AMMAN — The Association of Banks in Jordan (ABJ) released its annual report, “Key Banking Developments in Jordan 2024,” which highlighted robust performance across assets, deposits, lending, and profitability, alongside continued progress in financial inclusion and digital transformation.

 

According to the report, total assets of licensed banks in Jordan increased by JD3.68 billion, or 5.6 per cent, reaching JD69.85 billion at the end of 2024, compared with JD66.18 billion in 2023.

 

These assets accounted for 184.4 per cent of the Kingdom’s gross domestic product (GDP) at current prices, underscoring the sector’s central role in financing national economic activity, according to an ABJ statement sent to The Jordan Times.

 

Domestic assets rose by 5.2 per cent to JD63.05 billion, driven primarily by a 14.5 per cent increase in claims on the Central Bank of Jordan, which reached JD9.02 billion.

 

Claims on the central government grew by 4.1 per cent to JD14.62 billion, while lending to the private sector increased by 2.3 per cent to JD30.32 billion.

 

While claims on public non-financial corporations surged by 23.9 per cent to JD1.72 billion, reflecting rising investment and financing activity.

 

Foreign assets expanded by 9.3 per cent to JD6.8 billion, supported by a 58.8 per cent rise in other loans and a 20.1 per cent increase in shares and equity holdings, the statement added, indicating balanced and diversified growth across both domestic and international portfolios.

 

Deposits also continued to grow steadily, reflecting sustained public confidence in the banking system. Total deposits at licensed banks rose by JD2.95 billion, or 6.8 per cent, to JD46.7 billion by the end of 2024, compared with JD43.74 billion in 2023.

 

Private sector deposits accounted for the majority of this increase, rising by JD2.67 billion, or 6.7 per cent, to JD42.54 billion, while public sector deposits grew by JD227 million, or 6.8 per cent, to JD3.59 billion, according to the ABJ.

 

Credit activity also expanded, reflecting the sector’s continued support for businesses and households. Total credit facilities provided by licensed banks increased by 4.2 per cent to JD34.78 billion by the end of 2024, with 87.6 per cent denominated in Jordanian dinars.

 

Key sectors benefiting from this lending included construction, trade, services and utilities, and industry, together representing around two-thirds of total loans, the report showed.

 

Trade financing grew by 16.5 per cent, while lending to services and utilities rose by 9.2 per cent, signalling renewed momentum in business and infrastructure investment.

 

The ratio of non-performing loans stood at 5.6 per cent, within safe international limits, while the coverage ratio reached 74.5 per cent.

 

The capital adequacy ratio rose to 18 per cent, well above both the Central Bank of Jordan’s minimum requirement of 12 per cent and the Basel Committee’s benchmark of 10.5 per cent.

 

Liquidity remained one of the sector’s defining strengths, with the legal liquidity ratio reaching 144.7 per cent by the end of 2024, up from 142.5 per cent in 2023.

 

The ABJ report also underscored Jordan’s progress in financial inclusion, providing detailed data on the gender distribution of depositors and borrowers.

 

By the end of 2024, there were approximately 4.38 million individual depositors, 2.77 million men and 1.61 million women, with men representing 63.2 per cent of depositors and women 36.8 per cent.

 

In terms of deposit value, men held JD22.2 billion compared with JD8.7 billion for women, meaning men accounted for 71.8 per cent of total individual deposits and women 28.2 per cent.

 

While a gender gap persists, the ABJ noted that the rising share of women among depositors reflects growing financial awareness and access to banking services.

 

By the end of 2024, around 1.12 million individuals had active loans, including 855,955 men and 263,434 women.

 

Men accounted for 76.5 per cent of borrowers, while women represented 23.5 per cent, a trend that, while still imbalanced, signals gradual progress in women’s financial empowerment and access to credit, according to the statement.

 

The ABJ stressed that Jordanian banks are working to narrow the gender gap through specialised lending programmes, support for female entrepreneurship, and tailored digital banking services, in line with the Central Bank’s broader financial inclusion strategy.

 

The report also highlighted advances in digitalisation and human capital development. Banks continued to expand digital payment solutions such as CliQ and eFAWATEERcom and recorded strong growth in mobile wallets and electronic transactions.

 

Nearly 23,000 banking staff participated in professional training programmes during 2024 to strengthen digital skills and leadership capabilities, the ABJ noted.