Ownership and Legal Status

Tadamon Islamic Bank was established and registered as a public company with limited liability in Khartoum in 1981, and has operated since with criteria based on firm obligations towards Islamic Shari'a. The Bank carries out its business activities through its head office in Khartoum and a total of 22 branches in the Sudan. Paid Up Capital is SD4.974 million.

The Year in Brief

Total revenues for the year after deduction of unrestricted investment holders share were 12% higher at SD1.01 billion (US$3.95 million), (1998: SD905 million). Total expenditure increased by 19% to SD665 million (1998: SD557 million). Ratio of Expense to Total Revenues was 65.7% (1998: 61.45%) Total Profit was marginally lower, at SD348 million (1998: SD 349 million). Shareholders Equity increased by 2.10% to SD1.498 billion (1998: SD1.467 billion. Capital adequacy ratio was 15% by year-end against a local minimum requirement of 8%. Total Assets grew by 275% from SD 30.3 billion in 1998 to SD83.5 billion by year-end 1999.

Business Highlights

Within Sudan, the economy grew by 6% during the year, exceeding the average growth rate for African and Underdeveloped countries. Contribution from productive sectors reached 65.6%, that of service sectors was 34.4%. After many years of depreciation, the Sudanese Dinar maintained a stable value v. the US Dollar. Average inflation was 16% (1998: 18%)

Total executed investment operations totalled SD1.4 billion, comprising Musharakat SD551 million, Murabahat SD740 million and others SD96 million. These financings were distributed to industrial sectors:

Associated Companies Name Incorp Equity % Net Profit Tadamon Real Estate Company Sudan 99% SD!.597 m Tadamon Trading Company Sudan 99% SD0.715 m Tadamon Agriculture Company Sudan 99% SD0.065 m

Total foreign currency returns were US$2.2 million, of which US$1.4 million were from overseas investment deposits and US$0.781 million were from local Murabaha operations. Return from banking services continued to be good, increasing by 22% toSD503 million (1998: SD411 million).

An advanced electronic net system was introduced during the year, linking head office with all branches. The next stage is to link branches to one another, and to the clearing department in the central bank. The Bank plans to join SWIFT in June 2000. Additionally, automation in the Shares section of the Financial Affairs Department now allows the automated insertion and classification of shareholders and transfers via the Khartoum Stock Exchange.

Training sessions were held throughout the year for some 207 employees, with an additional number receiving training at foreign correspondent banks. The branch network was enhanced by the construction of a new building for Ommdurman Branch and the construction of Kosti Branch. The Bank takes its social role most seriously, and continued the provision of research material to students and researchers, the publication of monthly and annual journals and the participation in a number of conferences.