ShareKUWAIT: Al-Ahli Bank of Kuwait (ABK) proudly announced its robust 9-month 2024 financial results, once again affirming its position as a leading financial institution.
Financial performance
ABK reported a Net Profit of KD 38.83 million, representing a 19 percent increase and an increase in Earnings per Share (EPS) of 23 percent to 16 fils. Operating Income increased by 11 percent to KD 150.81 million while operating profit witnessed an increase of 13 percent, reaching KD 80.58 million, reflecting the bank’s strong profitability and shareholder value creation.
Total assets reached KD 7.08 billion while maintaining steady growth in loans and advances amounting to KD 4.56 billion, with customer deposits at KD 4.33 billion, affirming the Group’s reputation as a trusted financial partner. Moreover, the bank’s non-performing loan (NPL) ratio stood at 1.30 percent, with NPL coverage at 467 percent, capital adequacy ratio (CAR) at 17.01 percent, and shareholders’ equity at KD 611.26 million, further underscoring ABK’s financial stability, healthy financial position, and robust balance sheet.
Continued success
On this occasion, Talal Mohamed Reza Behbehani, Chairman of ABK, said, “Our 9-month financial results demonstrate the effectiveness of our strategic plans, which the Board of Directors and Executive Management are dedicated to implementing according to a well-defined timeline. These results affirm our capability to navigate economic challenges at local, regional, and global levels, as well as our commitment to deliver added value to all our stakeholders, including shareholders, clients, and partners.”
He reported that ABK has continued to experience growth in most of its financial indicators since the beginning of 2024. The Group remains committed to adhering to regulatory requirements set forth by the Central Bank of Kuwait, the Capital Markets Authority, and other regulatory bodies, as well as Basel III standards. Furthermore, he emphasized ABK’s dedication to strengthening its liquidity and enhancing its capacity to serve all sectors efficiently.
Behbehani stated, “The first nine months of this year have seen several noteworthy transactions. Among the most significant was the successful $300 million Additional Tier 1 (AT1) bond offering. This issuance experienced robust demand, being oversubscribed 4.5 times by local, regional, and global investors, reflecting the strong confidence the Group has garnered in financial circles.” He affirmed the Group’s strive to capitalize on the best opportunities to enhance its liquidity and achieve its goals.
Behbehani also highlighted that ABK signed an agreement this year to renew credit facilities worth $250 million for Daewoo Engineering and Construction. This underscores the Group’s commitment to supporting and financing its clients, as well as its efforts to meet the needs of foreign companies operating in the Kuwaiti market through tailored financing solutions and facilitation of their logistical operations.
Credit ratings and awards
The Chairman noted that ABK has sustained its high ratings with a stable outlook from global credit rating agencies, receiving an A rating from Fitch and an A2 from Moody’s. He regarded these as a testament to the financial stability of the Group and its ability to instill trust as a reliable banking and financial partner both in the Kuwaiti market and the regional markets it operates in, such as the United Arab Emirates (UAE) and Egypt. Additionally, these ratings signify the substantial confidence expressed by global institutions that specialize in performance evaluation.
Behbehani added that ABK successfully received several awards from reputable entities, such as Global Finance, MEED, and International Finance, among others. This recognition comes after the Bank met the requirement performance evaluation criteria in various areas, including Retail Banking, Corporate Banking, Human Resources, Digital Transformation and Innovation, and Investor Relations. These achievements reflect ABK employees’ outstanding performance and dedication to continuous improvement and enhancing their capabilities and productivity.
A new strategy
Behbehani announced that ABK continues to implement its five-year strategy which is aimed at enhancing its operational processes, with a strong emphasis on digital transformation. This commitment is reflected in the launch of the Bank’s new website, designed to provide customers with a comprehensive banking experience. Additionally, ABK is focused on enhancing its mobile application to deliver added value, ensuring users receive services around the clock while maintaining the highest levels of security. The Chairman conveyed his heartfelt gratitude and appreciation to the Central Bank of Kuwait for its vital role in fostering confidence in the banking sector’s stability and strength, as well as its significant contributions to economic activity in Kuwait. He also commended the dedication of the Executive Management and all employees for their roles in achieving the Group’s financial objectives, highlighting ABK’s endeavor to continue to develop its offerings to the highest levels.
Clear vision
On his part, Abdulla Al-Sumait, Acting Group Chief Executive Officer at ABK, said, “We are committed to achieving sustainable growth in the Bank’s profits while adhering to the strategic framework set by our Board of Directors and Executive Management. Our focus is on building customer trust within the banking sector in Kuwait, as well as expanding our operations in the UAE and Egypt. We aim to provide the best banking and financial solutions, products, and services to meet our customers’ needs.”
He added that ABK is dedicated to continuously improving its systems to ensure customer satisfaction and build trust by providing the highest levels of security across all services. He noted that the Group emphasizes the adoption of advanced digital technologies in partnership with leading and specialized companies in the field. Al-Sumait mentioned that ABK consistently introduces new and exclusive offers, along with promotional campaigns, to attract customers to its expanding family. He highlighted that in the first nine months of 2024, the Bank launched several new accounts and promotional initiatives tailored to various customer segments in the local market. Additionally, he revealed that ongoing studies are being conducted to better understand customer needs, allowing the Bank to innovate new solutions that enhance its competitive position across all sectors.
He announced that ABK is actively progressing with its branch development plan across various regions of Kuwait. This initiative involves modernizing branches with contemporary designs and advanced digital technologies, aiming to enhance customer comfort and deliver seamless service. He noted that in the first nine months of 2024, the Bank completed the renovation of the Jabriya branch and relocated to a new branch in Salmiya. Additionally, there has been an increase in the number of ATMs at key locations to ensure ongoing service for customers in the local market.
Al-Sumait emphasized the bank’s ongoing effort to attract top talents and skills across various divisions. Notably, ABK organizes numerous training programs to enhance employees’ capabilities and skills. This initiative aims to address their needs and improve the benefits they receive, ultimately boosting productivity and fostering innovation in banking services and solutions. This commitment aligns with the Bank’s dedication to providing a positive work environment.
Egypt and the UAE
Al-Sumait highlighted that ABK’s operations in the UAE and Egypt play a significant role in its financial results. He noted the emphasis on strengthening its presence in these markets, which is reflected in the high-quality financial services provided to both individual and corporate clients in the UAE.
Meanwhile, ABK-Egypt is dedicated to excellence in servicing its clients and aims for planned expansion. This includes opening new branches and renovating existing ones across all Egyptian governorates, as well as offering advanced digital technologies and incentives to effectively reach and serve various customer segments.
Social responsibility
He stated that the Group remains committed to continuously developing its social responsibility programs. This involves participating in, sponsoring, and supporting a wide array of health, sports, and educational initiatives throughout the year, in collaboration with various institutions and organizations from both public and private sectors. These efforts significantly enhance ABK’s presence in the Kuwaiti community, reinforcing its role as a responsible institution in the market.
Concluding his statement, Al-Sumait emphasized the ongoing support for the ‘Let’s Be Aware’ awareness campaign, which is a collaboration with the Central Bank of Kuwait and the Kuwaiti Banking Association. The campaign aims to educate customers about the banking sector’s role in safeguarding their rights. To achieve this, the Bank distributes targeted awareness content across its social media platforms, within its branches, and on its website. Additionally, various events and competitions are organized to engage all customer segments in the market.
