ABK announces net profit growth of 19% in 2022: Kuwait

Al Ahli Bank of Kuwait (ABK) reported a net profit of KD 32.3 million in the financial year 2022. The increase in the net profit compared to the same period in 2021 was 19%. Net operating profit rose by 10% to a total KD 90.1 million, and earnings per share were 14 fils, compared to 12 fils the previous year. Total assets grew by 14% to KD 6.4 billion, customer deposits by 13% to KD 4.4 billion, and the loan portfolio increased by 19% to reach KD 4.04 billion. The Non-Performing Loan (NPL) ratio stood at 1.43% and NPL coverage was at 366%. The Capital Adequacy Ratio (CAR) reached 15.62% while the Shareholders’ Equity stood at KD 504 Million. The Board of Directors has recommend the distribution of 8fils per share as cash dividends to shareholders, in addition to distributing 5% bonus shares. These proposed distributions are subject to the approval of the ABK Annual General Meeting. Commenting on the results, Mr. Talal Behbehani, Group Chairman of Al Ahli Bank of Kuwait, said, “The financial performance refl ects the Group’s long-term plan, centered on customeroriented products, investing in its employees, and boost the Bank’s share in the market while adhering to prudent risk management practices and enhancing the share of Al Ahli Bank of Kuwait in the local and regional markets.” “In addition, the Group also maintained strong credit ratings, “A” Rating by Fitch Credit Rating Agency with a Stable Outlook, and “A2” Rating by Moody’s with a Stable Outlook. Further, Al Ahli Bank of Kuwait was also awarded a ‘Category 1 Banking License’ by the Dubai Financial Services Authority (DFSA), a license upgrade,which allows ABK-DIFC to provide customers with a vast portfolio of wholesale banking services from the Dubai International Financial Centre (DIFC) Branch, including accepting deposits from corporates, financial institutions and high net worth individuals”. Mr. Behbehani also expressed his appreciation for the executive team’s foresight and planning and to all staff for their dedication in working diligently to apply the standards of sustainability, good governance and social responsibility contributing wholly to the healthy growth of the balance sheet, profitability and strong credit ratings. Mr. George Richani, Group Chief Executive Officer of Al Ahli Bank of Kuwait, reiterated that: “At Al Ahli Bank of Kuwait, we were able to succeed in increasing operating profits by a noteworthy rate in Kuwait. This growth was driven by the full transformation strategy of all our business lines and operations.” Mr. George Richani, further stated that: Customer experience is one of the priorities of Al Ahli Bank of Kuwait’s strategy, in addition to focusing on maximizing the value of operations and diversifying its sectors in addition to expanding in the main markets, enhancing risk management capabilities and innovation to achieve excellence in customer service. He further highlighted the successful closing of a USD 825 million Term Loan Facility, securing one of the largest financing related to a Kuwaiti financial institution. This facility is the largest in ABK’s history and will enable ABK to continue growing, expanding its business, and strengthening its relationships and is evidence of the trust worldwide investors have in ABK, its strategy, and future outlook. Mr. Richani also highlighted the Group’s approach based on prudent policies and studied future expectations regarding growth, as the Bank is taking great strides towards digital transformation and following up with market needs, while recording steady growth on the financial level and reinforcing the aspirations of all the Bank’s shareholders and customers alike. Corporate Social Responsibility ABK has been striving to fulfil its commitment to society. The year 2022 saw the Bank engage itself actively on a variety of Corporate Social Responsibility (CSR) initiatives, especially those targeted at the development of the youth in Kuwait. As nationalization of manpower is key to the future of Kuwait and the nation’s youth, ABK has always stood out as one of the leading employers of choice for Kuwaiti nationals, and continues to demonstrate its commitment to human capital and national employment by participating in numerous university career fairs. The Bank recently held a recruitment initiative in collaboration with the Public Authority of Manpower, providing job seekers with information about the banking sector and ABK specifically. The initiative was aimed at encouraging Kuwaitis to join the private sector. ABK continues to support the Central Bank of Kuwait and Kuwait Banking Association’s joint awareness campaign, ‘Let’s Be Aware,’ to raise financial literacy awareness and ensure safe banking practices. To fulfil the campaign’s objectives, ABK partnered with private and government entities and various industry leaders which placed the Bank among the top performers for the campaign. Meanwhile, ABK Group has made significant progress in terms of sustainability, and recently released its own 2021 Sustainability Report titled ‘Banking on a Sustainable Journey’. The report highlights several important initiatives undertaken by the Group, such as increasing nationalization by 5%, focusing on empowering women and youth, reducing emissions by 23%, and funding two major ESG projects that were successfully completed. As a further step towards ‘Simpler Banking’ solutions, ABK launched a new Visa Infinite Privilege credit card for its Private Banking customers and also introduced new features to its salary transfer offering. 2022 was also exceptional with the celebration of the 20 years of the Bank’s strategic partnership with Emirates Skywards, the award-winning loyalty program of Emirates Skywards, and Flydubai, and the co-branded ABK Emirates credit cards. ABK has been implementing strategies to create stronger leaders for the future like the recently concluded first phase of the Executive Leadership Program. It included an array of both digital learning modules and various workshops. Through this program, ABK seeks to lift potential leaders to higher levels, offering them an opportunity to improve their leadership skills and realize their full potential. © 2022 Arab Times Kuwait English Daily. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

ABK announces net profit growth of 19% in 2022: Kuwait

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