Operating profit reaches KD 53.7m, total assets soar to KD 4.73bn in H1 2019
KUWAIT: Maintaining its growth momentum, Al-Ahli Bank of Kuwait (ABK) recorded strong results for the first six months of 2019 with an increased net profit of 18 per cent to reach KD 22.6 million. Operating profit for the same period grew four per cent to reach KD 53.7 million and total assets also increased by 4 per cent to reach KD 4.73 billion. Earnings per share remained stable at 12 fils due to the AT-1 cost impact. Asset quality remained solid with the non-performing loan (NPL) ratio at 1.96 per cent, and NPL coverage at 318 per cent. Shareholders' Equity was KD 591.1 million and Capital Adequacy Ratio stood at 18.73 per cent.
Commenting on the results, Talal Mohammed Reza Behbehani, Chairman of ABK, said: "ABK has once again delivered solid results, with steady funding and solid capital ratios. As our growth momentum continues, we are well positioned to successfully execute our strategic priorities and deliver sustained long-term shareholder value."
Michel Accad, Group Chief Executive Officer at ABK stated, "Our continued growth is testament to our balanced and healthy lending portfolio, which is complemented by pioneering technology in all operational areas. Digitization has been a strategic priority for ABK, and we are now developing an omni-channel distribution model that provides customers with simpler, streamlined and personalized services across our delivery channels. This focus ensures that ABK's digital transformation will be comprehensive and will have a direct positive impact on customers."
In line with its 'simpler banking' strategy, ABK has introduced a series of innovative digital banking services in 2019 through its mobile app. These services include: 'ABKPay', a service that allows customers to split bill payments or transfer money to their ABK account from other local bank accounts; 'Global View'', which enables customers to manage multiple ABK accounts through a single login point; and eServices, where customers can instantly open a savings or term deposit account online without visiting a branch.
Notably, ABK was recognized by The Banker as the Middle East's winner of 'Deal of the Year' in 2018 for their landmark financing facility arranged last year with Dubai Aerospace Enterprise (DAE), which was for $800 million. The Bank was also ranked No 2 in The Bankers ' Movers' in the Middle East list and no 1 in Capital Adequacy Ratio in Kuwait. ABK has been listed by Global Finance in the top ten safest banks in the Middle East. Group CEO, Michel Accad was also recently recognized by Euromoney for his "Outstanding Contribution to the Financial Services Industry in the Middle East.
Recently, ABK led the ALAFCO $470 million, 5-year unsecured Murabaha Facility, underscoring the banks capability in leading and arranging syndications in the regional structured loan market.