On November 28th, 1982, Jordan Investment and Finance Bank (INVESTBANK) started its activities as a financial company under the name Jordan Investment and Finance Company with an authorized capital of JD6 million in which half was paid on the opening of its Initial Public Offering (IPO) while the rest was paid within a year of granting the final license.
A group of founders headed by the late Nizar Abdul Rahim Jardaneh set the first foundation stone for this financial institution which contributes to the development of the Jordanian financial industry. The aim was to provide the required financing to the economic sectors in order to enrich their achievements and increase opportunities of economic and social development in Jordan.
Founders aimed at being compatible with the economic growth requirements as well as achieving a good return for the shareholders, supporting national savings, and using resources to sustain financial activities.
- The Housing Bank
- Jordan Kuwait Bank
- Industrial Development Bank
- Social Security Corporation
- Jordan Drugstore Co.
- Several insurance companies
- Money exchange companies, and
- Commercial companies as well as
- Savings and housing funds
- Abdul Rahim Muneeb Jardaneh
- Nizar Abdul Rahim Jardaneh
- Mohammad Abdul Rahim Jardaneh
- Basel Abdul Rahim Jardaneh
- Khalil Al-Talhouni
- Osama Al-Talhouni
- Khaldoun Al-Talhouni
- Khalid Abu Al-Saoud
- Hani Qaddoumi
- Isam Al Taher
- Nizar Jardaneh as President
- Khalid Abu Al-Saoud as Vice-President
- Basel Jardaneh as General Manager
- Ja’far Al-Shami
- Raouf Abu Jaber
- Amin Al-Hasan
- Bassam Attari
- Khalil Al-Talhouni
- Michel Marto
- Nabil Qaddoumi
- Hassan Mango
Their objective was to strengthen the presence of the company, build a solid base and develop a successful scope of business to achieve its goals.
During the early stages, the company encountered an array of challenges. Operating under difficult conditions and limitations, the company was not permitted to accept deposits and introduce Revolving Credit Facilities. Other forms of credit facilities were permitted, under special regulations, such as bill payments, advances and loans which should not be less than six months, and the need to keep their volume within the framework of the proportions set by the Central Bank of Jordan (CBJ).
The company did not have the permission to finance foreign trade operations and open documentary credits or issue guarantees unless the entities had previously been granted credit facilities from the company. However, the results demonstrated the company’s ability to overcome those obstacles and achieve remarkable success thanks to the efforts of the Chairman of the Board, its members, and the General Manager.
On September 1st, 1989, according to the new regulations of the CBJ, a new era for the company was achieved when it was transformed into an investment bank – a vision of Nizar Jardaneh, the founders, and members of the Board.
This transition paved the way for the bank to overcome its previous challenges. The bank increased and expanded its line of products and services, now able to attract current deposits and issue cheque books for clients for the first time. This meant that it became almost similar to other commercial banks but without the ability to offer Revolving Credit Facilities or facilities for traditional commercial activities among others. This obstacle was a driver to take the necessary actions to transform the bank into a commercial bank marking a milestone in its journey.
A quick glance at the results of Investbank since its launch showed the exceptional development in its activities according to the first annual report in 1983 compared to its 27th in 2009.
According to the first annual report (1983), the total balance sheet reached JD20.5 million, while total deposits were JD14.7 million, net credit facilities reached JD8.7million, net income JD1.5 million, total net profit reached JD0.511 million, shareholders’ equity reached JD3.2 million, and net capital was JD6 million (JD4.5 million when licensed as a bank). The bank had a total number of 25 employees and one branch.
The 2009 annual report indicates that the bank’s total balance sheet was JD667 million, the customers’ deposits JD477.6 million, net direct credit facilities JD315.3 million, net income around JD24 million, total net profits JD7.2 million, shareholders’ equity JD93.2 million, paid up capital JD70 million (the paid up capital was raised in 2010 to reach JD77.5 million), 273 employees, and eleven branches. New additions also included three subsidiaries owned by the bank; Mawared for Brokerage, Al Imdad, and a leasing company. This is a quick idea of the success accomplished by the bank since its establishment until today.
A brief look at the development of the paid up capital of the bank shows that it has grown 17.2 times from JD4.5 million in 1989 to JD77.5 million in 2010. The successive increases were due to the profits of the bank with the exception of 1997, 2002, and 2003. In addition, the return on the bank’s shares increased since 1982 until the year 2009 from no more than JD1.238/share to revenues close to JD7.64 along with profits of JD1.152/share during this period.
Furthermore, the share had equaled 4.32 shares, a market value that reached JD6.49 towards the year-end of 2009. These indicators give us an idea of the high returns Investbank shareholders received.
In the meantime and following the rapid developments, the bank, under the leadership of the founder Nizar Jardaneh, supported by the Board of Directors and the General Manager, realized that the region was moving toward inter-economic activities and other global ventures.
The cooperation between Jordan and Palestine was very significant which encouraged the initiative to establish Al Quds Bank for Development and Investment as an affiliate bank in Palestine. It commenced its operations at its headquarters in Gaza City on January 18, 1997. It later relocated its operations to Ramallah in 1999 and correspondingly opened new branches in the Gaza Strip and the West Bank.
Throughout the years, the bank was characterized by its steady management through its various Board of Directors, which commenced with Nizar Jardaneh and Basel Jardaneh as well as Vice Presidents Kahlid Abu Al-Saoud and the late Shafiq Farhan Jumean. Today, it is Chaired by Bisher Jardaneh and Vice Chairman Ayman Jumean respectively.
With over 30 years of expertise, the bank supported companies and individuals on their foreign investment activities through comprehensive studies and promotion, becoming a pioneer in the sector. A few examples of INVESTBANK’s contribution to the investment environment include:
- Foreign Fund investments in the Amman Stock Exchange
- Establishment of new companies such as Emaar and Al Muttahidun for Real Estate
- Distinguished role in establishing Jordan Duty Free Shops Company
- Clearing Company for credit cards
The bank continues in updating and developing its products and services through its new corporate image, which reveals the determination to move ahead in its successful journey to meet the expectations of its clients, shareholders and society. Investbank is looking forward to serving the Jordanian business community, supporting economic innovation, and attracting foreign investments by providing a complete range of banking products and services within a friendly environment; leveraging the latest technologies and capacity building. The bank will always be grateful to its leaders, headed by founder Nizar Jardaneh who believed that leadership represented creative thinking, determination, and the ability to succeed even during the worst times and that sacrifice for the future is worth all the comprised efforts which can only be handled by those who live in the eternal history of the bank.