ABK Group reports KD 32.6 million net profit for first 9 months of 2023

KUWAIT: Al-Ahli Bank of Kuwait (ABK) is pleased to announce strong financial results for the nine-month period ended Sept 30, 2023. The Bank has demonstrated exceptional performance, reflecting its resilience and commitment to customers and stakeholders.

 

19% profit increase demonstrates ABK’s ability to deliver sustained growth.

Net profit reached KD 32.6 million, a 19 percent increase compared to the previous year, demonstrating ABK’s ability to navigate through the economic conditions and deliver sustained growth.

Earnings per share (EPS) rose to 13 fils, reflecting the Bank’s strong profitability and shareholder value creation. Operating profit was reported at KD 71.2 million. Total assets stood at KD 6.3 billion indicating ABK’s healthy financial position and robust balance sheet.

ABK maintained a steady growth in Loans and Advances, which reached KD 4.3 billion with customer deposits at KD 3.9 billion, a testament to the Bank’s reputation as a trusted financial partner. Meanwhile, the non-performing loan (NPL) ratio stood at 1.34 percent, NPL coverage at 420 percent, capital adequacy ratio (CAR) at 14.67 percent, and shareholders’ equity at KD 602.8 million.

Expressing his satisfaction with the bank’s financial performance, Talal Behbehani, Chairman of ABK, said, “These results demonstrate ABK’s prudent risk management practice, customer-centric approach, and commitment to delivering value to its stakeholders. We remain steadfast in our focus to achieve sustainable growth and our continued investment in technology and innovation, both of which have driven our success.”

The chairman continued, “We will continue to adapt to the changing market conditions, seize opportunities, and build on our strong foundation to ensure value creation for our stakeholders. Together with our dedicated employees and esteemed customers, we are confident in our ability to navigate the path ahead and contribute to the economic development of Kuwait and the markets we operate in.” Behbehani affirmed that “ABK’s financial results reflect our disciplined approach to credit management and capital allocation. We have focused on optimizing our balance sheet, managing costs, and maintaining a strong liquidity position, enabling us to deliver these outcomes.”

Capital increase and strategic focus

ABK recently announced the successful completion of its capital increase, offering 500 million shares valued at KD 100 million. The demand exceeded the targeted value by 331 percent to reach KD 331.37 million and the Bank’s paid-up capital increased by 26.7 percent to reach KD 237.4 million.

Abdulla Al-Sumait, Acting Group Chief Executive Officer emphasized the Group’s strategic focus, stating, “At ABK, we believe that our success lies in understanding and meeting the evolving needs of our customers. We remain committed to providing innovating financial solutions, personalized service, and a seamless banking experience. Our ongoing investments in digital transformation and our dedicated team of professionals will enable us to consistently exceed expectations and maintain our position as a leading financial institution.”

Having maintained its investment grade credit ratings by Moody’s (A2) and Fitch (A), Al-Sumait said, “These demonstrate our robust financial standing which continues to contribute to our reputation within the financial industry.” He added that these credit ratings allow ABK to foster trust and confidence among stakeholders, and attract a diverse range of customers and investors. “We are well-equipped to navigate market challenges, seize growth opportunities, and deliver sustainable value to our shareholders.”

Cross-border offerings

As a forward-thinking institution, ABK recognizes the vast potential that lays in its reach beyond the borders of Kuwait. Commenting on this, Al-Sumait said, “Our operations in Egypt and the UAE have provided us with unique growth opportunities, allowing us to tap into new customer segments and expand our product offerings. As such, we use every opportunity to capitalize on strengthening our presence in both markets to diversify our revenue streams and create long-term value for our stakeholders.”

He clarified that the success achieved in these countries underscores ABK’s ability to adapt to diverse business environments, leverage local knowledge and deliver tailored financial solutions. He continued, “Our presence in Egypt and the UAE has not only enhanced our profitability but also further solidified ABK’s position as a trusted regional bank.”

ESG and CSR

ABK acknowledges that initiatives focusing on environmental sustainability and ethical business practices can result in cost savings and operational efficiencies. Al-Sumait stated, “By proactively addressing social and environmental issues, we are more likely to attract and retain top talent, leading to increased productivity and innovation. We are also very aware of the fact that stakeholders, including investors and shareholders, are increasingly considering our efforts in this respect when making investment decisions.”

He added that women empowerment remains a crucial priority for ABK, stating that it is not just a moral imperative, but a strategic advantage. The Acting Group Chief Executive Officer elaborated, “As we embrace the principles of ESG, we recognize that gender equality is vital for driving innovation, enhancing decision-making, and fostering a more inclusive and robust work culture.”

Al-Sumait proceeded to highlight the significant impact CSR initiatives have on a company’s financial results. He said, “By engaging in socially responsible practices, we endeavor to build trust and goodwill among customers, investors, and the community.” The Group CEO elaborated that it leads to enhanced brand reputation and loyalty, which in turn drives customer acquisition and retention.

Furthermore, he mentioned that integrating CSR into ABK’s business strategy has not only resulted in societal benefits, but has also positively contributed to the Group’s bottom line. ABK also continues to support the ‘Let’s Be Aware’ banking awareness campaign. In collaboration with the Central Bank of Kuwait and Kuwait Banking Association, the goal of the campaign is to raise financial and banking awareness among customers and promote financial inclusion in society.

ABK was recognized as one of the top three contributors to the campaign’s success in 2022, as announced earlier this year. As such, ABK remains dedicated to spreading relevant information through its branches, social media platforms, and other potential opportunities.

Since its establishment in 1967, ABK has progressed to become one of the leading Kuwaiti banks in the region that offers a wide array of personal, corporate, and private banking products and services. ABK also provides a broad range of local, regional, and global investment solutions and services through its subsidiary, ABK Capital. The bank also offers individuals and corporates the convenience of comprehensive banking and financial services across the region in the Egyptian market through ABK-Egypt’s network of 44 branches.

Furthermore, in the United Arab Emirates, ABK has three branches located in Dubai, Abu Dhabi, and Dubai International Financial Centre (DIFC), servicing both Kuwaiti and Emirati individual and corporate clients.