Growth in Kuwait KIBs financing portfolio drives assets up 24% chairman

Kuwait - The assets of KIB grew by KWD 520 million or 24% on an annual basis to reach KWD 2.69 billion in the fiscal year ended 31 December 2019 from KWD 2.17 billion.

The increase in assets was backed by growth in its financing portfolio by KWD 260 million or 16% to KWD 1.87 billion last year from KWD 1.61 billion in 2018, the bank’s chairman, Sheikh Mohammed Jarrah Al Sabah, stated in a recent press release.

In the meantime, the bank’s investment portfolio posted a significant annual rise of 70% or KWD 74 million in 2019 to stand at KWD 180 million, compared to KWD 106 million, backed by the increased exposure to high-quality sukuk.

Revenue from financing income, moreover, soared by KWD 14 million or 16% on an annual basis in 2019 to KWD 103 million. Similarly, the investment income remarkably increased by 160% or KWD 2.5 million last year, recording KWD 4.1 million when compared to KWD 1.6 million.

KIB saw an 11% or KWD 151 million annual growth in depositors’ accounts to KWD 1.47 billion in the fiscal year ended 31 December 2019 when compared to KWD 1.32 billion.

Commenting on the results, vice chairman and CEO 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.”

The CEO further revealed that KIB achieved a higher Capital Adequacy Ratio (CAR) by 19.24% and a financial leverage ratio of 11.79% last year, driven by the $300 million Additional Tier 1 (AT1) sukuk it issued over the second quarter (Q2) of 2019, adding that the Net Stable Funding Ratio (NSFR) was maintained at 107.49%.

It is worthy to highlight that in 2019, KIB’s annual profits amounted to KWD 17.15 million ($56.56 million), down by 17.9% from KWD 20.89 million ($68.9 million) in 2018.