Bank posts 7.7% profit growth over 2016

Talal Mohammed Reza Behbehani

KUWAIT: Building on its positive results for the first quarter of 2017, Al-Ahli Bank of Kuwait yesterday announced a net profit of KD 16.2 million for the first half of 2017, marking a 7.7 percent growth. Operating profit reached KD 46.8 million compared to KD 44.2 million in the first half of 2016, recording a 6 percent growth. Earnings per Share (EPS) is 10 fils, compared to 9 fils in first half of 2016. Total assets as at end of June 2017 reached KD 4.33 billion up 1 percent compared to end of December 2016. Asset quality remained strong with NPL ratio at 2.52 percent and NPL coverage increasing to 293 percent from 281 percent in December 2016. Capital adequacy ratio was robust at 16.41 percent.

Commenting on the Bank's results, Chairman of Al-Ahli Bank of Kuwait, Talal Behbehani said: "Our positive performance continues to pave the way for further developments within the ABK group. We are proud to have celebrated our 50th anniversary in May, and we look forward to further building on the great history of this Bank. We are keen to maintain our management approach, which has proven successful especially in the midst of the market challenges and strong competition in the Kuwait market. I am confident moving forward and we look forward to a good year."

Michel Accad, Chief Executive Officer, said: "This year has started on a positive note, and we have continued to perform and deliver at the expected levels. Our benchmark debut issue from our recently established $1.5 billion Euro Medium-Term Note (EMTN) program was very well received from the global markets. We are implementing our Simpler Banking strategy that is the driving force for the Bank, and last but not least defining strategic opportunities that will work in favor of our expansion plans, and further solidify our presence in the Kuwait market and the region as a whole.

ABK-Egypt has delivered very strong profit and growth and continues to operate at a healthy pace. All 39 branches have now been rebranded and we are currently enhancing the customer experience and revamping the inside of the branches."

ABK was recently awarded the 'Best Retail Bank in Kuwait' for 2017 by the Asian Banker, for the second consecutive year , Best Retail Bank' from The European, 'a Thomson Reuters affiliate', 'Best Commercial Bank in Kuwait' for the second consecutive year, 'Best New Brand in Egypt' by Banker Middle East, 'Bank of the Year' by Arabian Business Magazine -highlighting the Bank's series of milestones and achievements that have been recorded throughout the past year and 'Employer of the Year' by Naseba for the second consecutive year in recognition of its substantial 'Working Culture and achievements all round'.

Financial performance summary

* Underlying operating profit of KD 46.8 million, up 6 percent

* Underlying net profit of KD 16.2 million, up 7.7 percent reflecting strategic management actions under challenging market conditions

* Underlying total shareholders' equity of KD 555 million.

* Underlying Earnings per Share (EPS) at 10 fils in H1 2017, up 11 per cent compared same period last year