international network

Jordan continued to show resilience and maintain macroeconomic stability in 2024, reflecting the steadfast implementation of sound macroeconomic policies and structural reforms that have enabled the Hashemite Kingdom to weather successive external impacts. The recent upgrades to Jordan’s credit ratings – the first in over 20 years – testify to the credibility of economic policies formulated and implemented by the authorities.

The continuation of the regional conflict and disruption to trade routes is expected to dampen Jordan’s economy, affecting consumer and investor sentiment, as well as tourism, trade and construction. However, the overall impact is expected to remain relatively contained; Jordan’s economic growth is projected by the IMF to moderate to 2.4% in 2024, with weaker domestic demand offset by a stronger performance in net exports. Growth is projected at 2.5% for 2025. Inflation remains low at 2%, thanks to the Central Bank of Jordan’s (CBJ) firm commitment to monetary stability and safeguarding the exchange rate peg.

Amidst the various impacts, Jordan’s financial sector remained healthy and well capitalised during the year in review. The current account deficit – projected to narrow to 4.4% of GDP at the close of the year – will enable CBJ to further build reserve buffers, and to widen slightly to 4.7% of GDP in 2025. The adoption of contractionary monetary policy around the globe however, elevated funding costs to unprecedented levels, leading to fierce competition between local banks to preserve their deposit base. Customer appetite towards borrowing was also reduced as a result.

Against this backdrop, alrajhi bank – Jordan (ARBJ) recorded a profitable performance with a significant 23% YoY increase in net income in 2024. This was driven by strong performances in yield income and fee-based revenue, as well as equally effective management of operational expenses and cost of funds. The overseas branch’s strategic focus on optimising its business growth and enhancing efficiency contributed to improving key financial indicators, including a lower cost-to-income ratio, higher return on assets (ROA) and return on equity (ROE). This performance positioned ARBJ ahead of many competitors in the Jordanian banking sector during the year in review.

Opening of new HQ in Amman

The year in review marked a major milestone for ARBJ, with the international branch opening its new headquarters in the capital city of Amman in September 2024. The inauguration ceremony was held under the patronage of the Governor of CBJ, His Excellency Dr Adel Sharkas, and was graced by senior leadership of alrajhi group from both Saudi Arabia and Jordan offices.

The Amman headquarters marks a significant strategic milestone, a reflection of ARBJ’s growth and expansion since its initial entry to the Jordanian market in 2011. Today, the ARBJ network has grown from the initial 2 branches to 13 across various governorates in the Hashemite Kingdom, with 3 of the branches being opened during this reporting period. The new headquarters also reflects alrajhi bank’s strengthened position in the Jordanian market, which remains promising and significant.

Upgrading technology infrastructure and systems

In 2024, a number of technology infrastructure upgrades were carried out at ARBJ; the overseas branch reached a strategic milestone with the implementation of a new Core Banking System (CBS) during the year in review. The new, comprehensive system with a digital core addressed the limitations of the previous legacy system in order to meet the rapidly evolving pace of Jordan’s banking sector.

The implementation of the CBS paved the way for ARBJ to deploy a digital banking platform for individuals and corporations that powered both online and mobile banking applications, with innovative services and features for ultimate customer convenience. The overseas branch also deployed a new financing system integrated to the CBS, to support the overall financing workflow of ARBJ, including transfers and account openings.

One of the key deliverables from the infrastructure and systems upgrade was the digital account opening service, a highly anticipated enhancement in customer experience. The implementation of digital onboarding marked a pivotal point in ARBJ’s digital transformation journey, and was complemented by a comprehensive digital promotional campaign, achieving remarkable results; the campaign reached over 3 million social media accounts in Jordan, garnered more than 2 million video views, and drove 100,000 new users to the ARBJ website. The campaign resulted in more than 22,000 new mobile app downloads, and the opening of over 3,000 new accounts digitally, with a total deposit amount exceeding JOD 1 Mn.

The new CBS also enabled ARBJ to leverage a broader suite of solutions, providing customers with additional digital features and facilities such as cardless payments, international transfers, cards management, additional account opening options, as well as the ability to book appointments, requests for a safe deposit box, or certificates, among other services. The alrajhi Mobile JO app also provides a user-centric experience for easy account and card management, with new features such as bill payments as well as an instant financing option without the need to physically visit a branch, making banking more convenient and efficient. The app complies with industry standards and integrates multiple market leading payment services including Apple Pay, DOB, and Jordan’s own instant pay system CliQ, as per CBJ instructions. The Customer Relationship Management (CRM) was also integrated to the mobile app and internet banking system to further enhance, enrich, and personalise the customer experience.

At the close of the year in review, over 50% of ARBJ customers were registered on its mobile app and internet banking platforms.

Alongside this major technology infrastructure upgrade, several IT services that were outsourced also transitioned to in-house services, providing the overseas branch with greater autonomy across multiple operational areas, also leading to improvements in efficiency and flexibility.

ARBJ collaborated with Neoleap – the group’s fintech subsidiary – in 2023 to launch alrajhi’s digital wallet urpay to the Jordanian Market. With services such as instant payments and transfers, bill payments, virtual card issuance among other features, urpayJO was well received by the evolving consumer market, counting over 5000 registered users at the close of 2024. This year, the overseas-branch initiated discussions with vendors during the year in review to develop an upgraded version of urpayJO, with new features and services to enhance the user experience.

The Merchant Acquiring Service launched in 2023 with yet another Neoleap product – neoPOS – provides seamless in-store and online payment acceptance solutions to local merchants. In 2024, ARBJ continued to expand its POS network with 492 merchants and over 600 POS terminals.

Leveraging greater autonomy

With the launch of the group-wide strategy ‘harmonize the group’ at the onset of the reporting period, the business departments of all international branches – including ARBJ – were officially announced as the ultimate custodians as per the new management structure, allowing greater flexibility in credit decision making. Following the launch of this new strategy, ARBJ identified and addressed an emerging local market gap, expanding foreign exchange products to new client segments, and established a foothold in the market for the best forex rate. This strategic and timely product launch was a success, generating more than 45% growth in FX revenue for ARBJ this year.

Beyond this, alrajhi group backed ARBJ in multiple international deals, boosting the revenue of the overseas branch. ARBJ was also promoted as the clearing agent for Jordanian Dinar among all alrajhi correspondents, enhancing ARBJ’s liquidity profile while increasing fee income.

Attracting and retaining top talent

The international branch saw a number of new leadership hires during the reporting period, key among them the appointments of the Head of Retail Banking, and the Head of Human Resources. Both appointments have resulted in business and operational developments at ARBJ during the year. Under new HR leadership, the Jordan branch reviewed HR policies and procedures, ensured regulatory compliance, enhanced its recruitment process, implemented automation solutions, streamlined HR operations, and fostered a culture of learning and collaboration as well as inclusivity, boosting employee satisfaction and driving higher productivity across ARBJ.

Employee engagement remains a cornerstone of ARBJ, as the overseas branch actively fosters an interactive culture by regularly launching initiatives aimed at boosting morale and enhancing overall employee engagement. ARBJ implemented a new methodology to optimize our organisational structure that not only optimises structural design but also supports career progression and talent acquisition. During the year in review, the international branch redesigned job descriptions to ensure they are fully aligned with the updated organisational structure, reflecting clear roles and responsibilities. Automation was leveraged to streamline key processes, driving operational efficiency and fostering innovation across HR functions. A performance appraisal cycle was also initiated, with managers being proactively guided on best practices for conducting effective and successful appraisal sessions.

ARBJ invests heavily in capacity building and development of its talent, and has provided a comprehensive range of online courses across diverse topics to ensure employees stay updated on the most important aspects of the industry. Special focus was given to front-line staff through a tailored training programme designed to enhance their skills, elevate the customer experience, and promote a positive image of the bank.

Furthermore, ARBJ continued its efforts to build a strong pipeline of future talent by hosting a diverse group of university students and graduates as part of the Graduate Development Programme, providing them with valuable hands-on experience, with several transitioning into full-time roles within ARBJ upon the successful completion of their training.