Retail Branches per Jordanians: Retail Banking Statistics in Jordan

Retail Branches per Jordanians Retail Banking Statistics in Jordan 6/6/2014 Project Finance Officer & Business Troubleshooter since June, 2013 BA (Hons) Business Management from the University of Greenwich – UK in July, 2012 Tariq Al-Basha - [email protected]

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Retail Branches per Jordanians Retail Banking Statistics in Jordan

2

Contents Consolidated Jordanian Banking Sector ........................................................................................................ 3

Jordan Administrative Divisions & Population .............................................................................................. 4

The Targeted Niche of the Study .................................................................................................................. 6

Irbid ........................................................................................................................................................... 6

Ajloun ........................................................................................................................................................ 7

Jerash ........................................................................................................................................................ 8

Mafraq....................................................................................................................................................... 9

Balqa ....................................................................................................................................................... 10

Amman .................................................................................................................................................... 11

Zarqa ....................................................................................................................................................... 12

Madaba ................................................................................................................................................... 13

Karak ....................................................................................................................................................... 14

Tafilah...................................................................................................................................................... 15

Ma’an ...................................................................................................................................................... 16

Aqaba ...................................................................................................................................................... 17

Analysis ....................................................................................................................................................... 18

Retail Banking Rating in Jordan by Total Number of Branches and Coverage ....................................... 18

Market Share for Retail Branches in Jordan ........................................................................................... 19

Highest and Lowest Geographic Coverage ............................................................................................. 20

Retail Branches per Jordanians across 12 Governorates ........................................................................ 21

Commercial National Banks’ Branches per Jordanians ........................................................................... 22

References .................................................................................................................................................. 23

About the Author ........................................................................................................................................ 24


3

Consolidated Jordanian Banking Sector

The Central Bank of Jordan (CBJ) classifies the banks into two major categories, namely

national banks and branches of foreign banks. Each of these categories is further divided into

commercial banks and Islamic Banks. Moreover, there are 13 (thirteen) national commercial

banks, 3 (three) national Islamic banks, 9 (nine) branches of foreign commercial banks and 1

(one) branch of foreign Islamic bank as shown in the figure below.

Consolidated Banking Sector

National Banks

Commercial Banks

Arab Bank Arab Banking Corporation

(Jordan)

Arab Jordan Investment Bank

Bank al Etihad

Bank of Jordan Cairo Amman

Bank

Capital Bank of Jordan

Housing Bank for Trade & Finance

InvestBank Jordan Ahli Bank

Jordan Commercial Bank

Jordan Kuwait Bank

Société Générale de Banque –

Jordanie

Islamic Banks

Islamic International Arab

Bank

Jordan Islamic Bank

Jordan Dubai Islamic Bank

Branches of Foreign Banks

Commercial Branches

Banque Audi BLOM Bank

Citi Bank Egyptian Arab

Land Bank

HSBC Bank Middle East

National Bank of Abu Dhabi

National Bank of Kuwait

Rafidain Bank

Standard Chartered

Islamic Banks

Al Rajhi Bank


4

Jordan Administrative Divisions &

Population

Jordan is divided into 12 provinces known as

governorates with a population of around 6.4

million. The below table shows the name of

these 12 governorates and their population and

the map of Jordan on the right side of this page

shows where each governorate is located in

which the numbers in the first row of the table

can assist to locate each governorate on the map.

Number Governorate Population

1. Irbid 1,137,100

2. Ajloun 146,900

3. Jerash 191,700

4. Mafraq 300,300

5. Balqa 428,000

6. Amman 2,473,400

7. Zarqa 951,800

8. Madaba 159,700

9. Karak 249,100

10. Tafilah 89,400

11. Ma’an 121,400

12. Aqaba 139,200

Total 6,388,000

It can be seen from the chart below that Amman, which is the capital city of Jordan, is the most

populous Jordanian city with almost 39% of the population living in the country.


5

While, Irbid that is located north of Amman and bordering Syria has the second largest

population of the Kingdom with around 18% of the population. Followed by Zarqa that is located

25 km east of the Jordanian capital Amman and bordering Saudi Arabia with a population of

nearly 15% of the Jordanian population.

The above-mentioned three governorates, which are Amman, Irbid and Zarqa, constitute 72% of

the population in the Kingdom. In addition, the other 9 governorates constitute the remaining

28% of Jordanian population.

18%

2% 3%

5%

7%

39%

15%

2% 4%

1% 2% 2%

The Percentage of the Total Population in Jordan

Irbid

Ajloun

Jerash

Mafraq

Balqa

Amman

Zarqa

Madaba

Karak

Tafilah

Ma’an

Aqaba


6

The Targeted Niche of the Study

This study is targeting the national Jordanian

commercial banks and the number of their branches

across the Kingdom.

Irbid

Irbid has 73 retail branches where every 15,576.71 of

Irbid citizens have one retail branch.

The two major banks competing over Irbid’s market share are first the Housing Bank for Trade &

Finance with 23 branches and second Cairo Amman Bank with 14 branches.

Number National Jordan Commercial Banks Number of Branches in Irbid Ratio

(1 Branch per Population)

1. Arab Bank 4 284,275.00

2. Arab Banking Corporation (Jordan) 1 1,137,100.00

3. Arab Jordan Investment Bank 1 1,137,100.00

4. Bank al Etihad 4 284,275.00

5. Bank of Jordan 9 126,344.44

6. Cairo Amman Bank 14 81,221.43

7. Capital Bank of Jordan 1 1,137,100.00

8. Housing Bank for Trade & Finance 23 49,439.13

9. InvestBank 1 1,137,100.00

10. Jordan Ahli Bank 7 162,442.86

11. Jordan Commercial Bank 3 379,033.33

12. Jordan Kuwait Bank 4 284,275.00

13. Société Générale de Banque – Jordanie 1 1,137,100.00

Total 73

Average 15,576.71


7

Ajloun

Aljoun has only 5 retail branches where every 29,380 of

its citizens have one retail branches.

The Bank of Jordan is controlling 40% of the market

share of Aljoun with 2 retail branches.

However, there are 9 out of 13 national commercial

banks have not entered yet the governorate of Ajloun.

Number National Jordan Commercial Banks Number of Branches in Ajloun Ratio


1. Arab Bank 1 146,900.00

2. Arab Banking Corporation (Jordan) 0 0

3. Arab Jordan Investment Bank 0 0

4. Bank al Etihad 0 0



7. Capital Bank of Jordan 0 0


9. InvestBank 0 0

10. Jordan Ahli Bank 0 0

11. Jordan Commercial Bank 0 0

12. Jordan Kuwait Bank 0 0

13. Société Générale de Banque – Jordanie 0 0

Total 5

Average 29,380.00


8

Jerash

With 8 retail branches and every 23,962.50 of its citizens

have one branch. Jerash is controlled by Cairo Amman

Bank that has 3 out the 8 existing branch in the

governorate.

However, 7 national commercial banks have not yet

entered the Jerash’s market.

Number National Jordan Commercial Banks Number of Branches in Jerash Ratio


1. Arab Bank 1 191,700.00

2. Arab Banking Corporation (Jordan) 1 191,700.00







9. InvestBank 0 0





Total 8

Average 23,962.50


9

Mafraq

Bordering Syria, Iraq and Saudi Arabia, Mafraq has 9

retail branches controlled mainly by Cairo Amman Bank

with 2 branches. Despite being served by 8 national

commercial banks, every 33,366.67 of Mafraq residents

have only one branch.

Number National Jordan Commercial Banks Number of Branches in Mafraq Ratio


1. Arab Bank 1 300,300.00








9. InvestBank 0 0





Total 9

Average 33,366.67


10

Balqa

The governorate of Balqa is served by 26 retail branches

with a strong competition over its market share between

the Housing Bank for Trade & Finance with 6 branches

and 5 branches each of the Arab Bank and Cairo

Amman Bank. Thus, every 16,461.54 of Balqa’s citizens

have one branch.

Number National Jordan Commercial Banks Number of Branches in Balqa Ratio


1. Arab Bank 5 85,600.00








9. InvestBank 0 0





Total 26

Average 16,461.54


11

Amman

With all national commercial banks competing over

Amman’s population of 2.5 million where 6,666.85

individuals have one retail branch, Amman has 371 retail

branches that is more than 60% of the Kingdom’s retail

branches of the 13 national commercial banks.

The Housing Bank for Trade & Finance, which has 64

branches, controls more than 17% of Amman’s market

share; followed by the Arab Bank with 50 branches and more than 13% of the market share of

Amman

Number National Jordan Commercial Banks Number of Branches in

Amman

Ratio


1. Arab Bank 50 49,468.00


3. Arab Jordan Investment Bank 11 224,854.55




7. Capital Bank of Jordan 8 309,175.00


9. InvestBank 7 353,342.86




13. Société Générale de Banque – Jordanie 11 224,854.55

Total 371

Average 6,666.85


12

Zarqa

The Kingdom’s third largest city after Amman and Irbid,

Zarqa enjoys having 53 retail branches of all the national

commercial banks where every 17,958.49 residents in

Zarqa have one retail branch.

The Housing Bank for Trade & Finance has the highest

number of branches in the governorate which are 14

branches.

Number National Jordan Commercial Banks Number of Branches in Zarqa Ratio


1. Arab Bank 7 135,971.43








9. InvestBank 1 951,800.00





Total 53

Average 17,958.49


13

Madaba

Every 12,284.62 citizens have one retail branch in

Madaba that is served with 13 branches.

The Jordan Kuwait Bank controls almost a quarter of its

market shares with 3 branches; followed by Cairo

Amman Bank with 2 branches.

Number National Jordan Commercial Banks Number of Branches in

Madaba

Ratio


1. Arab Bank 1 159,700.00








9. InvestBank 0 0





Total 13

Average 12,284.62


14

Karak

Controlling one third of Karak’s market share, the

Housing Bank for Trade & Finance has 5 branches in

Karak and followed by Cairo Amman Bank with 3

Branches; together controlling more than half of the

market share of the governorate.

In addition, every 16,606.67 citizens have one retail

branch of Karak’s 15 retail branches.

Number National Jordan Commercial Banks Number of Branches in Karak Ratio


1. Arab Bank 1 249,100.00








9. InvestBank 0 0





Total 15

Average 16,606.67


15

Tafilah

With only 4 branches that are controlled equally by the

major banks of Jordan, Tafilah’s citizens have one retail

branch for every 22,350 citizens.

Number National Jordan Commercial Banks Number of Branches in Tafilah Ratio


1. Arab Bank 1 89,400.00




5. Bank of Jordan 0 0




9. InvestBank 0 0





Total 4

Average 22,350.00


16

Ma’an

Bordering Saudi Arabia and having the city of Petra,

Ma’an has 14 retail branches of 4 national commercial

banks where every 8,671.43 individuals have one retail

branch.

The Ma’an’s market is dominated by the Housing Bank

for Trade & Finance and Cairo Amman Bank with 6 and

5 branches respectively.

Number National Jordan Commercial Banks Number of Branches in Ma’an Ratio


1. Arab Bank 2 60,700.00








9. InvestBank 0 0

10. Jordan Ahli Bank 0 0




Total 14

Average 8,671.43


17

Aqaba

Having Jordan’s only port and access to the sea, Aqaba

has been covered by all national commercial banks. The

governorate has 21 retail branches where every

6,628.57 citizens have one retail branch.

Cairo Amman Bank controls almost a quarter of the

market share in Aqaba with 5 branches.

Number National Jordan Commercial Banks Number of Branches in Aqaba Ratio


1. Arab Bank 2 69,600.00








9. InvestBank 1 139,200.00





Total 21

Average 6,628.57


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Analysis

With a total of 612 retail branches across the Kingdom, it can be deducted that every 10,437.91

Jordanians have one retail branch.

Retail Banking Rating in Jordan by Total Number of Branches and Coverage

The Housing Bank for Trade & Finance has the highest number of branches in Jordan with 125

branches covering all of Jordanian governorates; followed by Cairo Amman Bank, Arab and

Bank of Jordan respectively that also cover all of Jordanian governorates. Furthermore, Jordan

Ahli Bank covers 10 Jordanian governorates; despite having lower number of branches than

Jordan Kuwait Bank.

In spite of covering only half of the Kingdom’s governorates, Bank al Etihad has more retail

branches than Arab Banking Corporation and Jordan Commercial Bank who cover 9 and 8

governorates respectively. Likewise, Société Générale de Banque – Jordanie and Arab Jordan

Investment Bank also cover half of the governorates in the Kingdom with 16 and 15 retail

branches respectively. Lastly, Capital Bank of Jordan and InvestBank only cover one third of

the Jordanian governorates with 12 and 10 retail branches; mainly in the major 4 cities.

Number Commercial National Jordanian Banks Total Number of Branches Coverage out of 12 Governorates %

1. The Housing Bank for Trade & Finance 125 12 out 12 100% 2. Cairo Amman Bank 87 12 out 12 100% 3. Arab Bank 76 12 out 12 100% 4. Bank of Jordan 69 12 out 12 100% 5. Jordan Kuwait Bank 59 8 out 12 66.67% 6. Jordan Ahli Bank 50 10 out 12 83.34% 7. Bank al Etihad 36 6 out 12 50% 8. Jordan Commercial Bank 29 8 out 12 66.67% 9. Arab Banking Corporation (Jordan) 28 9 out 12 75% 10. Société Générale de Banque – Jordanie 16 6 out 12 50% 11. Arab Jordan Investment Bank 15 6 out 12 50% 12. Capital Bank of Jordan 12 4 out 12 33.34% 13. InvestBank 10 4 out 12 33.34% Total 612


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Market Share for Retail Branches in Jordan

The Housing Bank for Trade & Finance controls the largest market share of 20% of the retailing

banking sector as it has 125 branches, while InvestBank has the lowest market share of the

sector with almost 2% and 10 retail branches.

20%

14%

12%

11%

10%

8%

6%

5%

5%

3% 2%

2% 2%

Market Share for Retail Branches in Jordan

The Housing Bank for Trade & Finance Cairo Amman Bank

Arab Bank Bank of Jordan

Jordan Kuwait Bank Jordan Ahli Bank

Bank al Etihad Jordan Commercial Bank

Arab Banking Corporation (Jordan) Société Générale de Banque – Jordanie

Arab Jordan Investment Bank Capital Bank of Jordan

InvestBank


20

Highest and Lowest Geographic Coverage

The residents of 4 Jordanian governorates have the highest access all the national Jordanian

commercial banks which are Amman, Irbid, Zarqa and Aqaba. In the same time, Madaba,

Balqa, Karak, Mafraq and Jerash have moderate access to between 6 to 10 national Jordanian

commercial banks out of 13 the national Jordanian commercial banks. However, Ma’an, Aljoun

and Tafilah have lowest access to only 4 the national Jordanian commercial banks out of 13

national Jordanian commercial banks.

Number Governorates Total Number of Branches Total Number of National Commercial Banks out of 13 %

1. Amman 371 13 out of 13 100% 2. Irbid 73 13 out of 13 100% 3. Zarqa 53 13 out of 13 100% 4. Balqa 26 9 out of 13 69.2% 5. Aqaba 21 13 out of 13 100% 6. Karak 15 9 out of 13 69.2% 7. Ma’an 14 4 out of 13 30.8% 8. Madaba 13 10 out of 13 76.9% 9. Mafraq 9 8 out of 13 61.5% 10. Jerash 8 6 out of 13 46.1% 11. Ajloun 11 4 out of 13 30.8% 12. Tafilah 4 4 out of 13 30.8%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Coverage Percentage per Governorate

Coverage Percentage per Governorate


21

Retail Branches per Jordanians across 12 Governorates

When divided the total number of the Jordan population which is around 6,388,000 by the total

number of retail branches that is 612 branches, it came out the average of 10,437.91

Jordanians per one retail branch. Therefore, this average will be used with the average of the

population for each governorate to know if these governorates are above or below the average.

Number Governorates One Branch per Jordanians Above or Below the Average of 10,437.91

1. Aqaba 6,628.57 3,809.34 2. Amman 6,666.85 3,771.06 3. Ma’an 8,671.43 1,766.48 4. Madaba 12,284.62 - 1,846.71 5. Irbid 15,576.71 - 5,138.80 6. Balqa 16,461.54 - 6,023.63 7. Karak 16,606.67 - 6,168.76 8. Zarqa 17,958.49 - 7,520.58 9. Tafilah 22,350.00 - 11,912.09 10. Jerash 23,962.50 - 13,524.59 11. Ajloun 29,380.00 - 18,942.09 12. Mafraq 33,366.67 - 22,928.76

Hence, it came out that 3 Jordanian governorates topped by Aqaba, Amman and Ma’an

respectively are above this average, while the rest 9 governorates are below this average;

including surprisingly Irbid and Zarqa.

-30,000.00

-20,000.00

-10,000.00

0.00

10,000.00

20,000.00

30,000.00

40,000.00

One Branch per Jordanians

Above or Below the Average of 10,437.91

Average


22

Commercial National Banks’ Branches per Jordanians

It is shown from the table and chart below that the Housing Bank for Trade & Finance has the

lowest number of Jordanians per one retail branch. On the other hand, the InvestBank has

highest number of Jordanians per one retail branch.

Number Commercial National Jordanian Banks Total Number of Branches One Branch Per Jordanians

1. The Housing Bank for Trade & Finance 125 51,104.00 2. Cairo Amman Bank 87 73,425.29 3. Arab Bank 76 84,052.63 4. Bank of Jordan 69 92,579.71 5. Jordan Kuwait Bank 59 108,271.19 6. Jordan Ahli Bank 50 127,760.00 7. Bank al Etihad 36 177,444.44 8. Jordan Commercial Bank 29 220,275.86 9. Arab Banking Corporation (Jordan) 28 228,142.86 10. Société Générale de Banque – Jordanie 16 399,250.00 11. Arab Jordan Investment Bank 15 425,866.67 12. Capital Bank of Jordan 12 532,333.33 13. InvestBank 10 638,800.00

-

100,000.00

200,000.00

300,000.00

400,000.00

500,000.00

600,000.00

700,000.00

One Branch Per Jordanians (Each Bank)


23

References [Arab Bank Plc] http://www.arabbank.com.jo/

[Arab Banking Corporation (Jordan)] http://www.arabbanking.com.jo/

[Arab Jordan Investment Bank] http://www.ajib.com/en

[Bank al Etihad] http://www.bankaletihad.com/

[Bank of Jordan] http://www.bankofjordan.com/boj50/index.htm

[Cairo Amman Bank] http://www.cab.jo/

[Capital Bank of Jordan] http://www.capitalbank.jo/

[The Housing Bank for Trade & Finance] http://www.hbtf.com/wps/portal

[Invest Bank] http://www.investbank.jo/

[Jordan Ahli Bank] http://www.ahli.com/

[Jordan Commercial Bank] http://www.jcbank.com.jo/en

[Jordan Kuwait Bank] http://www.jkb.com/

[Société Générale de Banque – Jordanie] http://www.sgbj.com.jo/sgbj/en/Home

http://www.arabbank.com.jo/

http://www.arabbanking.com.jo/

http://www.ajib.com/en

http://www.bankaletihad.com/

http://www.bankofjordan.com/boj50/index.htm

http://www.cab.jo/

http://www.capitalbank.jo/

http://www.hbtf.com/wps/portal

http://www.investbank.jo/

http://www.ahli.com/

http://www.jcbank.com.jo/en

http://www.jkb.com/

http://www.sgbj.com.jo/sgbj/en/Home


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About the Author

Awarded First Class Honours in Bachelor of

Arts (Honours) Business Management from

the University of Greenwich – UK.

Working as a Project Finance Officer for an

Iraqi-owned Group in which representing the

CEO and shareholders' interest in 23

companies, subsidiaries and affiliates in Iraq,

Jordan, Lebanon and UAE.

Previous works related to the Jordanian

Banking Sector:

1. Jordan's Commercial Banking Sector

Ranking as of June 30, 2013.

2. Are Jordanian Banks Jordanian?

3. The External Auditors' Market Share

in the Jordanian Banking Sector in

2012.

Key Skills:

1. Budgeting & Forecasting

2. Business Development, Planning & Troubleshooting

3. Cost Analysis & Cutting

4. Entrepreneurship, SMEs & Local Development

5. Financial Analysis, Modeling & Studies

6. Feasibility & Research Studies

7. Legal Writing

Economy & Finance

Retail Branches per Jordanians: Retail Banking Statistics in Jordan