Inspired by the Bank’s institutional motto Despite this opportunity being available “More than just a bank”, Jordan Kuwait to all, Mr. Ghandour grasped the idea, Bank makes the effort to introduce, every studied and executed it after assessing year, a new theme for its annual report; its value, importance and market need for highlighting examples of great Jordanian it, acknowledging that the biggest risk was minds whose outstanding and creative a missed opportunity. achievements have impacted the Jordanian Mr. Ghandour would have not been society, whether on an economic, social, satisfied with founding a courier delivery artistic or cultural aspect and have been business similar to tens even hundreds recognized on both local and global around the world. From the beginning, levels. he was determined to create a business JKB Management envisioned that the model that symbolizes his will power and theme of its 2010 annual report “Leading determination, and by which his aspirations by Example” is depicted by the success would be fulfilled, through transforming story and the journey of a talented and his success into a leading example to the innovative Jordanian, an entrepreneur, young Jordanian and Arab entrepreneurs, an angel investor and mentor, a man of whose eagerness in realizing their determination and exceptional creativity, business dreams should not be hindered and his successful Arab born and world by fear of adverse circumstances and renowned company. It is the success story prevailing challenges, for the secret of of Mr. Fadi Ghandour and his company, getting ahead is getting started. Aramex. JKB management and staff are pleased to At an early stage of his professional career, introduce this leading example within its Mr. Ghandour set a goal for himself and 2010 annual report, confirming its pride a vision for his future. With his keen eye, and admiration in Mr. Fadi Ghandour’s he saw a business opportunity and niche success. JKB would like to wish Mr. in both Jordan and the Arab region for an Ghandour and the team at Aramex international courier delivery business. continued success and further prosperity. When the symbol ARMXF appeared on the NASDAQ on January and the provider of the tracking system that the global network 1997, joining some of the world’s most successful companies, relied on, was acquired by a major competitor, which meant that it was the first time that an Arab-based company was listed on its crucial technology platform would no longer be available. inarguably the world’s most famous exchange. A small step for Aramex’s dedication to fostering an entrepreneurial team and the Arab World, but a giant leap for a company which started investment in technology was translated into a solution for the its life in Jordan by founder and CEO, Fadi Ghandour. 15 years alliance: its IT team in Jordan had already started developing an of hard work, the listing came as confirmation of Aramex’s alternative state-of-the-art tracking system, and consequently ability to compete on a global playing field. Today, the company made it available to the Global Distribution Alliance (GDA). It that Ghandour founded is a global logistics and transportation remains in use by all members to this day. solutions provider, employing more than 10,000 employees in After five years of successful trading on NASDAQ, Aramex over 53 countries and over 294 locations around the world. decided to delist and moved into private ownership through a In a region dominated by family enterprises, Aramex’s agile leveraged management buyout with Dubai-based Abraaj Capital, business model, which invests in people and technology over thus introducing private equity as a viable financing model in fixed assets, was able to break traditional business boundaries the Middle East. In 2005, Aramex went public on the Dubai and transcend borders; a journey of trial and error, certainly, Financial Market in a record-breaking IPO that made available but one which owes its success to the ingenuity of Aramex’s a total of 550 million shares at a price of 1 United Arab people. Emirates dirham per share and was 80 times oversubscribed. Aramex’s story began in 1982, when Ghandour saw an In the ensuing two years, the company launched a strategy to unfilled niche in the region for an international courier delivery expand its product offering and global presence, with a focus business. He partnered with a friend, William (Bill) Kingson, on emerging markets. and set up two offices, one in Amman Aramex is continually committed to and one in New York City. One office at Aramex’s story embodies a long delivering value to all stakeholders: a time and by tapping into local talents journey of perseverance, dedication employees, shareholders, customers, and capabilities, Aramex grew its network and an unending routine of trial- business partners, communities, and the and became known as the “Courier of environment. This management approach Courier Companies”, operating as a and-error. It is one that represents is embedded in the company’s business wholesale delivery service provider for turning odds into opportunities model and is a reflection of its values larger American and European courier and adapting to market demands and corporate culture. In 2006, Aramex companies in need of coverage in the and changes. was the first company in the region Middle East. to release an independently audited The company quickly evolved into a leader in the region, sustainability report, and, in 2011, it released an integrated offering customized services, from the smallest of packages report highlighting the role of sustainability in the company’s to the most comprehensive of logistics solutions. Aramex was operations, performance, and overall strategic direction. able to deliver on its promise thanks to a corporate culture that In addition to his current role as CEO of Aramex, Ghandour is embraces innovation, encourages entrepreneurship, adopts a also an avid angel investor who dedicates a significant amount decentralized and flat structure, and empowers the frontlines to of his time to mentoring youth. Ghandour is also passionate make decisions and customize solutions that meet customers’ about social entrepreneurship, youth empowerment, and needs. sustainable community development. He helped found Ruwwad Aramex began to expand rapidly to Asia, Africa, Europe, and for Development, a regional private sector-led community North America. The company co-founded a strategic alliance empowerment initiative that helps disadvantaged communities of over 40 independent express couriers, which served as a overcome marginalization through youth activism, civic worldwide delivery network, giving Aramex immediate business, engagement, and education. Ghandour also serves as a board vast geographic reach, and deeper knowledge of the industry. member of various leadership, entrepreneurship, and business In 2003, Aramex’s alliance partner in the US, Airborne Express, organizations in the region. Public Ltd. Company Established 25/10/1976 Commercial Register Number 108 Paid-up Capital JD 100 Million (USD 141 Million) Member of “KIPCO” Group-Kuwait Our Vision... “ To be one of the pioneer Arab banks through offering distinguished comprehensive banking solutions, in line with the latest developments in banking industry and e-business in the world “ Our Mission... “ We are a Jordanian banking institution which offer global services assured with high quality and professionalism by taking full advantage of the Bank’s advanced technological capabilities and its staff efficiency to render qualified services to customers. JKB seeks to diversify its customer base to include various Jordanian & Arab economic sectors, in order to achieve a rewarding yield to shareholders, in addition to enhance the national economy development, and society welfare.” Contents Board of Directors 15 Message from the Chairman 17 The Board of Directors’ Statement on Corporate Governance 21 Management Discussion and Analysis 26 JKB Activities & Achievements in 2010 27 Major Financial Indicators and Ratios 2010 & 2009 34 Executive Management 36 2011 Business Plan 39 Independent Auditor’s Report 42 Consolidated Financial Statements for 2010 44 Notes to the Consolidated Financial Statements 49 Additional Disclosure 91 Annex: JKB Corporate Governance Manual HIS MAJESTY KING ABDULLAH II BIN AL-HUSSEIN HIS HIGHNESS SHEIKH SABAH AL-AHMAD AL-SABAH EMIR OF THE STATE OF KUWAIT HIS ROYAL HIGHNESS PRINCE HUSSEIN BIN ABDULLAH II THE CROWN PRINCE Aramex views sports as a healthy reflection of values embedded in its culture: positive competition, teamwork, perseverance, agility and drive. 14 JORDAN KUWAIT BANK Board of Directors Chairman • H.E. Mr. Abdel Karim A. Kabariti Vice Chairman • Mr. Faisal Hamad Al-Ayyar Rep.: United Gulf Bank – Bahrain Members Board of Directors • Mr. Emad Jamal Kudah Rep.: Social Security Corporation – Jordan • Dr. Yousef Musa Goussous Rep.: Burgan Bank - Kuwait • Mr. Masaud Mahmoud Jawhar Hayat Rep.: Al- Futtooh Holding Co. - Kuwait • Mr. Tariq Moh’d Abdul Salam Rep.: Kuwait Projects Co. (Holding) – Kuwait • Mr. Farouk Aref Al-Aref • Mr. Moh’d Ahmad Abu Ghazaleh • Mr. Mansour Ahmad Louzi Rep.: Strategy Co. for Investments – Jordan Board Secretary/General Manager • Mr. “Moh’d Yaser” M. Al-Asmar Auditors • Deloitte & Touche (M.E) - Jordan ANNUAL REPORT 2010 15 People are Aramex’s most valuable asset. 16 JORDAN KUWAIT BANK Message from the Chairman To the Shareholders: function of evaluating risks and soundness of operating methods