ShareKUWAIT: Al-Ahli Bank of Kuwait (ABK) proudly announced its robust financial results for H1 2024, once again affirming its position as a leading financial institution.
Financial performance
ABK reported a net profit of KD 29.06 million, representing a 22 percent increase and an increase in earnings per share (EPS) of 20 percent to 12 fils. Operating income increased by 15 percent to KD 100.94 million while operating profit witnessed an increase of 21 percent, reaching KD 53.57 million, reflecting the bank’s strong profitability and shareholder value creation.
Total assets reached KD 6.64 billion while maintaining steady growth in loans and advances amounting to KD 4.5 billion, with customer deposits at KD 3.97 billion, affirming the Group’s reputation as a trusted financial partner. Moreover, the bank’s non-performing loan (NPL) ratio stood at 1.31 percent, with NPL coverage at 447 percent, capital adequacy ratio (CAR) at 15.3 percent, and shareholders’ equity at KD 607 million, further underscoring ABK’s financial stability, healthy financial position, and robust balance sheet.
Solid plans
Commenting on this achievement, Talal Behbehani, Chairman of ABK, stated, “The growth that the Group has witnessed in financial indicators during H1 2024 demonstrates our success in developing appropriate plans that keep pace with the continuous changes in the Kuwaiti, regional, and global economies. It also highlights our strong financial market position in addition to our commitment to preserving shareholders’ rights and consistently providing them with added value.”
He reiterated that ABK is fully prepared to contribute to financing upcoming large developmental projects in Kuwait in the near future. The chairman expressed confidence that the partnership between the public and private sectors in implementing Kuwait Vision 2035 as envisaged would elevate economic activity and contribute to transforming Kuwait into a regional and global commercial and financial center.
Behbehani emphasized the adoption of the highest standards of governance and transparency in dealing with all stakeholders and shareholders in ABK, indicating that the Board of Directors and Executive Management consistently work on implementing plans and operations in a timely manner to provide the best returns and maintain trust.
He also revealed that, during H1 2024, the Board of Directors approved the new environmental, social, and governance (ESG) and sustainability 5-year strategy, aimed at elevating the Group’s successes and achievements across all sectors. Furthermore, Behbehani stated that ABK continues to work on its digital transformation plan and adopts the highest security standards in all divisions. This includes signing agreements for utilizing artificial intelligence (AI) technologies, enhancing performance and services, and innovating more banking solutions to assist customers in executing their financial transactions in the simplest and most secure ways.
Behbehani added, “We are pleased to have maintained our high ratings with a stable outlook by global credit rating agencies, with an A rating from Fitch and an A2 from Moody’s.” He affirmed that these confirm the Group’s financial stability and its ability to earn trust as a reliable banking and financial partner in both the Kuwaiti and regional markets it operates in, namely in the United Arab Emirates and Egypt. He emphasized, “These ratings reflect the high confidence we enjoy thanks to our innovative financial products and services that are widely popular in the market.”
Committed to innovation
On his part, Abdulla Al-Sumait, Acting Group Chief Executive Officer at ABK, said, “We have once again succeeded in maintaining our growth by consistently introducing worthwhile banking products, services, and solutions that meet individual and corporate customers’ ever-evolving needs.” This is in addition to ABK’s participation in several financial deals, confirming the trust that the Group enjoys from global companies.
New campaigns
H1 2024 witnessed the launch of several new campaigns, reflecting ABK’s commitment to offering customers exclusive benefits as a token of appreciation for their trust. Some examples include the launch of Al-Tajer Plus to assist small and medium-sized enterprises (SMEs) in growing their businesses and increasing their profitability. Another great success is the recent summer campaign, providing cardholders with exceptional benefits and discounts. In addition, the UAE mortgage loan was introduced, allowing customers to acquire financing for property purchases as part of ABK’s continuous efforts to integrate operations across the region.
This comes alongside the debut of the first-of-its-kind Family Banking package in the Kuwaiti banking sector, aimed at providing comprehensive banking services to all family members. Al-Sumait stated, “The upcoming period will involve the launch of even more promotional campaigns to attract customers and establish additional partnerships that provide exclusive benefits and rewards to all segments. This is all in an effort to contribute to further elevating ABK’s position in the market.”
Awards
These efforts have not gone unnoticed where Al-Sumait highlighted that the Group received numerous reputable international awards during H1 2024. He said, “These accolades have acknowledged ABK’s outstanding performance, provision of the best banking services, products, and solutions to customers, and adherence to the highest standards in the banking industry.” The most recent of which was ABK’s notable wins at the MENA Banking Excellence Awards 2024 for Excellence in Customer Protection/Fraud Control (Kuwait), recognizing the Bank’s unwavering commitment to safeguarding its customers’ interests and maintaining robust fraud control measures.
The second was Best Retail Bank – Egypt award, acknowledging ABK’s unparalleled dedication to providing top-notch retail banking services and solutions in Egypt. Furthermore, ABK received JP Morgan’s Elite Quality Recognition award alongside international accreditation from the Chartered Institute of Procurement and Supply (CIPS). This is in addition to ABK’s subsidiary, ABK Capital, being awarded Most Innovative Multi-Asset Fund Management Company from International Finance.
Widespread presence
Al-Sumait added that the Group also participated in global events and conferences during H1 2024, such as the Global Digital Banking Conference as well as the Visa Payments Forum, and the Dubai FinTech Summit. He stated, “This provided the opportunity to stay abreast of the latest developments in payment technologies as well as the global banking industry to deliver the same standard to customers across all the markets we operate in.” This effort falls in line with ABK’s consistent endeavor to achieve financial inclusion in the communities it serves.
In this spirit, ABK was keen on enhancing its community presence by sponsoring various events, such as Amiri Hospital’s Eighth Medical Scientific Day and the final football match of HH the Amir, as well as several job fairs. ABK also continues to support the Central Bank of Kuwait and the Kuwait Banking Association’s ‘Let’s Be Aware’ banking awareness campaign. This includes spreading financial awareness about various banking services and solutions, providing tips on how to combat financial fraud, and informing customers of their rights and responsibilities when dealing with banks.
Al-Sumait concluded his statement stating, “I would like to express my appreciation to our customers for their unwavering loyalty and trust. I also commend the efforts of all our employees and encourage them to continue their pursuit of excellence that allows us to maintain our position as a leading bank in the sector.”
