposit  ratio has been steadily falling, reaching 67.5% in February 2010. We expect it to stabilise at 65-  70% over the coming years.

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Report Table of Contents:

Executive Summary
- Table: Levels (JODbn)
- Table: Levels (US$bn)
- Table: Levels At April 2010
- Table: Annual Growth Rate Projections 2010-2014 (%)
- Table: Ranking Out Of 59 Countries Reviewed In 2010
- Table: Projected Levels (JODbn)
- Table: Projected Levels (US$bn)
SWOT Analysis
- Jordan Commercial Banking SWOT
- Jordan Political SWOT
- Jordan Economic SWOT
- Jordan Business Environment SWOT
Business Environment Outlook
- Commercial Banking Business Environment Ratings
- Table: Jordan Commercial Banking Business Environment Rating
- Commercial Banking Business Environment Rating Methodology
- Table: Middle East & Africa Commercial Banking Business Environment Ratings
Global Commercial Banking Outlook
Middle East Banking Sector Outlook
- Table: GCC Commercial Banks Profits, Q109-Q110 (US$mn)
- Table: Comparison Of Loan/Deposit, Loan/Asset & Loan/GDP Ratios
- Table: Anticipated Developments In 2010
- Table: Comparison Of Total Assets, Client Loans & Client Deposits (US$bn)
- Table: Comparison Of US$ Per Capita Deposits (Late 2009)
- Table: Interbank Rates & Bond Yields
Islamic Banking Sector Outlook
Jordan Banking Sector Outlook
Economic Outlook
- Table: Jordan Economic Activity, 2007-2014
Competitive Landscape
- Market Structure
- Protagonists
- Table: Protagonists In Jordan's Commercial Banking Sector
- Definition Of The Commercial Banking Universe
- List Of Banks
- Table: Commercial Banks In Jordan (June 2010)
Company Profiles
- Bank of Jordan
- Table: Stock Market Indicators
- Table: Balance Sheet (JODmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Arab Banking Corporation (Jordan)
- Table: Key Statistics For Arab Banking Corporation, 2005-2009 (JODmn)
- Arab Bank
- Table: Key Statistics For Arab Bank, 2006-2009 (JODmn)
- Arab Jordan Investment Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (JODmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Cairo Amman Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (JODmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
- Capital Bank of Jordan
- Table: Stock Market Indicators
- Table: Balance Sheet (JODmn)
- Table: Balance Sheet (US$mn)
- Table: Key Ratios (%)
- Jordan Commercial Bank
- Table: Stock Market Indicators
- Table: Balance Sheet (JODmn, unless stated)
- Table: Balance Sheet (US$mn, unless stated)
- Table: Key Ratios (%)
BMI Banking Sector Methodology
- Commercial Bank Business Environment Rating
- Table: Commercial Banking Business Environment Indicators And Rationale
- Table: Weighting Of Indicators

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.