ANNUAL REPORT 2017 His Majesty King Abdullah II

His Royal Highness Crown Prince of Jordan

6 | Tanmeyah Annual Report 2017 Tanmeyah Annual Report 2017 | 7

TABLE OF CONTENTS

Message from the Chairman ...... 8 About Tanmeyah – Jordan Microfinance Network ...... 9 Tanmeyah`s Vision, Mission ...... 10 Tanmeyah`s Board Members ...... 11 Tanmeyah’s Executive Team ...... 12 Tanmeyah`s Members ...... 13 Members’ Profile ...... 13 Tanmeyah`s Partners ...... 16 Tanmeyah’s, Regional, and International Partnerships ...... 18 Sector Analysis ...... 19 Financial Inclusion in Jordan ...... 19 Tanmeyah’s Role in the Financial Inclusion Strategy ...... 20 Microfinance in Jordan ...... 24 Industry Performance ...... 25 Outreach Indicators (Periodical Comparison) ...... 26 Average Loan Size ...... 27 Governorates Profile ...... 28 Governorates Analysis ...... 28 Detailed Governorate’s performance ...... 31 Microfinance and Employment Opportunities ...... 56 Social Performance of the Microfinance Sector ...... 57 Tanmeyah`s Accomplishments in 2017 ...... 60 Social Media ...... 60 Website ...... 60 Blood Donation Campaign ...... 61 Ramadan Events ...... 62 Microfinance Documentary Videos ...... 63 Capacity Building ...... 64 Data Collection and Analysis ...... 65 Microfinance Clients’ Success Stories ...... 66 8 | Tanmeyah Annual Report 2017

MESSAGE FROM THE CHAIRMAN

Microfinance is one of the most powerful tools that supports and assists in developing a robust and resilient financial sector that is critical to ensuring strong economic growth.

Our Microfinance Institutions aim at serving our local communities with a set of tailored demand driven financial services, which in turn support economic growth and contribute to improving the communities’ living standards and the quality of life (access to better education, nutrition, health care and clothing).

Tanmeyah – Jordan Microfinance Network’s, main objective is to support the development of the microfinance sector in Jordan through promoting best practices in microfinance operations, with a particular focus on social performance, consumer protection and financial literacy.

Tanmeyah – Jordan Microfinance Network is working with its members and stakeholders on realizing the financial inclusion strategy. The strategy promotes economic sustainability and inclusive growth, which can be achieved through strengthening microfinance regulations and providing a range of adequate financial services through flexible delivery channels.

On behalf of the Board of Directors, I would like to thank Tanmeyah’s team, headed by the Executive Director, Mr. Saleem Nammari, for their strong leadership and passion.

I would also like to thank the management and the teams of the Microfinance Institutions for their enthusiasm and dedication, which is tangibly seen in the field. Finally, as a sector, we are confident and self-assured that, together, we will contribute to effectively enhancing the local economy. Through providing the funding needed by micro-entrepreneurs to establish and grow their microbusinesses, Microfinance Institutions are contributing not only to supporting the local economies in the Kingdom’s governorates, but to the entire national economy. Tanmeyah Annual Report 2017 | 9

ABOUT TANMEYAH – JORDAN MICROFINANCE NETWORK

Tanmeyah - Jordan Microfinance Network was established and formally registered as a non-profit institution at the Ministry of Industry and Trade in 2007, and was incepted to become the representative of the microfinance institutions (MFIs) in Jordan, replacing the Microfinance Association of Jordan (MAJ).

The Network’s main objective is to develop a sustainable microfinance industry that will become an integral part of the national financial system in Jordan. Tanmeyah works at supporting the development of the microfinance sector in Jordan, by spreading advocacy and awareness on behalf of its MFIs members, as well as disseminating the up-to-date practices and developments of the microfinance sector. Fundamentally, the Network will focus its efforts to support the implementation of the appropriate regulation environment, which will lead to a healthy benchmarking criteria and set the performance standards that will be reflected positively on the sector as a whole.

Figure 1: Tanmeyah's Services

Representation Lobbying & Advocacy

Sector Capacity Building Reporting & Research

Benchmarking 10 | Tanmeyah Annual Report 2017

TANMEYAH`S VISION AND MISSION

Tanmeyah has worked closely over the past years with stakeholders to achieve its objectives and fulfill its vision and mission statements. Our partners and stakeholders include MFIs members, the Central Bank of Jordan, governmental ministries and related organizations, donors’ community, meso-level players (trainers, media representatives, etc.), current and potential clients and the public at large.

Our Vision To become an active network that effectively supports the microfinance industry in Jordan.

Our Mission Facilitate the creation of an enabling environment for the development of sustainable microfinance industry in Jordan through the participation of all stakeholders. Tanmeyah Annual Report 2017 | 11

TANMEYAH`S BOARD MEMBERS

H.E Mr. Nayef Al-Fayez Mrs. Muna Sukhtian Chairman Vice Chairman

Mr. Makhmud Saidakhmatov Mr. Ali Abdel Jabbar Board Member Board Member

Mr. Naser Darwish Mr. Marwan Shahateet Board Member Board Member 12 | Tanmeyah Annual Report 2017

TANMEYAH’S EXECUTIVE TEAM

Mr. Saleem Nammari Executive Director Tanmeyah Annual Report 2017 | 13

TANMEYAH`S MEMBERS

MEMBERS’ PROFILE

AHLI MICRO FINANCE CMPANY Ahli Microfinance Company (AMC), one of Jordan’s Ahli Bank subsidiaries, was established in July 1999, and is resultant from the vision of Ahli Bank’s management and their firm belief in the importance of supporting national economic activities in the Hashemite Kingdom of Jordan, and promoting all aspects of the development process.

AMC is the first microfinance company in the private sector in Jordan, founded in line with Jordan Ahli Bank’s efforts in encouraging economic development in Jordan for greater financial inclusion, especially amongst small and micro businesses. AMC has played a significant role in boosting the Jordanian market, on both financial and social levels, where access to credit for smaller businesses is challenging due to lack of collateral and guarantees required by banks and financial institutions for loans.

FINCA JORDAN FINCA is a catalyst for economic growth and financial inclusion for the poor. Individuals living in some of the world’s most challenging economies have long been unbanked. They live without access to critical financial tools that enable progress toward a better life. They not only need access to financial services, but they have the right to those services along with affordable products that save them time and money, make them healthier, more resilient and empowered.

As the founder and owner of a network of 20 microfinance institutions across Africa, Eurasia, Latin America, the Middle East and South Asia, FINCA serves the “unbanked” by providing access to basic financial services and enabling full participation in the economy for the poor. FINCA has now gone beyond traditional microfinance by leveraging the latest technologies in mobile banking to better reach low-income entrepreneurs with micro and small business loans, credit lines, savings and more. Combined with its unique Village Bank “group loans” and its 10,000+ local staff across diverse and remote communities, FINCA is expanding through new social enterprises that provide access to critical products like solar lanterns, water filtration systems and cook stoves. 14 | Tanmeyah Annual Report 2017

ETHMAR FOR ISLAMIC FINANCE Ethmar for Islamic Finance is a private share holding company established by King Al-Hussein Foundation (KHF) in 2015 to serve those who are financially excluded with Shari’a–compliant, innovative and flexible financial solutions. It helps individuals and small businesses owners to improve their living standards and empower them economically and socially to fight poverty and unemployment.

Ethmar for Islamic Finance is Jordan›s first Shari’a-compliant finance company that adheres to innovation as an approach to design and develop its products to meet the needs of the underserved clients. The idea of Islamic Microfinance is based on the principle of sharing capital, work, effort and risk in any business or investment project in accordance with the provisions of Islamic Shari’a Laws.

National Microfinance Bank “Al Watani” «Alwatani» (National Microfinance Bank) is a Jordanian private shareholding not-profit company that finances income- generating projects for underserved segments of society, spreading a culture of micro credit and entrepreneurship and carries out mission-driven activities. The concept of Alwatani stems from His Highness, Prince Talal bin Abdul-Aziz’s initiative to establish banks for micro and small entrepreneurs throughout the Arab World.

In March 27, 2006 under the patronage of Her Majesty Queen Rania, and His Highness’, Prince Talal bin Abdul-Aziz, Alwatani disbursed its first loans in parallel with the opening of three branches. Now Alwatani has twenty-five branches across the Kingdom.

Jordan Micro Credit Company “Tamweelcom” The Jordan Micro Credit Company (Tamweelcom) was established in 1999 as a non-profit organization to pioneer the field of micro-enterprise support and development. Tamweelcom is owned by the Noor Al-Hussein Foundation, which operates independently under the umbrella of the King Hussein Foundation.

To this day, with its capital reserves exceeding JD 3 million, Tamweelcom continues to leave its mark on any challenge it faces. A growing capital coupled with enormous dedication and laser-like visions have propelled Tamweelcom towards unprecedented successes in the microfinance industry. Tamweelcom has proudly positioned itself as one of the leading microfinance companies on local, regional and international levels.

Tamweelcom provides financial and non-financial services to the low-income and productive-poor to improve their social and living standards by adopting and implementing international microfinance best practices. Tamweelcom offers business development services, technical support trainings, product packaging, marketing, accounting and financial literacy trainings.

It is worth mentioning that Tamweelcom helps clients sell their finished handmade products through Souk Ayyadi outlets, an opportunity to grant our clients the chance to market their products in fairs and exhibitions.

VITAS JORDAN Vitas Jordan originated as a continuation of the 1998 Cooperative Agreement signed between Global Communities (formerly CHF International) and USAID to establish the Southern Jordan Access to Credit Project (SJACP). The purpose of the project was to provide microfinance lending services to the residents of the southern Governorates of Jordan over a period of five years, as well as building an interactive capacity with the formal financial institutions through risk-sharing partnerships with commercial banks. In response to the local community needs, the vision of transforming the project into a sustainable local corporate entity was finally realized, culminating with the registration of MEMCC (Middle East Micro Credit Company) as a Limited Liability Non-Profit Company in January 2003.

While MEMCC has achieved much in its 10 years, the MFI felt that it is no longer the right structure to keep up with the growing and changing needs of its clients. To position itself to make a more lasting impact as it grows, MEMCC has joined the Vitas Group, a wholly-owned subsidiary company of Global Communities. With this move, MEMCC became “Vitas Jordan” in name and in values, but still remains true to its founding purpose: to make a difference in its communities by bringing financial opportunities to those who are not well-served by traditional banks or lenders. Vitas Jordan has the privilege of serving over 21,000 clients across Jordan. As it moves forward, the MFI renews its commitment to fulfill these clients’ needs. Vitas constantly strives to live up to their expectations on all levels –in keeping up with their life changes, in making their lives easier, and in and providing comfortable and easy financial solutions that enable them to become self-sufficient and great contributors to the growth of their communities. Tanmeyah Annual Report 2017 | 15

Microfund for Women Microfund for Women (MFW) is a private non-profit company registered under the Ministry of Industry and Trade that is affiliates with Tanmeyah - Jordan Microfinance Network. MFW began its operations in 1996 and is considered one of the leading companies in the provision of financial services to low-income, small business owners in Jordan as a means of empowering them, especially women, economically and socially, so they become active members of society.

MFW also provides non-financial services, which include the ‘Himaya Protection Program’, a life insurance product designed to assist low-income households to cope with uncertainties. In addition, MFW offers (Afiyatuna) a first-of-its- kind in the region micro insurance product that aims to lower hospital expenses resulting from health emergencies; in addition to marketing platforms, training, educational workshops, medical days and many others.

UNRWA Microfinance Department The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) was established by the United Nations General Assembly resolution 302 (IV) of the 8 December 1949 as a separate entity within the United Nations System to carry out direct relief and works programs for Palestine refugees. The Agency began operations on 1 May 1950. It operates in Jordan under special agreement with the Government of Jordan. UNRWA Microfinance was established in Gaza in 1991 and introduced into the West Bank in 1996. It was extended into Jordan and Syria in 2003. Its headquartered is in Jerusalem and is uniquely the only multinational MFI in the Middle East.

The microfinance program currently operates as a special financially and institutionally autonomous department within UNRWA, operating on a sustainable and operationally self-sufficient basis, following microfinance best practice disclosure, audit and social performance guidelines. Plans are currently underway to move the operation from UNRWA and to transform UNRWA Microfinance into an independent regional microfinance operation.

UNRWA Microfinance finances loans to both Palestine refugees and Jordanians citizens, providing loansto microenterprises, women’s household income-generating activities, home improvement, and household asset building, as well as education and healthcare. It is one of the pioneers of social performance management in the MENA region, winning the gold category for MIX indicator reporting in 2009 and 2010 and the Platinum prize in 2011. Its microfinance outreach focuses on the poor and low-income clients, informal enterprises, women and youth. 16 | Tanmeyah Annual Report 2017

TANMEYAH`S PARTNERS

European Union In 2016, Tanmeyah – Jordan Microfinance Network successfully obtained a grant from the European Union that aims at building and expanding the operational capacity of Tanmeyah.

Thanks to the European Union’s support, Tanmeyah- Jordan Microfinance Network was able to improve the level of services provided to the microfinance sector in Jordan and to enhance its visibility to reach, not only the direct stakeholders (as per the Jordan National Microfinance Policy Framework), but also to indirectly support the end beneficiaries ofthe microfinance institutions.

Now Tanmeyah is on the right track and closer to achieving its goals by becoming an member-driven network that effectively supports the MF sector in Jordan, by: - Bringing together different stakeholders and offering a suitable environmentfor discussion, learning, and advocacy that will lead to the development of the sector and reaching the ultimate goal of a sustainable microfinance industry in Jordan. - Promoting comprehensive financial products for microenterprises and underserved productive households, by contributing to strengthening and empowering the Jordanian MFIs through value-added services.

Leveraging the support of the EU, Tanmeyah – Jordan Microfinance Network, was able to increase public awareness about the sector; and how it has helped in creating job opportunities for the unemployed and fighting poverty. Tanmeyah was also able to improve the public image of the microfinance sector in Jordan; by disseminating more information on members’ objectives and activities and the range of financial and non-financial products they offer.

As of October 2017, Tanmeyah – Jordan Microfinance Network, had successfully secured a “Technical Support” grant the EU, that aims at supporting Tanmeyah`s implementation of its strategic vision and of the NMPF, which ultimately lead to Tanmeyah becoming the representative of the MF sector in Jordan and the official promotor of best practices as well. The Technical Support Program will enable Tanmeyah to become the leading source of market research and information on the microfinance in Jordan and in the region, and the official training facilitator for Mmicrofinance trainings and networking events. Tanmeyah Annual Report 2017 | 17

Central Bank of Jordan Laws and Regulations are considered key elements for an enabling and sustainable microfinance environment and realization of the financial inclusion strategy. Tanmeyah aims at covering a broad range of topics that concerns the microfinance institutions and consumers relevant topics.

On December 14, 2014, the Cabinet approved the microfinance Bylaw (5/2015) which became effective on June 1, 2015 and mandates the Central Bank of Jordan to license, regulate and supervise microfinance institutions; after which the Central Bank of Jordan issued the instructions for licensing microfinance institutions in May 2016. The instructions permit the institutions to be registered as for-profit (LLCs and private shareholding) or non-profit companies. The CBJ was keen to consult with the microfinance institutions throughout the process of developing the regulatory framework in order to ensure comprehensive and consensual regulations that can enhance the growth and the transition of the microfinance sector towards a more regulated and standardized system.

The Licensing and Branching instructions for the microfinance companies were issued on 10/4/2016 and published in the Official Gazette on 2/5/2016. In 2017 the Central Bank of Jordan, has launched the last of the instructions, and by the end of 2018 the rest of the instructions (consumer protection, governance and internal control systems) are expected to be completed.

It is worth mentioning that Tanmeyah – Jordan Microfinance Network, is a member in the Steering Committee that the Central Bank of Jordan has formed to help regulate the microfinance sector, in addition to four technical groups (Microfinance, SMEs, Consumer Protection, Financial Literacy). Tanmeyah Jordan Microfinance Network along with its MFIs members are members in the Digital Payment Services committee.

Ministry of Planning and International Cooperation (MOPIC) The Jordanian National Policy Framework for Microfinance directly supports the Government of Jordan’s Executive Development Program of 2011-2013 by aligning strategic priorities with the continued national policy goals of accelerated economic growth, improved standards of living and poverty reduction. It has been developed under the direction of His Excellency Dr. Jafar Hassan, the Minister of Planning and International Cooperation (MoPIC), through a consultative and participatory process. The Framework was launched in early 2011 as a review and update of the National Strategy for Microfinance in Jordan, based on the developments in the sector since its ratification by the Cabinet in 2005.

MOPIC`s role is to ensure that the microfinance framework is being implemented properly by microfinance institutions, and coordinate regular follow up meetings with all stakeholders. 18 | Tanmeyah Annual Report 2017

TANMEYAH’S, REGIONAL, AND INTERNATIONAL PARTNERSHIPS

Regional Partners

SANABEL- The Microfinance Network of Arab Countries Sanabel was established in 2002 when 17 representatives from 7 Arab countries gathered in Tunisia to launch the first and only network, at the time, designed to serve microfinance institutions in the Arab world. At this meeting, the group adopted by-laws and membership criteria, articulated a vision, mission and objectives and elected an executive committee. At its General Assembly meeting in December 2003, Sanabel members voted to formalize the organization by registering Sanabel as a not-for-profit organization and to establish a regional office. In 2004, the organization was incorporated and registered as a nonprofit organization in both Atlanta, Georgia, USA and in Cairo, Egypt where the headquarters is located.

Currently, Sanabel has 65 MFI members from 13 Arab countries; namely Bahrain, Egypt, Iraq, Jordan, Lebanon, Morocco, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, and Yemen. According to Sanabel’s FY 2017 figures, 40% of Sanabel’s members who reported their data served around 2.7 million clients by end of 2017 with a Gross Loan Portfolio (GLP) of more than USD 1.6 billion.

International Partners

SEEP Network Founded in 1985, SEEP is a pioneer in the microcredit movement and helped build the financial inclusion efforts of today. In the last three decades, the network’s members have continued to serve as a testing ground for innovative strategies that promote inclusion, develop resilient markets, and enhance the livelihood potential of the world’s poor.

SEEP is a collaborative learning network that supports strategies that create new and better opportunities for vulnerable populations, especially women, to participate in markets and improve their quality of life. The network believes the challenges of global poverty and inequality must be addressed through transformative solutions. By catalyzing lasting change in how markets function, SEEP members facilitate opportunities for millions of individuals, households and enterprises. Tanmeyah Annual Report 2017 | 19

Sector Analysis

Over the past decade, Jordan has pursued structural reforms in different sectors including education health, and the economic sector with increased privatization and liberalization of market policies. At the same time, the Government of Jordan has introduced social protection measures and reformed subsidies and taxes, to catalyze the conditions for public-private partnerships. More work is needed; however, in order to further enhance the investment climate and ease doing business in Jordan. 10,114,760 1.5% Popultion CDI Volatile regional circumstances, in particular the Syrian and Iraqi crises continue to constitute shocks that have had ripple effects impacting Jordan. the Syrian crisis has resulted in an unprecedented refugee influx which has disrupted trade routes and educed investments inflows and the tourism industry. The large number of Syrian asylum seekers and refugees that have been hosted in Jordan are having a notable impact on the country’s economy and social fabric. Other major challenges that Jordan continues to face include high unemployment, 18.3% 1.5% a dependency on grants and remittances from Gulf economies, and Unemployment rate f CPI pressure on scarce natural resources. or Jordanians

Jordan’s economy remains sluggish as growth slowed down in 2016 for the second year in a row — to an estimated 2 percent from 2.4 percent in 2015 — due to the repercussions of the geopolitical situation which has taken a toll on the. Economic growth is expected to marginally improve to an estimated 2.6 percent average over 2017-2019 anticipating improvements in tourism, exports, and the impact of investment climate reforms. Inflationary pressures is starting to rise once again; however, after two years of deflation. Fiscal consolidation and monetary policy tightening are expected to continue.

Financial Inclusion in Jordan Financial inclusion is the state where individuals and businesses have convenient access to affordable and suitable financial products and services (including payments, savings, credit, transactions and insurance) – that meets their needs, and helps them to improve their lives, in a responsible and sustainable manner. The Central Bank of Jordan (CBJ) has launched the 2018-2020 National Financial Inclusion Strategy for the Hashemite Kingdom of Jordan on December 4, 2017.

Recognizing that financial inclusion as a key contributor to economic development, employment generation, and reduced socio-economic inequalities, and aligned with United Nations’ Sustainable Development Goals, Jordan formed a Financial Inclusion Steering Committee led by the Central Bank of Jordan in 2015. The CBJ embarked on a national policy processfor enhancing financial inclusion for all Jordanians, with special focus on youth, women, refugees, and low- income populations. In 2016, the CBJ also committed under the Maya Declaration to the national goals of expanding access to finance for adults, while reducing the gender gap.

The Policy Forum through which the Financial Inclusion Strategy for Jordan was launched was titled, “Moving Forward towards Inclusive Growth”, is considered a milestone event for the Jordanian Kingdom. The Financial Inclusion Policy Forum, was led by the CBJ, and included participation from CBJ, GIZ, AMF, AFI and Tanmeyah – Jordan Microfinance Network, as key partners supporting the CBJ in its efforts of expanding economic and social inclusion to the unbanked and the financially under-served segments of the Jordanian population. Since then, the CBJ has taken lead , with the support of international experts, in identifying relevant cross sections with financial inclusion with policymakers and regulators working at the forefront of financial inclusion in Jordan, including: Digital Financial Services; Microfinance; SME Finance; Consumer Protection; Financial Capabilities; and Data. http://www.cbj.gov.jo/EchoBusv3.0/SystemAssets/PDFs/AR/JANPDF/Executive%20Summary%20EN.pdf 20 | Tanmeyah Annual Report 2017

The need for a Financial Inclusion Strategy in Jordan was identified based on a number of factors; the most important of which is the low ratio of financial inclusion for adults is Jordan which was 24.60% in 2017, compared to other countries in the same income level bracket. Despite the fact that Jordan has one of the highest income levels in the MENA region, the majority of adults are excluded from the formal financial system. The Financial Inclusion Strategy recognizes that appropriate financial services can help improve and enhance an individual’s and a family’s wellbeing, as different types of financial products/services can assist the underserved people in various manners. In particular, the strategy focuses on: • Credit: Microcredit has enabled millions of business owners around the world to start or expand their small enterprises. In many countries, it has been demonstrated that access to credit can lead to larger and more profitable businesses. • Insurance: Vulnerability to risk and the lack of instruments to cope with external shocks make it difficult for the underserved to escape poverty. Micro insurance can be an important instrument for mitigating risk to this regards. • Payments and mobile money: Digital transactions can be an efficient way of making payments while reducing households’ transaction costs. Instead of having to travel for long distances, microenterpreneurs can do business via their smart phones.

Tanmeyah’s Role in the Financial Inclusion Strategy On November 19, 2015, following the regional high-level Policy Forum on “Financial Inclusion and Employment” at the Dead Sea in Jordan, the Prime Minister of the Hashemite Kingdom of Jordan established the national Financial Inclusion Steering Committee (FISC) and called upon the CBJ to lead the process for developing and implementing the NFIS for Jordan. The National FISC included key public, private and civil society stakeholders. On September 25, 2016, the CBJ named six working groups that would carry on continued multi-stakeholder consultations with all committee members, i.e. public, private and civil society stakeholders, within the priority policy areas of Digital Financial Services, Microfinance, SME Finance, Financial Capabilities, Financial Consumer Protection, and Data and Research.

Tanmeyah`s key role has been identified to be in communicating and disseminating best practices within the “Financial Inclusion” main pillars, as foloows:

• Digital Financial Services (DFS), which includes online payments and money transfer systems, that are considered an essential component of the financial services sector’s infrastructure. Modern, secure, and efficient national payment systems; including JoMoPay, Jo-Net and eFAWATEERcom, and Payment Service Providers “PSP,” play an instrumental role in advancing the financial services market in Jordan, and can significantly contribute to reducing cost and risk for clients. DFS bear the potential to speed up financial inclusion of people and businesses since it is a convenient and effective gateway to the formal financial system, and the driver for the digitalization of Business-to-Person and Government-to-Person transactions.

Within the microfinance sector, DFS can also contribute considerably to facilitating operationsand improving customer service through safe, efficient, and convenient methods for the disbursement and repayment of loans, and 24/7 access to account balance.

DFS will also assist microfinance institutions to increase their outreach, bring new services, and enhance their operational capacity, as well as create future opportunities through providing access to quality and affordable financial services.

Since the establishment and the launching of the digital payment platforms, the microfinance sector has been keen on leveraging these digital modalities. Today, the sector is able to effect around 35% of its repayment transactions through these digital means. It is expected that this percentage will steadily with 5-10%. Tanmeyah Annual Report 2017 | 21

• Consumer Protection and financial literacy are key enablers for responsible finance, as they empower consumers, and create sustainable demand for formal financial services. Consumer protection and financial literacy, both aligned with the G20 Principles for Innovative Financial Inclusion, also assist the priority microfinance client segments make informed decisions.

The CBJ, has been working closely with Jordanian microfinance institutions to identify key issues related to consumer protection, and has launched in 2017 the latest version of the internal rules and regulation for handling customer complaints. Microfinance institutions in Jordan offer several channels through which their clients can communicate their complaints , they are namely:

• Call Centers • Social Media channels • Free lines • Complaints boxes

The CBJ has established a “Surveillance Department” that is currently receiving complaints from financial sector clients. The CBJ follows up with the concerned financial entity if necessary. The CBJ also conducts random inspection visits to those entities. 22 | Tanmeyah Annual Report 2017

Financial Inclusion in Jordan

Target groups All

Bottom 40% Women Refugees Youth

Products Loan - Savings - Money Transfer - Insurance - Payments

Industries/Instruments

Micro- Digital SME Finance Finance Finance

Enablers Financial Technology (FinTech) Financial Consumer Protection & Financial Capabilities

Data and Research Laws, Regulations, Instructions Tanmeyah Annual Report 2017 | 23

• Financial Literacy helps individuals choose the right financial product as per their need, avoid over indebtedness, and become ultimately self-sufficient to achieve financial stability. Financial literacy increases the microfinance clients’ knowledge and sophistication levels.

Target groups Jordan`s microfinance institutions have played major role in encouraging financial literacy by providing sessions all All over the Jordanian Kingdom, to spread financial knowledge that is beneficial for clients when approaching a financial institution, and to receiving all the needed information about a particular financial service, and to better manage their cash flows and make proper budgeting decisions. Bottom 40% Women Refugees Youth

Products Loan - Savings - Money Transfer - Insurance - Payments

Industries/Instruments

Micro- Digital SME Finance Finance Finance

Enablers Financial Technology (FinTech) Financial Consumer Protection & Financial Capabilities

Data and Research Laws, Regulations, Instructions 24 | Tanmeyah Annual Report 2017

Microfinance in Jordan Microfinance has proved to be a powerful and effective tool in empowering Jordan’s underserved entrepreneurs, fighting poverty, and lowering unemployment rates..The microfinance sector in Jordan was established in 1994 with the launch of a pilot lending scheme in Amman. Today, the sector is comprised of eight professional institutions that operate through world-class lending practices and are already operationally and financially sustainable. Tanmeyah’s members have laid the foundations for sustainable and solid organizations through strong operational performance and high quality demand-driven financial services.

At the beginning, the microfinance sector in Jordan had focused on providing group lending and business loans only, however, with time the financial services’ offering expanded to individual consumer loans, including seasonal and education loans, and life insurance. Jordanian MFIs also offer a wide range of business development services to their clients, particularly the underserved productive households and low-income individuals. The number of Active Borrowers in the Jordanian microfinance sector increased by 7% in 2017 compared to 2016 to reach 417,302, while The Gross Loan Portfolio for the sector increased by 10%, for the same period, to reach JD 227 million.

Figure 3: Growth in Microfinance Sector in Jordan over the Past Five Years

Active borrowers 243,793 2012 Active loans 272,411 Growth 0%

Active borrowers 282,631 Active loans 302,906 2013 Growth 20%

Active borrowers 325,744 2014 Active loans 338,906 Growth 4%

Active borrowers 357,833 Active loans 370,247 2015 Growth 20%

Active borrowers 390,193 2016 Active loans 406,559 Growth 10%

Active borrowers 417,302 Active loans 413,198 2017 Growth 2% 250,000,000 25%

200,000,000 20%

150,000,000 15%

100,000,000 10%

50,000,000 5%

0 0% Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Gross Loan Portfolio Growth Tanmeyah Annual Report 2017 | 25

Industry Performance

Outreach Indicators in FY 2017 Compared to FY 2016:

• Number of Active Borrowers: Number of Active Borrowers increased by 7% reaching (417,302) Active Borrowers. • Number of Active Loans: Number of Active Loans increased by 2% reaching (413,198) Active Loans. • Gross loan Portfolio: Total Gross Loan Portfolio increased by 10% reaching JD (227) million. • Average Outstanding Loan Balance: Average Outstanding Loan Balance increased by 8% reaching JD (549). • Number of Branches: Number of Branches increased by 6% reaching 186 branches.

Comparison Table (FY 2016 - FY 2017):

Performance 2016 2017 Growth Active Borrowers 390,193 417,302 7% Active Loans 406,559 413,198 2% Total Gross Loan Portfolio (GLP) JD Million 206 227 10% Average Outstanding Loan Size JD 508 549 8% Number of Branches 175 186 6% PAR 30< 1.4% 1.3% -0.1% Written Off % 0.80% 0.86% 0.06%

Gross loan Portfolio: On average, the GLP as a figure grew by 15% over the past five years (FY 2012 - FY 2017. Madaba, recorded the largest increase the GLP in FY 2017, as it grew by 42% compared to FY 2016 reaching JD (15.2) million, followed by Ajloun with an increase of 36% in GLP reaching JD (5.3) million, and Tafileh which have witnessed an increase of 32% in GLP reaching JD (4.7) million.

Year GLP (JOD) Growth Rate (%) 2012 101,849,121 0% 2013 122,944,799 21% 2014 149,227,710 21% 2015 180,191,279 21% 2016 206,332,118 15% 2017 227,038,235 10%

250,000,000 25%

200,000,000 20%

150,000,000 15%

100,000,000 10%

50,000,000 5%

0 0% Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Gross Loan Portfolio Growth 26 | Tanmeyah Annual Report 2017

Outreach Indicators: The outreach indicators, as demonstrated by the number of Active Borrowers and Active loans, recorded an average growth rate of 8% over the past five years as shown in the following table:

The major driving force that has pushed the number of Active Borrowers and Loans was mainly due to expansion of outreach and the opening of 11 new branches during the period; 4 in Irbid, 2 in Balqa, 1 in Zarqa, 1 in Mafraq, 1 in Karak and 2 in Ma'an, which has increased the total number of the branches to 186.

Period Active Borrowers (#) Growth 2012 243,793 0% 2013 282,631 16% 2014 325,744 15% 2015 357,833 10% 2016 390,193 9% 2017 417,302 7% 600 12%

500 10% 450,000 18% 400 8% 400,000 16%

350,000 14% 300 6% 300,000 12% 200 4% 250,000 10%

200,000 8% 100 2% 150,000 6% 0 0% 100,000 4% Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 50,000 2% 0 0% Average Loan Size Growth % 2012 2013 2014 2015 2016 2017

Active Borrowers (#) Growth Tanmeyah Annual Report 2017 | 27

Average Loan Size On average, the average loan size recorded an increase of 8% over the five year period from FY 2012 – FY 2017, and this increase was mainly due to inflation which has impacted the value of the JD, in addition to the sector’s gradual shift to scaling up the products to serve the small size businesses.

Year Average Loan Size (JD) Growth Rate (%) 2012 374 0 2013 406 9% 2014 440 8% 2015 487 11% 2016 508 4% 2017 549 8%

600 12%

500 10% 450,000 18% 400 8% 400,000 16%

350,000 14% 300 6% 300,000 12% 200 4% 250,000 10%

200,000 8% 100 2% 150,000 6% 0 0% 100,000 4% Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 50,000 2% 0 0% Average Loan Size Growth % 2012 2013 2014 2015 2016 2017

Active Borrowers (#) Growth Total Disbursed Loans (Borrower): Total Disbursed Loans has witnessed a negative increase in the fourthquarter of 2017 by 4% reaching 80,960 thousand compared to the same quarter of 2016.

Number and Amount of Disbursed Loans: The total number of Disbursed Loans has decreased by 13% in the fourthquarter of 2016 reaching 76,029 compared to the same period of 2016, coupled with anincrease of 3% on the amount of Disbursed Loans reaching JD (70.5) million.

Loans Disbursement Profile (Q4 2016 – Q4 2017):

Performance Q42016 Q4 2017 Growth Disbursed Loans (Borrowers) 84,153 80,960 -4% Number of Disbursed Loans 87,511 76,029 -13% Amount of Disbursed Loans JD Million 68.8 70.6 3% Average Loan Disbursed 786 928 18% 28 | Tanmeyah Annual Report 2017

GOVERNORATES PROFILE

Governorates Analysis Generally, the Jordanian microfinance institutions are giving more priority towards serving the governorates located in rural areas and the poverty pockets inside and outside Amman. This focused outreach aims at supporting economic and social development in the Kingdom, throughout providing financial services to the targeted segments, including; productive and low-income people and micro and small enterprises (MSEs).

Accoridng to Tanmeyah’s latest updated statistics from the Jordanian microfinance sector, in 2017 69% of the total industry’s operations and infrastructure are set outside of Amman in terms of borrowers, branches, and 64% of the portfolio investments.

In terms of governorates’ performance, Ma'an was in lead with 36% growth in the number of Active Borrowers, and a 13% increase in the GLP and a PAR < 30 of around 0.3% only, followed by Mafraq with 13% growth in Active Borrowers, 15% increase in the GLP and PAR < 30 of 3%.

36%

13% 11% 10% 9% 7% 7% 6% 6% 6% 127,618 1% 1% Active Borrowers Amman 31% Amman Balqa Zarqa Madaba Irbid Mafraq Ajlun Jarash Karak Tafilieh Ma'an Aqaba

Active Borrowers Provision 69% In terms of outreach (branches), Ma'an recorded the highest growth in the number of branches followed by Balqa 289,684 and Irbid.

100%

TOTAL: 417,302

17% 15% 14% 8% 4% 0% 0% 0% 0% 0% 0% 127,891

Amman Balqa Zarqa Madaba Irbid Mafraq Ajlun Jarash Karak Tafilieh Ma'an Aqaba Active Borrowers Amman 31%

Active Borrowers Provision 69% 285,307

TOTAL: 413,198 Tanmeyah Annual Report 2017 | 29

Amman Vs. Other Governorates: The majority of the growth achieved by the Jordanian microfinance industry in FY 2017 mainly took place outside the borders of Amman according as demonstrated in the table below:

Performance Amman Outside Amman Total Active Borrowers 127,618 289,684 417,302 % 31% 69% 100% Active Loans 127,891 285,307 413,198 % 31% 69% 100% Total Gross Loan Portfolio (GLP) JD 82,814,378 144,223,857 227,038,235 % 36% 64% 100% Number of Branches 60 126 186 % 32% 68% 100%

Active Borrowers: 36% Only 31% or (127,618) of the Jordanian microfinance industry’s Active Borrowers are located within Amman, which means that the majority of borrowers are located outside of the capital city (289,684).

13% 11% 10% 9% 7% 7% 6% 6% 6% 127,618 1% 1% Active Borrowers Amman 31% Amman Balqa Zarqa Madaba Irbid Mafraq Ajlun Jarash Karak Tafilieh Ma'an Aqaba

Active Borrowers Provision 69% 289,684

100%

TOTAL: 417,302 Active Loans Only 31% or (127,891) of the Jordanian microfinance industry’s Active Loans are located within Amman, which means that the majority of loans are located outside of the capital city (285,307).

17% 15% 14% 8% 4% 0% 0% 0% 0% 0% 0% 127,891

Amman Balqa Zarqa Madaba Irbid Mafraq Ajlun Jarash Karak Tafilieh Ma'an Aqaba Active Borrowers Amman 31%

Active Borrowers Provision 69% 285,307

TOTAL: 413,198 30 | Tanmeyah Annual Report 2017

Total Gross Loan Portfolio: Around 36% or JD (82.8) million of the microfinance industry’s portfolio was disbursed within Amman in FY 2017, while the remainin 64% of the portfolio with the amount of JD (144.2) million was disbursed in Amman.

82,814,378

Portfolio Amman 36%

Portfolio Provisi on 64% 144,223,857

TOTAL: 227,038,235

Number of Branches: Of the total 186 branches in Jordan, 126 MFI branches, or 68% of the microfinance industry branches, are located outside the governorate of Amman.

60

Branches Amman 32%

Branches Provision 68% 126

TOTAL: 186 Tanmeyah Annual Report 2017 | 31

DETAILED GOVERNORATE’S PERFORMANCE

Irbid

Ajlun Mafraq Jarash Balqaa

Zarqa Madaba Amman

Karak

Tafileh 60

Branches Amman 32% Ma'an

Branches Provision 68% 126

Aqaba

TOTAL: 186 32 | Tanmeyah Annual Report 2017

Amman Detailed performance Amman: Active Loans Amman: Gross Loan Portfolio Amman is located in the center of the governorates’ and is the capital city of Jordan. Amman’s area size is estimated 130,000 12% 90,000,000 25% at (7579.2) km2 which is 8.5% of the Kingdom›s area. The population in Amman is estimated at 4,226,700 people is 80,000,000 53.7% male and 46.3% female, and which is mean 42% compares with the kingdom population number. The number of 125,000 10% 20% households is 912,666 with an average household size of 6.4 persons compared to 4.8 in Jordan. 70,000,000 120,000 8% 60,000,000 15% The number of economic establishments in Amman is 70,053 distributed in the industrial, services, transport, trade and 115,000 50,000,000 6% construction sectors. 40,000,000 110,000 10% 4% 30,000,000 105,000 20,000,000 5% 100,000 2% 10,000,000 Active Borrowers 95,000 0% 0 0% Q4 2016: 120,841 Number of Branches Q4 2017: 127,618 Active Loans Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2016: 60 Growth: 6% Q4 2016: 127,869 Q4 2017: 60 Q4 2017: 127,891 Growth: 0% Growth: 0% Amman: Average Outstanding Loan Size Amman: Average Disbursed Loan Size

700 18% 1,400 30% 16% 600 1,200 25% 14% 500 1,000 Written Off % Women Borrowers 12% 20% Q4 2016: 2.4% Q4 2016: 75% 400 10% 800 Q4 2017: 2.7% Q4 2017: 74% 15% Growth: 0.3% Growth: -1% 300 8% 600 6% 10% 200 400 4% 100 200 5% 2% 0 0% 0 0% Average Qustanding PAR >30 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Loan Size JD Q4 2016: 1.9% Total Gross Loan Q4 2016: 588 Q4 2017: 2.3% Portfolio (GLP) JD Q4 2017: 648 Growth: 0.4% Q4 2016: 75,193,702 Growth: 10% Q4 2017: 82,814,378 Growth: 10% Tanmeyah Annual Report 2017 | 33

Amman: Active Loans Amman: Gross Loan Portfolio

130,000 12% 90,000,000 25% 80,000,000 125,000 10% 70,000,000 20% 120,000 8% 60,000,000 15% 115,000 50,000,000 6% 40,000,000 110,000 10% 4% 30,000,000 105,000 20,000,000 5% 100,000 2% 10,000,000 Active Borrowers 95,000 0% 0 0% Q4 2016: 120,841 Number of Branches Q4 2017: 127,618 Active Loans Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2016: 60 Growth: 6% Q4 2016: 127,869 Q4 2017: 60 Q4 2017: 127,891 Growth: 0% Growth: 0% Amman: Average Outstanding Loan Size Amman: Average Disbursed Loan Size

700 18% 1,400 30% 16% 600 1,200 25% 14% 500 1,000 Written Off % Women Borrowers 12% 20% Q4 2016: 2.4% Q4 2016: 75% 400 10% 800 Q4 2017: 2.7% Q4 2017: 74% 15% Growth: 0.3% Growth: -1% 300 8% 600 6% 10% 200 400 4% 100 200 5% 2% 0 0% 0 0% Average Qustanding PAR >30 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Loan Size JD Q4 2016: 1.9% Total Gross Loan Q4 2016: 588 Q4 2017: 2.3% Portfolio (GLP) JD Q4 2017: 648 Growth: 0.4% Q4 2016: 75,193,702 Growth: 10% Q4 2017: 82,814,378 Growth: 10% Performance 2016 2017 Growth Active Borrowers 120,841 127,618 6% Active Loans 127,869 127,891 0% Total Gross Loan Portfolio (GLP) JD 75,193,702 82,814,378 10% Average Outstanding Loan Size JD 588 648 10% Women Borrowers 75% 74% -1% PAR >30 1.9% 2.3% 0.4% Written Off % 2.4% 2.7% 0.3% Number of Branches 60 60 0%

Performance 2016 2017 Growth Total Disbursed Loans (Borrowers) 26,258 24,727 -6% Number of Loans Disbursed 27,597 22,865 -17% Amount of Loans Disbursed (JD) 25,885,261 27,377,568 6% Average Disbursed Loan Size (JD) 938 1,197 28% 34 | Tanmeyah Annual Report 2017

Balqa Detailed performance Balqa: Active Loans Balqa: Gross Loan Portfolio Balqa is located in the western region of Jordan. It is bordered to the north by Irbid, Jarash, and Ajloun, to the west by 34,000 2% 18,000,000 20% the Jordan River and the Dead Sea, and from the south by Madaba and the Dead Sea, and from the governorates of the Central and Eastern of Amman and Zarqa. 1% 16,000,000 33,500 14,000,000 15% 0% Balqa is about (25) km and the area is estimated at (1120.4) km2, representing (1.3%) of the Kingdom’s area and is 12,000,000 33,000 10% characterized by diversity of climate and terrain. -1% 10,000,000 -2% 8,000,000 The population in Balqa estimated at 518,600 people is 53.7% male and 46.3% female and which is mean 5.2% 32,500 5% 6,000,000 compares with the kingdom population number. The number of households is 105,603 with an average of 4.9 persons -3% per household compared to 4.8 in Jordan. 32,000 4,000,000 0% -4% 2,000,000 The value of investment projects in the province that have applied to benefit from the investment law encouraging 31,500 -5% 0 -5% investment is JD 87.09 Million for the period from 2013 to 2014. Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Balqa: Average Outstanding Loan Size Balqa: Average Disbursed Loan Size

Active Borrowers 600 18% 900 30% Q4 2016: 31,006 Number of Branches Q4 2017: 33,047 Active Loans 16% 800 25% Q4 2016: 12 Growth: 7% Q4 2016: 32,225 500 Q4 2017: 14 Q4 2017: 32,242 14% 700 20% Growth: 17% Growth: 0% 400 12% 600 15% 10% 500 10% 300 8% 400 5% 200 6% 300 0% 4% 200 -5% 100 100 -10% Written Off % Women Borrowers 2% Q4 2016: 0.3% Q4 2016: 87% 0 0% 0 -15% Q4 2017: 0.3% Q4 2017: 89% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: 0% Growth: 2%

Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.0% Total Gross Loan Q4 2016: 495 Q4 2017: 0.9% Portfolio (GLP) JD Q4 2017: 524 Growth: -0.1% Q4 2016: 15,950,602 Growth: 6% Q4 2017: 16,895,134 Growth: 6% Tanmeyah Annual Report 2017 | 35

Balqa: Active Loans Balqa: Gross Loan Portfolio

34,000 2% 18,000,000 20%

1% 16,000,000 33,500 14,000,000 15% 0% 12,000,000 33,000 10% -1% 10,000,000 8,000,000 32,500 -2% 5% 6,000,000 -3% 32,000 4,000,000 0% -4% 2,000,000 31,500 -5% 0 -5% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Balqa: Average Outstanding Loan Size Balqa: Average Disbursed Loan Size

Active Borrowers 600 18% 900 30% Q4 2016: 31,006 Number of Branches Q4 2017: 33,047 Active Loans 16% 800 25% Q4 2016: 12 Growth: 7% Q4 2016: 32,225 500 Q4 2017: 14 Q4 2017: 32,242 14% 700 20% Growth: 17% Growth: 0% 400 12% 600 15% 10% 500 10% 300 8% 400 5% 200 6% 300 0% 4% 200 -5% 100 100 -10% Written Off % Women Borrowers 2% Q4 2016: 0.3% Q4 2016: 87% 0 0% 0 -15% Q4 2017: 0.3% Q4 2017: 89% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: 0% Growth: 2%

Performance Q4 2016 Q4 2017 Growth Active Borrowers 31,006 33,047 7% Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.0% Active Loans 32,225 32,242 0% Total Gross Loan Q4 2016: 495 Q4 2017: 0.9% Portfolio (GLP) JD Q4 2017: 524 Growth: -0.1% Total Gross Loan Portfolio (GLP) JD 15,950,602 16,895,134 6% Q4 2016: 15,950,602 Growth: 6% Q4 2017: 16,895,134 Average Outstanding Loan Size JD 495 524 6% Growth: 6% Women Borrowers 87% 89% 2% PAR >30 1.0% 0.9% -0.1% Written Off % 0.3% 0.3% 0.0% Number of Branches 12 14 17%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 7,594 7,172 -6% Number of Loans Disbursed 7,753 6,559 -15% Amount of Loans Disbursed (JD) 5,529,470 5,340,633 -3% Average Disbursed Loan Size (JD) 713 814 14% 36 | Tanmeyah Annual Report 2017

Zarqa Detailed performance Zarqa: Active Loans Zarqa: Gross Loan Portfolio 2 Zarqa Governorate is located in the north-east part of Jordan, with an area of (4761.3) km (5.4%) of the total area of 61,000 8% 35,000,000 120% the Kingdom. It is close to Amman, Balqa, Jerash and Al Mafraq, and it has a border crossing point with the Arab Gulf 60,000 6% 100% countries and comes in fifth place after the governorates of Mafraq, Ma›an, the capital, and Aqaba in terms of size. Zarqa 30,000,000 59,000 4% 80% has an average geographical location between the cities of Jordan and an international transport network linking Jordan 25,000,000 with neighboring countries. 58,000 2% 60% 57,000 0% 20,000,000 40% The population of Zarqa Governorate is about (1,439,500) people, which is (14.3%) of the population of the Kingdom and 56,000 -2% 15,000,000 20% it is 52.9% males and 47.1% females. 55,000 -4% 0% 10,000,000 54,000 -6% -20% There are a number of important economic activities in the governorate, most of which are concentrated in the plastic and 5,000,000 rubber industries, leather industries and cosmetics, chemical and cosmetic industries, food and agricultural industries, 53,000 -8% -40% livestock, engineering, electrical and IT industries, packaging, paper, cardboard and office supplies. 52,000 -10% 0 -60% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Zarqa: Average Outstanding Loan Size Zarqa: Average Disbursed Loan Size Q4 2016: 57,635 600 120% 1,000 18% Number of Branches Q4 2017: 58,247 Active Loans Q4 2016: 24 Growth: 1% Q4 2016: 59,403 100% 900 16% Q4 2017: 25 Q4 2017: 57,406 500 800 Growth: 4% Growth: -3% 80% 14% 700 400 60% 12% 600 40% 10% 300 500 20% 8% 400 200 0% 300 6% -20% 200 4% Written Off % Women Borrowers 100 Q4 2016: 0.8% Q4 2016: 81% -40% 100 2% Q4 2017: 1.4% Q4 2017: 79% 0 -60% 0 0% Growth: 0.6% Growth: -2% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 2.1% Total Gross Loan Q4 2016: 510 Q4 2017: 2.1% Portfolio (GLP) JD Q4 2017: 547 Growth: 0% Q4 2016: 30,285,195 Growth: 7% Q4 2017: 31,377,222 Growth: 4% Tanmeyah Annual Report 2017 | 37

Zarqa: Active Loans Zarqa: Gross Loan Portfolio

61,000 8% 35,000,000 120% 60,000 6% 30,000,000 100% 59,000 4% 80% 25,000,000 58,000 2% 60% 57,000 0% 20,000,000 40% 56,000 -2% 15,000,000 20% 55,000 -4% 0% 10,000,000 54,000 -6% -20% 5,000,000 53,000 -8% -40% 52,000 -10% 0 -60% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Zarqa: Average Outstanding Loan Size Zarqa: Average Disbursed Loan Size Q4 2016: 57,635 600 120% 1,000 18% Number of Branches Q4 2017: 58,247 Active Loans Q4 2016: 24 Growth: 1% Q4 2016: 59,403 100% 900 16% Q4 2017: 25 Q4 2017: 57,406 500 800 Growth: 4% Growth: -3% 80% 14% 700 400 60% 12% 600 40% 10% 300 500 20% 8% 400 200 0% 300 6% -20% 200 4% Written Off % Women Borrowers 100 Q4 2016: 0.8% Q4 2016: 81% -40% 100 2% Q4 2017: 1.4% Q4 2017: 79% 0 -60% 0 0% Growth: 0.6% Growth: -2% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Performance Q4 2016 Q4 2017 Growth Average Qustanding PAR >30 Active Borrowers 57,635 58,247 1% Loan Size JD Q4 2016: 2.1% Total Gross Loan Q4 2016: 510 Q4 2017: 2.1% Portfolio (GLP) JD Active Loans 59,403 57,406 -3% Q4 2017: 547 Growth: 0% Q4 2016: 30,285,195 Growth: 7% Total Gross Loan Portfolio (GLP) JD 30,285,195 31,377,222 4% Q4 2017: 31,377,222 Growth: 4% Average Outstanding Loan Size JD 510 547 7% Women Borrowers 81% 79% -2% PAR >30 2.1% 2.1% 0% Written off % 0.8% 1.4% 0.6% Number of Branches 24 25 4%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 11,892 10,729 -10% Number of Loans Disbursed 12,181 9,983 -18% Amount of Loans Disbursed (JD) 9,571,430 8,888,560 -7% Average Disbursed Loan Size (JD) 786 890 13% 38 | Tanmeyah Annual Report 2017

Madaba Detailed performance Madaba Governorate is located in the south of Amman, and about (35) km far from it, with an area of (939.7) Km2. It is situated at an elevation of about 774m above sea level.

The population of the province of Madaba is (199,500), or 2% of the total population of the Kingdom. The population of Madaba governorate is 52.9% males and 47.1% females. Approximately 21.7% of the governorate’s population live in the countryside.

The Governorate is uniquely characterized by the diversity and variability of tourism, health, entertainment, cultural, and historical tourism.

Active Borrowers Q4 2016: 19,914 Number of Branches Q4 2017: 21,154 Active Loans Q4 2016: 9 Growth: 6% Q4 2016: 20,590 Q4 2017: 9 Q4 2017: 21,103 Growth: 0% Growth: 2%

Written Off % Women Borrowers Q4 2016: 1.2% Q4 2016: 85% Q4 2017: 1.3% Q4 2017: 83% Growth: 0.1% Growth: -2%

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.8% Total Gross Loan Q4 2016: 520 Q4 2017: 1.1% Portfolio (GLP) JD Q4 2017: 722 Growth: 0.3% Q4 2016: 10,711,100 Growth: 39% Q4 2017: 15,240,342 Growth: 42% Tanmeyah Annual Report 2017 | 39

Madaba: Active Loans Madaba: Gross Loan Portfolio

25,000 25% 18,000,000 45% 16,000,000 40% 20,000 20% 14,000,000 35% 12,000,000 30% 15,000 15% 10,000,000 25% 8,000,000 20% 10,000 10% 6,000,000 15%

5,000 5% 4,000,000 10% 2,000,000 5% 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Active Borrowers Q4 2016: 19,914 Number of Branches Q4 2017: 21,154 Active Loans Q4 2016: 9 Growth: 6% Q4 2016: 20,590 Q4 2017: 9 Q4 2017: 21,103 Madaba: Average Outstanding Loan Size Madaba: Average Disbursed Loan Size Growth: 0% Growth: 2% 800 45% 900 14% 40% 800 700 12% 600 35% 700 10% 30% 600 500 25% 500 8% 400 Written Off % Women Borrowers 20% 400 6% Q4 2016: 1.2% Q4 2016: 85% 300 15% 300 Q4 2017: 1.3% Q4 2017: 83% 200 4% Growth: 0.1% Growth: -2% 10% 200 100 5% 100 2% 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.8% Total Gross Loan Q4 2016: 520 Q4 2017: 1.1% Portfolio (GLP) JD Q4 2017: 722 Growth: 0.3% Performance Q4 2016 Q4 2017 Growth Q4 2016: 10,711,100 Growth: 39% Q4 2017: 15,240,342 Active Borrowers 19,914 21,154 6% Growth: 42% Active Loans 20,590 21,103 2% Total Gross Loan Portfolio (GLP) JD 10,711,100 15,240,342 42% Average Outstanding Loan Size JD 520 722 39% Women Borrowers 85% 83% -2% PAR >30 0.8% 1.1% 0.3% Written Off % 1.2% 1.3% 0.1% Number of Branches 9 9 0%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 4,329 4,335 0% Number of Loans Disbursed 4,544 4,220 -7% Amount of Loans Disbursed (JD) 3,447,785 3,600,046 4% Average Disbursed Loan Size (JD) 759 853 12% 40 | Tanmeyah Annual Report 2017

Irbid Detailed performance Irbid: Active Loans Irbid: Gross Loan Portfolio Irbid Governorate is located in the northern part of Jordan and is estimated at a size of (1571.8) km2. The governorate 80,000 30% 40,000,000 35% enjoys an important geographical location, which is the important link between Jordan and neighboring countries from 70,000 35,000,000 the north side. There are many waterfalls and valleys where the water is flowing from the mountains. 25% 30% 60,000 30,000,000 25% 20% The population of the governorate is (1,867,000) or 18.6% of the population of Jordan. The percentage of the male 50,000 25,000,000 population is 51.7%, and of females is 48.3% and the rural population represents 7.6% of the total population. The size 20% of the family in Irbid is estimated at (5) individuals per household compared to the general average of (4.8) person 40,000 15% 20,000,000 15% household in Jordan. 30,000 15,000,000 10% 10% 20,000 10,000,000 The industrial sector is an important attraction for investment in the governorate, especially with Al Hassan Industrial 5% 5% City. The total area of the city is (1178) Dunum’s and was established in 1991. The projects in this city provided (21,292) 10,000 5,000,000 job opportunities and attracted about 137 international industrial companies over the world and Exceeding JD (405) 0 0% 0 0% million JD. Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Irbid: Average Outstanding Loan Size Irbid: Average Disbursed Loan Size

Active Borrowers 500 9% 900 14% Q4 2016: 68,630 Number of Branches Active Loans 450 8% 800 Q4 2017: 76,123 12% Q4 2016: 27 Q4 2016: 69,908 Growth: 11% 400 7% 700 Q4 2017: 31 Q4 2017: 74,532 350 10% Growth: 15% Growth: 7% 6% 600 300 5% 500 8% 250 4% 400 200 6% 3% 300 150 4% 100 2% 200 1% 100 2% Written Off % Women Borrowers 50 Q4 2016: 1.5% Q4 2016: 81% 0 0% 0 0% Q4 2017: 1.3% Q4 2017: 80% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: -0.2% Growth: -1%

Average Qustanding PAR >30 Loan Size JD Q4 2016: 2.7% Total Gross Loan Q4 2016: 426 Q4 2017: 2.6% Portfolio (GLP) JD Q4 2017: 461 Growth: -0.1% Q4 2016: 29,782,057 Growth: 8% Q4 2017: 34,322,156 Growth: 15% Tanmeyah Annual Report 2017 | 41

Irbid: Active Loans Irbid: Gross Loan Portfolio

80,000 30% 40,000,000 35% 70,000 35,000,000 25% 30% 60,000 30,000,000 25% 20% 50,000 25,000,000 20% 40,000 15% 20,000,000 15% 30,000 15,000,000 10% 10% 20,000 10,000,000 5% 10,000 5,000,000 5%

0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Irbid: Average Outstanding Loan Size Irbid: Average Disbursed Loan Size

Active Borrowers 500 9% 900 14% Q4 2016: 68,630 Number of Branches Active Loans 450 8% 800 Q4 2017: 76,123 12% Q4 2016: 27 Q4 2016: 69,908 Growth: 11% 400 7% 700 Q4 2017: 31 Q4 2017: 74,532 350 10% Growth: 15% Growth: 7% 6% 600 300 5% 500 8% 250 4% 400 200 6% 3% 300 150 4% 100 2% 200 1% 100 2% Written Off % Women Borrowers 50 Q4 2016: 1.5% Q4 2016: 81% 0 0% 0 0% Q4 2017: 1.3% Q4 2017: 80% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: -0.2% Growth: -1%

Performance Q4 2016 Q4 2017 Growth Active Borrowers 68,630 76,123 11% Average Qustanding PAR >30 Loan Size JD Q4 2016: 2.7% Active Loans 69,908 74,532 7% Total Gross Loan Q4 2016: 426 Q4 2017: 2.6% Portfolio (GLP) JD Q4 2017: 461 Growth: -0.1% Total Gross Loan Portfolio (GLP) JD 29,782,057 34,322,156 15% Q4 2016: 29,782,057 Growth: 8% Q4 2017: 34,322,156 Average Outstanding Loan Size JD 426 461 8% Growth: 15% Women Borrowers 81% 80% -1% PAR >30 2.7% 2.6% -0.1% Written Off % 1.5% 1.3% -0.2% Number of Branches 27 31 15%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 14,178 14,328 1% Number of Loans Disbursed 14,326 13,505 -6% Amount of Loans Disbursed (JD) 9,843,116 10,348,807 5% Average Disbursed Loan Size (JD) 687 766 12% 42 | Tanmeyah Annual Report 2017

Mafraq Detailed performance Mafraq: Active Loans Mafraq: Gross Loan Portfolio 2 Mafraq Governorate is located in the north-east part of the Kingdom with an area of (26555.6) Km . Mafraq governorate 25,000 60% 9,000,000 70% was established administratively in 1986 and it’s around 70 km from Amman. The population spread there on large 8,000,000 spaces and areas within big distances between them and till now the number of population communities is 172. 50% 60% 20,000 7,000,000 50% The Governorate of Mafraq holds 29.9% of the total area of Jordan and it is second largest after Ma’an Governorate in 40% 6,000,000 15,000 terms of area and population size. 5,000,000 40% 30% 4,000,000 30% The population of the governorate is (580,000) representing 5.7% of the population of Jordan. The percentage of the 10,000 20% 3,000,000 male population is 51.5% and of females is 48.5%. 20% 5,000 2,000,000 10% 10% 1,000,000 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Active Borrowers Q4 2016: 19,407 Number of Branches Q4 2017: 21,977 Active Loans Q4 2016: 7 Growth: 13% Q4 2016: 20,433 Mafraq: Average Outstanding Loan Size Mafraq: Average Disbursed Loan Size Q4 2017: 8 Q4 2017: 21,567 Growth: 14% Growth: 6% 370 4% 800 25% 4% 700 360 20% 3% 600 350 15% 3% 500 340 2% 400 10% Written Off % Women Borrowers 2% 300 Q4 2016: 0.47% Q4 2016: 91% 330 5% Q4 2017: 0.32% Q4 2017: 91% 1% 200 Growth: -0.2% Growth: 0% 320 0% 1% 100

310 0% 0 -5% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.4% Total Gross Loan Q4 2016: 362 Q4 2017: 0.4% Portfolio (GLP) JD Q4 2017: 364 Growth: 0% Q4 2016: 7,395,758 Growth: 1% Q4 2017: 7,857,273 Growth: 6% Tanmeyah Annual Report 2017 | 43

Mafraq: Active Loans Mafraq: Gross Loan Portfolio

25,000 60% 9,000,000 70% 8,000,000 50% 60% 20,000 7,000,000 50% 40% 6,000,000 15,000 5,000,000 40% 30% 4,000,000 10,000 30% 20% 3,000,000 20% 5,000 2,000,000 10% 10% 1,000,000 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Active Borrowers Q4 2016: 19,407 Number of Branches Q4 2017: 21,977 Active Loans Q4 2016: 7 Growth: 13% Q4 2016: 20,433 Mafraq: Average Outstanding Loan Size Mafraq: Average Disbursed Loan Size Q4 2017: 8 Q4 2017: 21,567 Growth: 14% Growth: 6% 370 4% 800 25% 4% 700 360 20% 3% 600 350 15% 3% 500 340 2% 400 10% Written Off % Women Borrowers 2% 300 Q4 2016: 0.47% Q4 2016: 91% 330 5% Q4 2017: 0.32% Q4 2017: 91% 1% 200 Growth: -0.2% Growth: 0% 320 0% 1% 100

310 0% 0 -5% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.4% Total Gross Loan Q4 2016: 362 Q4 2017: 0.4% Portfolio (GLP) JD Performance Q4 2016 Q4 2017 Growth Q4 2017: 364 Growth: 0% Q4 2016: 7,395,758 Growth: 1% Active Borrowers 19,407 21,977 13% Q4 2017: 7,857,273 Growth: 6% Active Loans 20,433 21,567 6% Total Gross Loan Portfolio (GLP) JD 7,395,758 7,857,273 6% Average Outstanding Loan Size JD 362 364 1% Women Borrowers 91% 91% 0% PAR >30 0.4% 0.4% 0% Written Off % 0.47% 0.32% -0.2% Number of Branches 7 8 14%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 4,312 4,412 2% Number of Loans Disbursed 4,647 4,218 -9% Amount of Loans Disbursed (JD) 2,667,503 2,922,527 10% Average Disbursed Loan Size (JD) 574 693 21% 44 | Tanmeyah Annual Report 2017

Ajloun Detailed performance Ajloun: Active Loans Ajloun: Gross Loan Portfolio The governorate of Ajloun is located to the northwest side of the capital and is 76 km away from Amman. It is bordered 12,000 70% 6,000,000 80% to the north by Irbid governorate, 32 km away from the east, Jerash governorate, 25 km away from the south, Balqa 70% governorate 72 km to the west, (Northern Jordan Valley). It is characterized by its varied terrain. There are high and 10,000 60% 5,000,000 60% low areas where the heights varies from (1180) to (590) meters above sea level, which enables the Governorate to be 50% 2 8,000 4,000,000 characterized by the diversity of agricultural production, and the beauty of nature. The total area of Ajloun is (419.6) km . 50% This is estimated to be around 0.5% of the Kingdom’s area. Thus, Ajloun is considered to be the second smallest 40% 6,000 3,000,000 40% governorate In Hordan - after Jerash Governorate. 30% 30% 4,000 2,000,000 20% The population of Ajloun Governorate is about (185,700) people, which is (1.8)% of the population of the Kingdom. The 20% percentage of population is 51.4% males and 48.6% females. The number of households in the governorate is 36,862 2,000 1,000,000 10% 10% with an average of 5 individual members per household, compared with 4.8 in Jordan. 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Ajloun: Average Outstanding Loan Size Ajloun: Average Disbursed Loan Size Active Borrowers Q4 2016: 9,541 600 40% 700 12.00% Number of Branches Q4 2017: 10,109 Active Loans Q4 2016: 5 Q4 2016: 9,795 Growth: 6% 35% 600 Q4 2017: 5 Q4 2017: 9,880 500 10.00% Growth: 0% Growth: 1% 30% 500 400 8.00% 25% 400 300 20% 6.00% 300 15% 200 4.00% 200 10% 100 2.00% Written Off % Women Borrowers 5% 100 Q4 2016: 0.38% Q4 2016: 88% Q4 2017: 0.55% Q4 2017: 87% 0 0% 0 0.00% Growth: 0.2% Growth: -1% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.4% Total Gross Loan Q4 2016: 400 Q4 2017: 1.2% Portfolio (GLP) JD Q4 2017: 538 Growth: -0.2% Q4 2016: 3,921,624 Growth: 34% Q4 2017: 5,313,892 Growth: 36% Tanmeyah Annual Report 2017 | 45

Ajloun: Active Loans Ajloun: Gross Loan Portfolio

12,000 70% 6,000,000 80% 70% 10,000 60% 5,000,000 60% 50% 8,000 4,000,000 50% 40% 6,000 3,000,000 40% 30% 30% 4,000 2,000,000 20% 20% 2,000 1,000,000 10% 10%

0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Ajloun: Average Outstanding Loan Size Ajloun: Average Disbursed Loan Size Active Borrowers Q4 2016: 9,541 600 40% 700 12.00% Number of Branches Q4 2017: 10,109 Active Loans Q4 2016: 5 Q4 2016: 9,795 Growth: 6% 35% 600 Q4 2017: 5 Q4 2017: 9,880 500 10.00% Growth: 0% Growth: 1% 30% 500 400 8.00% 25% 400 300 20% 6.00% 300 15% 200 4.00% 200 10% 100 2.00% Written Off % Women Borrowers 5% 100 Q4 2016: 0.38% Q4 2016: 88% Q4 2017: 0.55% Q4 2017: 87% 0 0% 0 0.00% Growth: 0.2% Growth: -1% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Performance Q4 2016 Q4 2017 Growth Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.4% Active Borrowers 9,541 10,109 6% Total Gross Loan Q4 2016: 400 Q4 2017: 1.2% Portfolio (GLP) JD Active Loans 9,795 9,880 1% Q4 2017: 538 Growth: -0.2% Q4 2016: 3,921,624 Growth: 34% Q4 2017: 5,313,892 Total Gross Loan Portfolio (GLP) JD 3,921,624 5,313,892 36% Growth: 36% Average Outstanding Loan Size JD 400 538 34% Women Borrowers 88% 87% -1% PAR >30 1.4% 1.2% -0.2% Written Off % 0.38% 0.55% 0.2% Number of Branches 5 5 0%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 2,195 1,594 -27% Number of Loans Disbursed 2,192 1,526 -30% Amount of Loans Disbursed (JD) 1,430,576 1,011,584 -29% Average Disbursed Loan Size (JD) 653 663 2% 46 | Tanmeyah Annual Report 2017

Jerash Detailed performance Jerash: Active Loans Jerash: Gross Loan Portfolio Jerash governorate is located in the northern part of Jordan, in the western part of it South of Balqa, and to the east of 16,000 12% 8,000,000 18% Mafraq Governorate. Jerash governorate 45 km away from Amman. The Governorate has an area of about (409.8) Km2, or 16% (0.5%) of Jordan’s area size, rendering it the smallest governorate in terms of area size. 14,000 10% 7,000,000 12,000 8% 6,000,000 14% 12% The governorate’s population size is 250,000 or (2.5%) of the population of the Kingdom, and the percentage of males is 10,000 6% 5,000,000 52% and females 48%. The total number of households in the governorate is 49,352 with an average of 5 members per 10% 8,000 4% 4,000,000 households is 1.5 compared with 4.8 in the other governorates. 8% 6,000 2% 3,000,000 6% The total area of agricultural land in Jerash Governorate is about 161,225 thousand dunums. Fruit is grown on 4,000 0% 2,000,000 approximately 89% of the agriculture land in the governorate - particularly of olives and grapes. 4% 2,000 -2% 1,000,000 2% 0 -4% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Q4 2016: 14,553 Number of Branches Q4 2017: 14,627 Active Loans Jerash: Average Outstanding Loan Size Jerash: Average Disbursed Loan Size Q4 2016: 7 Growth: 1% Q4 2016: 14,846 Q4 2017: 7 Q4 2017: 14,567 600 14% 900 12% Growth: 0% Growth: -2% 800 500 12% 10% 700 10% 400 600 8% 8% 500 300 6% 6% 400 Written Off % Women Borrowers 200 300 4% Q4 2016: 0.6% Q4 2016: 73% 4% 200 Q4 2017: 0.8% Q4 2017: 73% 100 2% Growth: 0.2% Growth: 0% 2% 100 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 2.3% Total Gross Loan Q4 2016: 471 Q4 2017: 1.1% Portfolio (GLP) JD Q4 2017: 497 Growth: -1.2% Q4 2016: 7,395,758 Growth: 6% Q4 2017: 7,234,616 Growth: 4% Tanmeyah Annual Report 2017 | 47

Jerash: Active Loans Jerash: Gross Loan Portfolio

16,000 12% 8,000,000 18% 14,000 10% 7,000,000 16% 12,000 8% 6,000,000 14% 12% 10,000 6% 5,000,000 10% 8,000 4% 4,000,000 8% 6,000 2% 3,000,000 6% 4,000 0% 2,000,000 4% 2,000 -2% 1,000,000 2% 0 -4% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Q4 2016: 14,553 Number of Branches Q4 2017: 14,627 Active Loans Jerash: Average Outstanding Loan Size Jerash: Average Disbursed Loan Size Q4 2016: 7 Growth: 1% Q4 2016: 14,846 Q4 2017: 7 Q4 2017: 14,567 600 14% 900 12% Growth: 0% Growth: -2% 800 500 12% 10% 700 10% 400 600 8% 8% 500 300 6% 6% 400 Written Off % Women Borrowers 200 300 4% Q4 2016: 0.6% Q4 2016: 73% 4% 200 Q4 2017: 0.8% Q4 2017: 73% 100 2% Growth: 0.2% Growth: 0% 2% 100 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 2.3% Total Gross Loan Performance Q4 2016 Q4 2017 Growth Q4 2016: 471 Q4 2017: 1.1% Portfolio (GLP) JD Q4 2017: 497 Growth: -1.2% Active Borrowers 14,553 14,627 1% Q4 2016: 7,395,758 Growth: 6% Q4 2017: 7,234,616 Active Loans 14,846 14,567 -2% Growth: 4% Total Gross Loan Portfolio (GLP) JD 6,986,271 7,234,616 4% Average Outstanding Loan Size JD 471 497 6% Women Borrowers 73% 73% 0% PAR >30 2.3% 1.1% -1.2% Written Off % 0.6% 0.8% 0.2% Number of Branches 7 7 0%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 2,920 2,662 -9% Number of Loans Disbursed 3,043 2,642 -13% Amount of Loans Disbursed (JD) 2,154,758 2,061,779 -4% Average Disbursed Loan Size (JD) 708 780 10% 48 | Tanmeyah Annual Report 2017

Karak Detailed performance Karak: Active Loans Karak: Gross Loan Portfolio The governorate of Karak is located in the south of Jordan, and the area size is (3494.7) km2 or 3.9% of the Kingdom’s 35,000 25% 18,000,000 35% total area. The population of Karak governorate is about (333,900) people and the percentage is 52.2% males and 47.8% 30% females. The total number of households is (66,958), with an average of (5) individuals per household, compared to (4.8) 30,000 16,000,000 25% in the Kingdom. 20% 14,000,000 25,000 20% 12,000,000 15% 15% Karak Governorate is considered one of the most distinguished governorates because of its geographical and climatic 20,000 10,000,000 10% diversity and its diverse economic activities. It is characterized by the existence of many natural resources such as arable 15,000 8,000,000 5% land as well as mineral resources such as phosphates and sea salts. In the province there are phosphate mines in the 10% 6,000,000 0% White Valley and Potash Factory. These activities are of great importance at the national level, contributing significantly 10,000 -5% 4,000,000 to national exports. 5% -10% 5,000 2,000,000 -15% 0 0% 0 -20% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Q4 2016: 27,689 Number of Branches Active Loans Q4 2017: 30,571 Karak: Average Outstanding Loan Size Karak: Average Disbursed Loan Size Q4 2016: 13 Growth: 10% Q4 2016: 30,179 Q4 2017: 14 Q4 2017: 31,201 600 10% 900 18% Growth: 8% Growth: 3% 800 16% 500 5% 700 14% 400 0% 600 12% 500 10% 300 -5% 400 8% Written Off % Women Borrowers 200 -10% 300 Q4 2016: 0.23% Q4 2016: 99% 6% Q4 2017: 0.86% Q4 2017: 82% 200 4% Growth: 0.6% Growth: -17% 100 -15% 100 2% 0 -20% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.8% Total Gross Loan Q4 2016: 506 Q4 2017: 0.6% Portfolio (GLP) JD Q4 2017: 415 Growth: -0.2% Q4 2016: 15,259,498 Growth: -18% Q4 2017: 12,960,016 Growth: -15% Tanmeyah Annual Report 2017 | 49

Karak: Active Loans Karak: Gross Loan Portfolio

35,000 25% 18,000,000 35% 30% 30,000 16,000,000 25% 20% 14,000,000 25,000 20% 12,000,000 15% 15% 20,000 10,000,000 10% 8,000,000 5% 15,000 10% 6,000,000 0% 10,000 -5% 4,000,000 5% -10% 5,000 2,000,000 -15% 0 0% 0 -20% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Active Borrowers Q4 2016: 27,689 Number of Branches Active Loans Q4 2017: 30,571 Karak: Average Outstanding Loan Size Karak: Average Disbursed Loan Size Q4 2016: 13 Growth: 10% Q4 2016: 30,179 Q4 2017: 14 Q4 2017: 31,201 600 10% 900 18% Growth: 8% Growth: 3% 800 16% 500 5% 700 14% 400 0% 600 12% 500 10% 300 -5% 400 8% Written Off % Women Borrowers 200 -10% 300 Q4 2016: 0.23% Q4 2016: 99% 6% Q4 2017: 0.86% Q4 2017: 82% 200 4% Growth: 0.6% Growth: -17% 100 -15% 100 2% 0 -20% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.8% Total Gross Loan Performance Q4 2016 Q4 2017 Growth Q4 2016: 506 Q4 2017: 0.6% Portfolio (GLP) JD Q4 2017: 415 Growth: -0.2% Q4 2016: 15,259,498 Active Borrowers 27,689 30,571 10% Growth: -18% Q4 2017: 12,960,016 Active Loans 30,179 31,201 3% Growth: -15% Total Gross Loan Portfolio (GLP) JD 15,259,498 12,960,016 -15% Average Outstanding Loan Size JD 506 415 -18% Women Borrowers 99% 82% -17% PAR >30 0.8% 0.6% -0.2% Written Off % 0.23% 0.86% 0.6% Number of Branches 13 14 8%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 5,995 6,306 5% Number of Loans Disbursed 6,688 6,226 -7% Amount of Loans Disbursed (JD) 4,796,364 5,145,910 7% Average Disbursed Loan Size (JD) 717 827 15% 50 | Tanmeyah Annual Report 2017

Tafielh Detailed performance Tafielh: Active Loans Tafielh: Gross Loan Portfolio Tafileh is one of the main governorates in the south of the Kingdom. It is located in the southwestern partofthe 9,000 90% 5,000,000 80% Kingdom. It is bordered from the north by Karak and from the south and east by Ma'an governorates. It stretches 5 km 8,000 80% 4,500,000 east of the desert road and the area size is (2209.5) km2. 2.5% of the Kingdom. The population of the governorate is 70% 4,000,000 101,600 people, representing 1.0% of the population in Jordan. The percentage of the male population is 52.2% and the 7,000 70% 62% 3,500,000 percentage of females is 47.8%. 6,000 60% 3,000,000 50% 5,000 50% 2,500,000 40% The number of households in the governorate is (19,296), and the average number of individuals in each household is 4,000 40% (5) individuals, compared to (4.8) individuals in the Kingdom. 2,000,000 30% 3,000 30% 1,500,000 20% 2,000 20% 1,000,000 10% 1,000 10% 500,000 0 0% 0 0% Active Borrowers Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2016: 7,801 Number of Branches Q4 2017: 8,513 Active Loans Q4 2016: 4 Growth: 9% Q4 2016: 8,085 Q4 2017: 4 Q4 2017: 8,452 Growth: 0% Growth: 5% Tafielh: Average Outstanding Loan Size Tafielh: Average Disbursed Loan Size

600 30% 900 25% 800 500 25% 20% 700 20% 400 600 15% Written Off % Women Borrowers 15% 500 Q4 2016: 1.17% Q4 2016: 80% 300 10% 10% 400 Q4 2017: 0.20% Q4 2017: 78% Growth: -1.0% Growth: -2%% 200 300 5% 5% 200 100 0% 0% 100 0 -5% 0 -5% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.9% Total Gross Loan Q4 2016: 443 Q4 2017: 0.7% Portfolio (GLP) JD Q4 2017: 558 Growth: -0.2% Q4 2016: 3,579,435 Growth: 26% Q4 2017: 4,718,302 Growth: 32% Tanmeyah Annual Report 2017 | 51

Tafielh: Active Loans Tafielh: Gross Loan Portfolio

9,000 90% 5,000,000 80% 8,000 80% 4,500,000 70% 4,000,000 7,000 70% 62% 3,500,000 6,000 60% 3,000,000 50% 5,000 50% 2,500,000 40% 4,000 40% 2,000,000 30% 3,000 30% 1,500,000 20% 2,000 20% 1,000,000 10% 1,000 10% 500,000 0 0% 0 0% Active Borrowers Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2016: 7,801 Number of Branches Q4 2017: 8,513 Active Loans Q4 2016: 4 Growth: 9% Q4 2016: 8,085 Q4 2017: 4 Q4 2017: 8,452 Growth: 0% Growth: 5% Tafielh: Average Outstanding Loan Size Tafielh: Average Disbursed Loan Size

600 30% 900 25% 800 500 25% 20% 700 20% 400 600 15% Written Off % Women Borrowers 15% 500 Q4 2016: 1.17% Q4 2016: 80% 300 10% 10% 400 Q4 2017: 0.20% Q4 2017: 78% Growth: -1.0% Growth: -2%% 200 300 5% 5% 200 100 0% 0% 100 0 -5% 0 -5% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.9% Total Gross Loan Q4 2016: 443 Q4 2017: 0.7% Portfolio (GLP) JD Q4 2017: 558 Growth: -0.2% Q4 2016: 3,579,435 Growth: 26% Performance Q4 2016 Q4 2017 Growth Q4 2017: 4,718,302 Growth: 32% Active Borrowers 7,801 8,513 9% Active Loans 8,085 8,452 5% Total Gross Loan Portfolio (GLP) JD 3,579,435 4,718,302 32% Average Outstanding Loan Size JD 443 558 26% Women Borrowers 80% 78% -2% PAR >30 0.9% 0.7% -0.2% Written Off % 1.17% 0.20% -1.0% Number of Branches 4 4 0%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 1,674 1,530 -9% Number of Loans Disbursed 1,745 1,515 -13% Amount of Loans Disbursed (JD) 1,150,819 1,202,204 4% Average Disbursed Loan Size (JD) 659 794 20% 52 | Tanmeyah Annual Report 2017

Ma'an Detailed performance Ma'an: Active Loans Ma'an: Gross Loan Portfolio Ma'an Governorate is located in the south of Jordan. It extends from the borders of Amman Governorate in the north to 6,000 60% 2,000,000 140% the Jordanian-Saudi border in the south, and from the border of the Wadi Araba district in the western region of Aqaba, 1,800,000 2, with an area of (32832.3) km is 37%. Ma'an Governorate is considered one of the largest governorates in the Kingdom. 5,000 50% 120% 1,600,000 Ma'an is characterized by its relative proportionality, and the natural surface is divided into two natural units: desert and 1,400,000 100% mountains. 4,000 40% 1,200,000 80% 3,000 30% 1,000,000 The population of the governorate is (152,000), or (1.5%) of the population of the Kingdom, with a population of 52.3% 60% 800,000 males and 47.7% females. The number of household is 30,214 and the average number of individuals per household is 2,000 20% (5) individuals, compared to (4.8) people in the Kingdom. 600,000 40% 400,000 1,000 10% 20% 200,000 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Active Borrowers Q4 2016: 4,176 Number of Branches Q4 2017: 5,674 Active Loans Q4 2016: 2 Growth: 36% Q4 2016: 3,808 Q4 2017: 4 Q4 2017: 4,943 Ma'an: Average Outstanding Loan Size Ma'an: Average Disbursed Loan Size Growth: 100% Growth: 30% 500 70% 800 50% 450 60% 700 40% 400 50% 600 350 40% 30% 500 300 30% 400 20% Written Off % Women Borrowers 250 20% Q4 2016: 0.35% Q4 2016: 56% 300 10% Q4 2017: 0.20% Q4 2017: 82% 200 10% 200 Growth: -0.2% Growth: 26% 150 0% 0% 100 -10% 100 50 -20% 0 -10% 0 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.4% Total Gross Loan Q4 2016: 435 Q4 2017: 0.3% Portfolio (GLP) JD Q4 2017: 378 Growth: -0.1% Q4 2016: 1,655,803 Growth: -13% Q4 2017: 1,867,615 Growth: 13% Tanmeyah Annual Report 2017 | 53

Ma'an: Active Loans Ma'an: Gross Loan Portfolio

6,000 60% 2,000,000 140% 1,800,000 5,000 50% 120% 1,600,000 100% 4,000 40% 1,400,000 1,200,000 80% 3,000 30% 1,000,000 60% 800,000 2,000 20% 600,000 40% 400,000 1,000 10% 20% 200,000 0 0% 0 0% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Active Borrowers Q4 2016: 4,176 Number of Branches Q4 2017: 5,674 Active Loans Q4 2016: 2 Growth: 36% Q4 2016: 3,808 Q4 2017: 4 Q4 2017: 4,943 Ma'an: Average Outstanding Loan Size Ma'an: Average Disbursed Loan Size Growth: 100% Growth: 30% 500 70% 800 50% 450 60% 700 40% 400 50% 600 350 40% 30% 500 300 30% 400 20% Written Off % Women Borrowers 250 20% Q4 2016: 0.35% Q4 2016: 56% 300 10% Q4 2017: 0.20% Q4 2017: 82% 200 10% 200 Growth: -0.2% Growth: 26% 150 0% 0% 100 -10% 100 50 -20% 0 -10% 0 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Average Qustanding PAR >30 Loan Size JD Q4 2016: 0.4% Total Gross Loan Q4 2016: 435 Q4 2017: 0.3% Portfolio (GLP) JD Q4 2017: 378 Growth: -0.1% Performance Q4 2016 Q4 2017 Growth Q4 2016: 1,655,803 Growth: -13% Q4 2017: 1,867,615 Active Borrowers 4,176 5,674 36% Growth: 13% Active Loans 3,808 4,943 30% Total Gross Loan Portfolio (GLP) JD 1,655,803 1,867,615 13% Average Outstanding Loan Size JD 435 378 -13% Women Borrowers 56% 82% 26% PAR >30 0.4% 0.3% -0.1% Written Off % 0.35% 0.20% -0.2% Number of Branches 2 4 100%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 976 1,388 42% Number of Loans Disbursed 878 1,172 33% Amount of Loans Disbursed (JD) 594,135 886,691 49% Average Disbursed Loan Size (JD) 677 757 12% 54 | Tanmeyah Annual Report 2017

Aqaba Detailed performance Aqaba: Active Loans Aqaba: Gross Loan Portfolio The Aqaba Special Economic Zone Authority provides financial independence and management for the governorate, 10,000 18% 7,000,000 500% and is responsible for the organization and development of the region. Aqaba is bordered by the sea with neighboring 9,000 16% countries and the outside world through four ports and border crossings: 1. Berri crossing (Durra border center) and 6,000,000 400% 8,000 14% connects the Kingdom with Saudi Arabia and is located south of the city of Aqaba with (26) km2. Connecting the Kingdom 7,000 5,000,000 300% with the port of Nuweiba in the Arab Republic of Egypt and is located near the marine science station south of the city 12% of Aqaba 3. Airport center of the borders of King Hussein International Airport 4. Bari crossing (Wadi Araba crossing) / 6,000 10% 4,000,000 200% southern crossing. 5,000 8% 3,000,000 100% 4,000 6% The population of the governorate is 198,500 representing only (2%) of the Kingdom’s total population. The gender 3,000 4% 2,000,000 0% distribution in the governorate is 56.6% males and 43.4% females. The number of households in the governorate is 2,000 2% 1,000,000 -100% 40,636 with an average of 4.9 persons per household compared with 4.8 persons in the rest of the Kingdom. The 1,000 0% Aqaba Special Economic Zone Authority provides financial independence and management for the governorate, and is 0 -2% 0 -200% responsible for the organization and development of the region. Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Aqaba: Average Outstanding Loan Size Aqaba: Average Disbursed Loan Size

Active Borrowers 800 80% 1,200 30% Q4 2016: 9,000 Number of Branches Q4 2017: 9,642 Active Loans 700 60% 1,000 25% Q4 2016: 5 Growth: 7% Q4 2016: 9,418 600 Q4 2017: 5 Q4 2017: 9,414 40% 20% Growth: 0% Growth: 0% 800 500 20% 15% 400 600 0% 10% 300 400 -20% 5% 200 200 100 -40% 0% Written Off % Women Borrowers Q4 2016: 0.2% Q4 2016: 81% 0 -60% 0 -5% Q4 2017: 0.3% Q4 2017: 81% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: 0.1% Growth: 0%

Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.7% Total Gross Loan Q4 2016: 596 Q4 2017: 1.9% Portfolio (GLP) JD Q4 2017: 684 Growth: 0.2% Q4 2016: 5,611,071 Growth: 15% Q4 2017: 6,437,289 Growth: 15% Tanmeyah Annual Report 2017 | 55

Aqaba: Active Loans Aqaba: Gross Loan Portfolio

10,000 18% 7,000,000 500% 9,000 16% 6,000,000 400% 8,000 14% 7,000 12% 5,000,000 300% 6,000 10% 4,000,000 200% 5,000 8% 3,000,000 100% 4,000 6% 3,000 4% 2,000,000 0% 2,000 2% 1,000,000 -100% 1,000 0% 0 -2% 0 -200% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Aqaba: Average Outstanding Loan Size Aqaba: Average Disbursed Loan Size

Active Borrowers 800 80% 1,200 30% Q4 2016: 9,000 Number of Branches Q4 2017: 9,642 Active Loans 700 60% 1,000 25% Q4 2016: 5 Growth: 7% Q4 2016: 9,418 600 Q4 2017: 5 Q4 2017: 9,414 40% 20% Growth: 0% Growth: 0% 800 500 20% 15% 400 600 0% 10% 300 400 -20% 5% 200 200 100 -40% 0% Written Off % Women Borrowers Q4 2016: 0.2% Q4 2016: 81% 0 -60% 0 -5% Q4 2017: 0.3% Q4 2017: 81% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Growth: 0.1% Growth: 0%

Performance Q4 2016 Q4 2017 Growth Active Borrowers 9,000 9,642 7% Average Qustanding PAR >30 Loan Size JD Q4 2016: 1.7% Active Loans 9,418 9,414 0% Total Gross Loan Q4 2016: 596 Q4 2017: 1.9% Portfolio (GLP) JD Q4 2017: 684 Growth: 0.2% Total Gross Loan Portfolio (GLP) JD 5,611,071 6,437,289 15% Q4 2016: 5,611,071 Growth: 15% Q4 2017: 6,437,289 Average Outstanding Loan Size JD 596 684 15% Growth: 15% Women Borrowers 81% 81% 0% PAR >30 1.7% 1.9% 0.2% Written Off % 0.2% 0.3% 0.1% Number of Branches 5 5 0%

Performance Q4 2016 Q4 2017 Growth Total Disbursed Loans (Borrowers) 1,830 1,777 -3% Number of Loans Disbursed 1,917 1,598 -17% Amount of Loans Disbursed (JD) 1,709,040 1,797,903 5% Average Disbursed Loan Size (JD) 892 1,125 26% 56 | Tanmeyah Annual Report 2017

Microfinance and Employment Opportunities The microfinance sector supports the local economies through a set of direct and indirect services tailored tothe needs of the targeted segments . Through microfinance operations, the microfinance institutions provide quality services to unserved clients, to help them grow their businesses and contribute to their local economy and. The Jordanian microfinance sector also supports the government in overcoming the challenges of poverty and unemployment.

The success of the microfinance sector has been achieved through a thorough understanding the different needs of the clients, and translating their needs into financial products, which maintains the characteristics and features of the provided services and products that matches their entrepreneurial profile of these clients.

The impact of the financial and non-financial services provided by the microfinance sector is not limited to the clients themselves, but also affects the family members of the clients. The effect can be gradually detected, through the transformation of the client`s life style, and in the improvement in access and quality of the basic needs, which includes: nutrition, schooling, clothing and medical services.

In 2017, the microfinance sector was able to provide loans for more than 417 thousand clients, of which 76% were females. Moreover, 69% of the operations were executed outside the capital of Amman, in the more underprivileged areas of the Kingdom. The microfinance sector in Jordan is believed to have helped create around 125 thousand businesses opportunities (individual businesses).

Further assumptions may go to suggesting that more than 1 million Jordanians, assuming the average family members in Jordan is four members only, as per the below description:

Total Number of Microfinance Clients

The Total Number of MFIs Clients are 417,302

Assuming 30% of the clients start/grow businesses

125,190 employed clients

Assuming 10% of clients start/grow businesses and have 2 employess

83,460 employed opportunity made by the MF sector

Total Number of Microfinance Clients

The Total Number of MFIs Clients are 417,302

76% of the clients Female Based

31,714,952 employed clients

Average family members in jordan (4.8) member, assuming the number is only (4)

1.3 Million households supported by the sector Tanmeyah Annual Report 2017 | 57

Social Performance of the Microfinance Sector In Microfinance, the double bottom line approach is the ideal method to make a positive impact on the served people, therefore, it is a commitment to the clients, the society, and is the way to achieve stability and growth in the industry. All of Tanmeyah’s members believe that in order to serve the best interests of the institution they need to question everything they do along the way, step by step.

Road maps regarding social performance are in place, because the network’s members strongly believe that measuring Social Performance is important for tracking social indicators and to allow for a more holistic assessment of their performance. In addition, measuring and reporting on Social Performance helps to provide evidence of the impact and extent that the MFI’s services have on the lives of its clients, particularly with respect to its role as an effective tool in helping to alleviate poverty and generate employment.

Social Objectives “It is a commitment of building a steady balance between social and financial goals.”

Social Performance is the embodiment of any institution’s social goals; and a translation of these goals into practices that are in line with the accepted social values. It includes financial inclusion (sustainably serving increasing numbers of poor and excluded people), improving the quality and appropriateness of financial services, improving the economic and social conditions of clients, and ensuring social responsibility to clients, employees and the communities they serve.

The social value of microfinance relates to the way financial services improve the lives of poor and excluded clients and their families and widen the range of opportunities for communities. To create this value, the social objectives of all microfinance institutions in the network include the following objectives: • Serve increasing numbers of poor and excluded people in an ongoing by expanding the outreach; Total Number of Microfinance Clients • Improve the quality of the available financial services to target clients by assessing their needs; • Create benefits not only for clients, but also, for their families and communities by adapting nonfinancial services like micro-insurance and education; The Total Number of MFIs Clients are 417,302 • improve the social responsibility towards the employees, clients and the community; • Work together to adapt the client protection principles, mainly the prevention of over-indebtedness by improving systems, policies and procedures. Assuming 30% of the clients start/grow businesses SPM is important for both clients and for business, and can significantly improve the effectiveness of organizations by allowing them to incorporate social outcome data into their management systems, understanding what products and 125,190 employed clients services best meet the needs of clients, and assessing over time if they are performing these tasks effectively. Special attention is given to marginalized groups, including female, rural and youth clients, as well as the number of jobs supported, which are monitored and reported on a monthly basis. Assuming 10% of clients start/grow businesses and have 2 employess Key indicators 83,460 employed opportunity made by the MF sector The network’s members have identified a minimum set of measurable social impact indicators that relate to client outreach, livelihood, achieving satisfaction and productivity, while minimizing possible negative impacts.

Total Number of Microfinance Clients

The Total Number of MFIs Clients are 417,302

76% of the clients Female Based

31,714,952 employed clients

Average family members in jordan (4.8) member, assuming the number is only (4)

1.3 Million households supported by the sector 58 | Tanmeyah Annual Report 2017

Key indicators – Clients As of December 31, 2017, Tanmeyah’s had 417,302 active clients. Of these, 76% were women and 43% were youth. Clients living in rural areas constituted 34% of total client for the same period.

The chart below illustrates the target markets by segment as a percentage of total active clients for FY 2018.

Target Clients 2018

Clients living in ruralal areas 34%

Clients living in urban areas 66%

Youth (18-30) 43%

Women 76%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Key indicators – Empowering Women Microfinance programs around the world have generally targeted women as clients. Studies have shown that women often prove to be financially responsible with good repayment performance, and have a more far-reaching social impact than men on their households.

Jordanian MFIs believe that access to financial services can empower women to become more confident, more assertive, and more likely to participate in family and community decisions, which is reflected in the continued concentration and focus on targeting women and high percentage of women clients which reached 76% in FY 2018.

At the same time, females constitute 52% of employees of the network’s member MFIs. With regards to Board represnentation, women constitute 38% of the members’ Boards.

The charts below demonstrate percentages of women in the most relevant categories:

Board Composition Staff Composition

Total number of 56% board members Men / Managment Staff 141 44% 38% Women / Managment Staff 110 12% 40 Number of Managment Staff 251

Client Composition Men of Staff 48% 1046 Active clients % Female active clients Women of Staff 52% 1129 417,302 76% 0 200 400 600 800 1000 1200

In the network we believe that developing appropriate products and services can have a strong, positive impact on women›s empowerment, resulting in women owning more assets, having a more active role in family decisions, and increasing investment in family welfare Tanmeyah Annual Report 2017 | 59

Key indicators – Outreach

Number of branches 186 Branches in urban areas 66% Branches in rural areas 31% Target Clients 2018 Branches in excluded/poor areas (poverty pockets) 28%

As of the end of December 2017, the percentage of branches in rural areas across the Kingdom had reached 31%, and 28% in the poverty pockets, with a total number of branches of (186) branch. Clients living in ruralal areas 34% Client Protection Tanmeyah’s members are focused on client protection and are are Smart Campaign endorsers. MFIs provide different Clients living in urban areas 66% types of loan products, and there is a clear focus on staff training to ensure that they are able to assess client needs properly and offer the right product to the so that they are not harmed by over-indebtedness. Moreover,; Tanmeyah’s members use a sharing information system where they share information on the credit worthiness of their borrowers as Youth (18-30) 43% a best practices standard to reduce cross lending and client over-indebtedness.

Demand-Driven Services Women 76% It is very important that MFIs also consider the nonfinancial products, and in always questioning the value that they add to their clients’ lives? Jordanian MFIs pioneered the introduction of insurance services that reduce clients’ risk. A combination of several insurance strategies is provided by most of the network’s members to their clients, to cover not only credit life but also, accidents, medical protection, and disabilities. 0% 10% 20% 30% 40% 50% 60% 70% 80%

Board Composition Staff Composition

Total number of 56% board members Men / Managment Staff 141 44% 38% Women / Managment Staff 110 12% 40 Number of Managment Staff 251

Client Composition Men of Staff 48% 1046 Active clients % Female active clients Women of Staff 52% 1129 417,302 76% 0 200 400 600 800 1000 1200 60 | Tanmeyah Annual Report 2017

TANMEYAH`S ACCOMPLISHMENTS IN 2017

Communications and Marketing Tanmeyah – Jordan Microfinance Network has developed a Communication and Advocacy Plan, which has guided its communications, marketing, and advocacy activities in FY 2017.

Social Media The network created a Facebook page and re-launched its website in 2017. Tanmeyah’s Facebook page had more than 10,000 active followers as of Dec. 2017. The main goal of the network’s social media platform is to disseminate the right messages about the microfinance sector, that aims at correcting any misconceptions and highlighting the members’ latest news, services, and activities, as a means of educating the public about the financial and non-financial services that these microfinance institutions provides. Moreover, the Facebook page serves to provide the latest local and international news about the microfinance sector.

Website Tanmeyah`s website is another key tool in the network’s communication and advocacy process. This is particularly relevant since the majority of the website’s visitors are foreigners, so the network focuses on displaying the Jordanian microfinance sector’s experience and evolution and its successes in combating poverty through creating job opportunities for unprivileged people through access to financial services offered by the MFIs.

Figure 4: Snapshots from Tanmeyah`s FB Page and Revamped Website Tanmeyah Annual Report 2017 | 61

Blood Donation Campaign In May 2017, Tanmeyah Jordan Microfinance Network, launched a “Blood Donation” campaign for its MFIs members, as part of its efforts in spreading awareness on the MF sector’s social responsibility towards the Jordanian community. The “Blood Donation” campaign was the first of its kind activity in Jordan, as the MFIs came together under Tanmeyah’s umbrella to represent what the MF sector stands for in Jordan. The campaign managed to collect over 121 blood units saved in the Jordanian blood bank.

Pictures, videos, and press releases were disseminated over the local Jordanian media, which has helped in creating good word-of-mouth about the sector and attract the attention of the donors and stakeholders. 62 | Tanmeyah Annual Report 2017

Ramadan Events During the holy month of Ramadan of 2017, Tanmeyah – Jordan Microfinance Network, organized five Iftar feasts for orphanages and elderly people in an effort to draw smiles on their faces. The campaign was launched under the name of “Jam`et Kheir” which refers to a “Good Gathering” in English. The five events were not only limited to the Iftar meals, but they have also engaged kids and elderly people in a number of fun and conversations.

Press releases and pictures were shared on both online and print Jordanian media, which helped in highlighting the Jordanian MF sector’s commitment to serving the community, and . contributing to positioning the Jordanian MFIs as professional, well-structured, financially sustainable and socially-responsible institutions that are operating under international best practices and standards. Tanmeyah Annual Report 2017 | 63

Microfinance Documentary Videos Tanmeyah – Jordan Microfinance Network, has also taken another serious step towards promoting the accomplishments of the Jordanian microfinance sector, through a series of “Informative Videos” about the sector that illustrate the essence of the sector and the value-added financial and non-financial services that MFIs offers. The videos included a group of interviews with the MFIs staff, stakeholders, and beneficiaries, giving them the chance to explain their work mechanisms, experiences, and opinions about the microfinance sector. Microfinance employees had the chance to talk about their institutions’ operations and the standards they follow in performing their daily tasks. The videos provide good exposure to the work of Tanmeyah’s members and send out messages to the public that will help reinforce the image of MFIs as professional institutions following international best practices and standards. 64 | Tanmeyah Annual Report 2017

Capacity Building During 2017, Tanmeyah – Jordan Microfinance Network, has successfully conducted two training courses for its member MFIs Loan Officers, to help them provide more responsible and efficient finance to the clients.The two trainings were selected based on a “Training Needs Assessment” that was circulated to the eight MFIs members of Tanmeyah, to assist them with their technical capacity building needs. Based on the members’ responses, Tanmeyah managed to identify and prioritize the capacity building needs for the practitioners of the microfinance sector in Jordan.

The first training took place in August 2017 covering the basics of “Credit Financial Analysis” to help Loan Officers understand key financial indicators to be able to direct their clients towards making better financial decisions and understanding their financial needs. This would ultimately be reflected positively on the MFIs’ gross loan portfolio through decreased portfolio at risk. The second training took place in October 2017 covering the advanced basis of “Credit Financial Analysis” continuing the basis of the first training for what it has to do with more mathematical and financial calculations; which will help the LOs with their feasibility studies and financial ratios. Tanmeyah Annual Report 2017 | 65

Data Collection and Analysis As the sole microfinance network in Jordan, Tanmeyah is the only source of information on the sector`s consolidated performance. The network collects key microfinance indicators from its members on a quarterly basis, which allows for meaningful comparisons and analysis of the Jordanian microfinance sector’s performance over time.

The importance of these analyses relies in supporting MFIs members when making their market expansion decisions, and meeting the various and changing needs of their clients by introducing new financial & non-financial products and services. Tanmeyah along with the support of its members work hand in hand to raise the awareness level of the targeted segments and helping them to run and grow their businesses in order to reach the desired financial sustainability and avoid reaching over indebtedness.

66 | Tanmeyah Annual Report 2017

MICROFINANCE CLIENTS’ SUCCESS STORIES IKhlas – Dairy Shop

Ikhlas`s journey started when she realized that her kids were growing up so fast with a big responsibility on her shoulders. Ikhlas Hasan is a 42 years old mother of four children that has dedicated her life to educating her children and giving them the lifestyle she has always aspired. She lives in a village in Ajloun Governorate with her husband Mohammed, who is an agricultural engineer that works for the Ministry of Agriculture with a modest salary. Mohammed and Ikhlas decided to open a dairy shop. They rented a small shop, bought the needed equipment’s, and secured milk from a nearby farm.

In May 2016 the dairy shop Rabou ‘Abin was opened, it used to take Ikhlas longs hours to make buttermilk since she was the only worker at the shop and the equipment was incomplete, she only had an incubator for heating, and the rest of the dairy products were made manually. After a period of time, Ikhlas and her husband noticed that the shop did wasn`t performing as expected, therefore Ikhlas and Mohammed started to look for financial support to grow their project, and decided to approach one of the microfinance institutions in their area.

Now, Ikhlas is producing big amounts of buttermilk in a short period of time, thanks to having the funding needed to buy the additional equipment, and is also making cheese, butter, and yogurt, alongside pickles as an extra product line to support her shop. Ikhlas`s dairy shop has attracted the attention of customers from all over the Jordanian kingdom, and Ikhlas is currently working on further growing her shop into a medium sized dairy shop. Tanmeyah Annual Report 2017 | 67

Emad - Sewing Shop Back in 2004, Emad started working with only one sewing machine in a small empty storeroom where he would stitch and fix clothes. For six years straight, he continued doing that along with the dream of wanting to have a sewing machine and be able to develop his work. As the years passed, Emad wanted to make his dream come true. That is when he decided to approach one of the microfinance institutions in 2010 asking for financial support and an opportunity to help achieve his goal to make a successful story out of it. With the first financial support, Emad was able to buy the primary supplies and a new sewing machine to help with his outstanding talent in sewing and tailoring Arabian Bedouin style living rooms, which are highly demanded in the region of Na’our. The microfinance, institution that Emad approached continued to renew the loan, which enabled him to not only expand his work but to also help others in becoming skilled tailors to work with him. In 2013, Emad asked for another loan, to help him open another branch for sewing curtains in addition to tailoring Arabian and Gulf styled living rooms and fixing and sewing clothes. This gave him an exceptional reputation that spread throughout the region on Na’our and all other regions around it.

“It was the most beautiful feeling ever when I saw my dream comes true; because of God`s will and the help of this microfinance institution, I now own two sewing shops. I managed to create job opportunities for others in the area, I became capable of supporting my children and offering them a proper education plan, and I was able to improve my family’s income… and for that I will always be grateful,”Emad says.

Yousef Altorjma- Optical Shop Yousef owns an optical shop in Amman, with a sustainable income, which has helped him in growing his shop. Yousef sets an inspiring example for others; with his ambition as a young man, and how he had overcome all of the obstacles in the way, yet managed to have his own shop, and made his dream come true.

Yousef`s story began in 2013, when he decided to approach one of the microfinance institutions, after getting his first loan, he decided to reapply for a second loan in order to help him in developing his business and increase the shop`s productivity. 68 | Tanmeyah Annual Report 2017

Ibrahim - Textile Upholstery Shop

Ibrahim`s journey started with an idea of having a small project that will assist him and his family financially. Thanks to his determination, Ibrahim now is the owner of a textile upholstery shop in Madaba. With the support he received from the microfinance institution, he was able to get the needed finance to buy the needed products for the shop. Now Ibrahim was able to attract new customers and retain existing ones. Hehopes to expand his business to reach regional markets, and serve a bigger customer segment.

Khaled - Maquette Shop When creativity and innovation meet determination.

Khaled has a talent for building environmental friendly maquettes. When Khaled started with his passion for maquettes, he used to make maquettes for cars only, but after a while, he started making maquettes for building, using old wires. One of Khalid`s major accomplishmentwas creating a maquette for the city of Petra, which was displayed in France, and he also succeeded in making a maquette for a classical car that was also displayed in Germany. Khaled`s passion enabled him to secure a sustainable income, which will assist him throughout his journey. Now Khaled wants to have his own shop, where he will be able to display all of his Marquette’s, which represents pure devotion for his passion in engineering.