- Total assets grew by 24%
- 16% increase in financing portfolio
- 16% growth in financing income
- 7% cash dividends and 5% bonus shares proposed for 2019
- 11% growth in Depositors’ Accounts
- Average annualized rate for KIB Term Deposit KD stood at 3.5% in 2019
- Annualized return in Q4 2019 on Long Term KD deposits (3 years) were offered at 3.7%
- Al Ithmaar Call Account recorded an average annual return of 1.75%
- Highest return in the market – Savings Investment Account
- Profits were credited to depositors' accounts upon announcement of results
- Fitch Ratings affirmed Bank’s LT-IDR at “A+” with a Stable Outlook
- $300 Million AT1 Sukuk issued in 2019 enhancing CAR
- KIB received a number of prestigious local, regional, and international awards
Chairman of Kuwait International Bank (KIB), Sheikh Mohammed Jarrah Al-Sabah, announced that the Bank recorded a net profit of KD 17 million for the year ended 31 December 2019. Meanwhile, earnings per share (EPS) reached 15.01 fils while registering total operating income of around KD 69 million.
Al-Jarrah also noted that KIB’s total assets grew by KD 0.52 billion or 24% in 2019 to reach KD 2.69 billion compared to KD 2.17 billion in 2018. This increase was a result of a growth in KIB’s financing portfolio by KD 260 million to reach KD 1.87 billion compared to KD 1.61 billion at the end of 2018, achieving a growth of 16% as well as growth in investment protfolio by KD 74 million to reach KD 180 million compared to KD 106 million in 2018, achieving a growth of 70% due to increased exposure to high quality Sukuk.
Al-Jarrah added that revenue from financing income also increased by KD 14 million to reach KD 103 million, or a 16% increase compared to 2018. Additionally, the investment income increased by KD 2.5 million, or 160%, reaching KD 4.1 million compared to KD 1.6 million during the previous year.
Moreover, Al-Jarrah stated that KIB’s Board of Directors proposed payment of cash dividends of 7% of the nominal value of shares (7 fils per share) and 5% bonus shares from issued and paid up capital (5 shares for every 100 shares), subject to the approval of the Bank shareholders’ general assembly and regulatory authorities.
Depositors’ accounts increased by KD 151 million or 11% to reach KD 1.47 billion, compared to KD 1.32 billion recorded for last year.
In 2019, Depositors’ Accounts witnessed a strong growth. Annualized return on KIB Term Deposit (KD) was 3.5% and Long Term (KD) three-year deposits was 3.7%. Similary, KIB’s Ithmaar Call Account offered an average annual rate of return of 1.75% at the end of 2019. This unique account offers corporate customers instant access to funds through unlimited deposits and withdrawals, and provides an opportunity for companies to earn a profit on the account balance. Businesses are able to enjoy greater flexibility, better returns and unrestricted access to funds at the same time with a cheque book option.
Moreover, the Saving Investment Account in Kuwaiti Dinars continue to yield the highest return in the market, at a net annualized return of 2.1% in 2019. With this account, individuals can enjoy both benefits of savings and investment. Opened in Kuwaiti Dinars or in any other major foreign currency, the Saving Investment Account does not require a minimum amount to open and profit distribution takes place on a quarterly basis.
Profits were credited to depositors’ accounts upon announcement of financial results.
Al-Jarrah stated: “We continue on our growth trajectory, delivering high-quality products and services that push boundaries admist a highly competitive market. Our financial performance bears testament to the vision of our strategic direction, leveraging the latest innovations to better serve our customers and adopting digital solutions that deliver on our slogan’s promise of being a ‘Bank for Life’.”
In 2019, global credit rating agency Fitch Ratings affirmed KIB’s Long Term Issuer Default Rating (LT-IDR) at “A+” with a Stable Outlook. Fitch also affirmed the Bank’s Viability Rating (VR) at “bb-“.
Commenting on the results, Vice Chairman and Chief Executive Officer of KIB, Raed Jawad Bukhamseen, said: “KIB continues to enjoy a stable operating environment in Kuwait. Our latest credit rating reflects our exceptional standing, the strength of our strategic direction and our reputation in the market.”
Bukhamseen added that KIB had issued a $300 million Additional Tier 1 (AT1) Sukuk during Q2 2019, reflected in the high Capital Adequacy Ratio of 19.24% and financial leverage ratio of 11.79% as at 31 December 2019. NSFR was maintaned at 107.49%.
As a testament to its continued efforts in 2019, KIB garnered a number of prestigious local, regional, and international awards that reflected its stellar performance and achievements across various areas and sectors.
KIB was awarded the ‘Best Sharia Compliant Bank - MENA 2018’ for the fourth consecutive year by Capital Finance International (CFI.co), ‘Best Islamic Bank GCC 2018’ by World Finance for the third consecutive year, as well as the ‘Deal of the Year 2018’ award from Islamic Finance News (IFN), for its syndicated Murabaha financing of $250 million. Moreover, KIB renewed its ISO 27001:2013 certification for information security management systems until 2022.
KIB also received the debut ‘GCC Best CSR Business Model’ award by World Finance, honoring leading financial and investment institution in the GCC. Additionally, the Bank received the ‘Best CSR Initiative – Arab Banking’ award by The Banking Executive Magazine in recognition of its efforts in improving financial literacy and addressing various challenges in order to improve people’s standards of living.
Bukhamseen pointed out that, as a result of its current strategy, KIB continues to grow year after year. The Bank also aims at improving its customer service as well as meeting the changing needs of its customers by adopting the latest digital solutions that are easily accessible at any time and place. He noted that this growth will help KIB in achieving its strategic objectives, cementing its long-standing position as a leading Islamic Bank, building its trust and reputation on its proven track record, as well as its many growth opportunities.
Kuwait International Bank (KIB) is a bank that operates according to the Islamic Shari’ah, based in the State of Kuwait. Incorporated in 1973, and originally known as Kuwait Real Estate Bank, KIB made the transition to its current Islamic operating model in 2007.
KIB is a full service Bank operating through a network of branches spread across the State of Kuwait, and offering a broad range of banking products, services and solutions in accordance with the principles of the Islamic Shari’ah. The Bank’s mission and vision also encompasses a leading social responsibility program that aims at supporting every member of Kuwait’s society by spearheading a multitude of initiatives and activities.
In 2015, KIB embarked on a comprehensive strategic plan, aimed at improving the Bank’s performance indicators, as well as enhancing the quality of its products and services. The strategy focuses on propelling the Bank to the forefront of the Kuwaiti banking sector and setting it on a solid path to becoming the “Islamic Bank of Choice” in the market.
Today, KIB is in the midst of its new strategic transformation: a comprehensive and long-term program which is aimed at transforming the way KIB engages with customers across every touch point and communication channel. This new strategy focuses on offering a next-level customer experience that delivers much more than just “banking” in the traditional sense - but rather establishes KIB as a partner in every aspect of its customers’ lives; a true “bank for life”.© Press Release 2020
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