Sunday 26 March 2023

Talal Behbehani

Kuwait’s ABK net profit rises 19% to $106.21m in 2022

KUWAIT CITY, February 5, 2023

Al Ahli Bank of Kuwait (ABK) has seen net profit rise 19% to KD32.3 million ($106.21 million) for the financial year 2022 driven by a full transformation strategy of all its business lines and operations. 
Net operating profit rose by 10% to a total KD90.1 million, and earnings per share were 14 fils, compared to 12 fils the previous year. Total assets grew by 14% to KD6.4 billion, customer deposits by 13% to KD4.4 billion, and the loan portfolio increased by 19% to reach KD4.04 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 KD504 Million.
Cash dividends
The Board of Directors has recommend the distribution of 8 fils 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, Talal Behbehani, Group Chairman of ABK, said: “The financial performance reflects the group’s long-term plan, centered on customer-oriented 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 ABK 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, ABK was also awarded a ‘Category 1 Banking Licence’ by the Dubai Financial Services Authority (DFSA), a licence 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.”
George Richani, Group Chief Executive Officer of ABK, said: “At ABK, 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.”
Customer experience
He said: Customer experience is one of the priorities of ABK’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 pointed out the successful closing of a $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.  
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.
As nationalisation 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.
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 nationalisation by 5%, focusing on empowering women and youth, reducing emissions by 23%, and funding two major ESG projects that were successfully completed.-- TradeArabia News Service


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