Net profit grows 17% in 2016, with an EPS of 17.8fils
KUWAIT: Boubyan Bank achieved net profit growth rate of 17 percent, recording a net profit of KD 41 million for the year ended 31 December 2016 with an EPS of 17.8 fils compared with 16.3 fils for 2015.
The Board has recommended the distribution of cash dividends of 6 percent per nominal share value (ie, 6 fils per share) and 5 percent in bonus shares (ie, 5 shares per 100 shares).
Mahmoud Yousef Al-Fulaij, the Chairman, stated that the Bank’s profit rate growth over the past years confirms the success of the strategy set by the Bank in 2010 that placed it among the best Islamic banks in Kuwait and the region.
“Despite the economic and geopolitical circumstances surrounding the region, the Bank managed to overcome such obstacles in order to maintain the same profit growth rates achieved over the past years.”, he further added.
Al-Fulaij further thanked the shareholders and customers for their confidence in Boubyan Bank and their support over the past years where they contributed, after Allah’s Grace, to the achievement of such growth rates together with the Bank’s human resources which contributed to such success.
Growth of All Main Indicators
On the other hand, Adel Abdul Wahab Al-Majed, the Bank’s Vice Chairman and CEO, stated that all of the Bank’s key performance indicators shows that the Bank witnessed a remarkable growth during 2016, where the total assets increased to KD 3.5 billion at a growth rate of 11 percent while the operational revenues increased to reach KD 103 million at a growth rate of 13 percent in addition to the increase in customers’ deposits by 23 percent, amounting to KD 2.9 billion.
He further added that the total equity of the bank increased to KD 345 million compared with KD 318 million last year and that there was a notable increase in the financing portfolio to KD 2.5 billion with a growth rate of 16 percent in addition to the continuous growth in the bank’s customers’ base.
Al-Majed stated as well that the market share, in financing, increased to approximately 7.2 percent, while the share of the retail finance increased significantly to approximately 10.3 percent.
Capital Enhancement Sukuk
Thanks to God, during 2016, the Bank successfully issued capital enhancement sukuk locally and internationally which was oversubscribed by more than 5 times the targeted amount ($250 million), reaching $1.3 billion, which was priced at 100 percent and bearing a profit rate of 6.75 percent.
“The success of the sukuk issuance which aims at enhancing the capital base via Tier 1 capital instruments reflects the trust of local and international investors in the future of Boubyan Bank in light of the Bank’s achievements over the past years and its successes which encouraged such investors.’, Al-Majed added.
15 percent Growth Rate of Corporate Credit Portfolio
On the other hand, Al-Majed stated that the Corporate Banking Group maintained strong relationships with a number of active national companies and that the group also targets medium and large sized companies at various productive economic sectors in order to provide the best banking service.
“The Corporate Banking Group achieved an outstanding growth rate of 15 percent in the credit portfolio during 2016. This was achieved by attracting a number of operational companies known for their financial and economic creditworthiness while continuing to maintain the highest standards of credit quality, analysis and diversifying risks.”, Al-Majed stated.
Al-Majed explained that the growth rates in 2016 were achieved through diversification of financing amongst various economic sectors, while giving preference to oil, services and real estate investment sectors, maintaining the quality of assets and adhering to the highest banking security standards.
Expansion of Branches & Technology Services
On the other hand, Al-Majed stressed the continuity of the Bank’s plans to expand in the local market by opening new branches which have now reached 37 branches compared with 15 branches only 5 years ago.
He went on to add: “In line with our domestic geographical expansion to be closer to our clients, we are continuing our investment in services and e-banking products which placed us ahead of other local banks. We are doing that in order to cater for the needs of our clients.”
Al-Majed also stated that the Bank received the Best Islamic Bank in Kuwait Award from Global Finance in the field of digital banking services for the second year in a row.
He also said that winning this award was a continuity to receiving many other awards such as the Best Islamic Bank in Kuwait Award from Global Finance in light of the Bank’s achievements in 2015 such as the increase in profitability and market share.
Al-Majed went on to add: “The bank managed to establish itself as one of the best institutions in the Kuwaiti private sector in the field of customer service, evidenced by continuing to receive the first place award, for the sixth year in a row atop all Islamic Banks in customer service from Service Hero, the international consumer-driven customer satisfaction index.”
The Bank further excelled in the field of nationalization by winning the Best Private Sector Institution, for the second year in a row, in the field of manpower nationalization by the GCC,
He further stated: “This kind of awards once more reiterates our bank’s superb competitive abilities, and its ability to provide its customers with the highest levels of services and the best products customers may seek, whether they are existing customers or potential customers targeted in the Kuwaiti market.”
“Customer service has always been our recipe for success, as we have always taken into account that all our customers are special and that they deserve the best because meeting their aspirations and ambitions should be up to the level of their expectations when they chose us. In other words, by choosing us, customers should be rewarded with special care and attention,” Al-Majed concluded.