Customer deposits increase by 5% to reach KD 1.2 billion

Sheikh Mohamed Jarrah Al-Sabah

KUWAIT: Kuwait International Bank (KIB) reported a net profit for the period ended 30 September 2017, amounting to KD 13.5 million, and earnings per share of 14.42 fils. In this context, Chairman of KIB, Sheikh Mohammed Jarrah Al-Sabah, said: "Since the launch of KIB's comprehensive strategic plan two years ago, the bank remains committed to its implementation, which follows a carefully-detailed growth strategy amidst the various economic and financial challenges facing the region currently."

Al-Jarrah noted that it is KIB's unwavering commitment that has led to achieving this exceptional financial performance, as the Bank witnessed a growth in the overall financing portfolio of 5 percent, which is an increase of KD 60 million to reach KD 1.3 billion, compared to KD 1.25 billion for the same period of last year. Moreover, the Bank's investment portfolio increased by 18 percent to reach KD 84 million, compared to the same period last year.

In addition, customer deposits increased by 5 percent to reach a total of KD 1.2 billion, compared to KD 1.1 billion recorded during to the same period last year, which represents a growth of KD 51 million. In accordance with the Central Bank of Kuwait's regulations concerning Basel III, KIB continued to report high levels of capital adequacy ratio, as capital adequacy ratio reached 19.8 percent. The financial leverage ratio was 10.7 percent at the end of the third quarter of 2017. Meanwhile, the annualized gross profit rate of Boushra (three years) and Arzaq Deposits in Kuwaiti Dinars increased during the third quarter of 2017 to reach 3.25 percent and 2.7 percent respectively. Additionally, the annualized net profit rate of savings account in Kuwaiti dinar offered 1.62 percent at the end of the third quarter of 2017, which is the highest return rate in Kuwait distributed by a savings account on a quarterly basis.

In a statement commenting on the Bank's latest financial results, Al-Jarrah said: "Our strategy aims at achieving an all-inclusive improvement on all levels, focusing primarily on developing our Islamic banking offerings, and the success of this strategy continues to reflect positively across all key performance indicators. Over the past few years, KIB has cemented its position as a leading national financial institution, providing cutting-edge banking solutions that meet the diverse needs of the market. Additionally, KIB has continued to actively play a role in supporting national economic growth and development, as we continue to works towards achieving our ultimate goal of becoming the 'Islamic Bank of Choice'."

Al-Jarrah added that today, the Islamic banking sector in Kuwait continues to face heavy competition. For that reason, KIB is focusing on rolling out the third phase of its strategic plan, which focuses primarily on boosting its competitive edge within the banking sector. The Bank is also dedicated to providing high-quality, progressive Sharia-compliant banking services and products through keeping up with the latest developments in the banking industry. Most recently, the Bank introduced the first-of-its-kind Visual IVR service, enabling smart phone customers to enjoy a more visual banking experience through video.

At the end of his statement, Al-Jarrah noted that within the past year KIB has garnered a number of prestigious local, regional, and international awards further enhancing to its already impressive collection of industry awards and recognitions. The most recent of these achievements include the "Best Strategic Vision in Banking" Award at the 2017 Arab Banks Awards & Commendations of Excellence ceremony, which was organized by the World Union of Arab Bankers (WUAB) in Beirut. Additionally, the Bank received the "Best Change Management - Kuwait" Award by The Banker Middle East. Most recently, KIB was awarded the 'Excellence in Development of Islamic Banking Services' award by the Union of Arab Banks (UAB) in recognition of the Bank's outstanding efforts to continuously develop its banking products and services, promote Islamic banking, serve the local community, as well as its customers.

Kuwait International Bank (KIB) is a bank that operates according to the Islamic sharia, based in the State of Kuwait. Incorporated in 1973, and originally known as Kuwait Real Estate Bank, KIB made the transition to its current Islamic operating model in 2007.

Today, KIB is a full service Bank operating through a network of 26 branches spread across the State of Kuwait, and offering a broad range of banking products, services and solutions in accordance with the principles of the Islamic sharia. The Bank's mission and vision also encompasses a leading social responsibility program that aims at supporting every member of Kuwait's society by spearheading a multitude of initiatives and activities. In 2015, KIB embarked on a comprehensive strategic plan, aimed at improving the Bank's performance indicators, as well as enhancing the quality of its products and services. The three-pronged strategy focuses on propelling the Bank to the forefront of the Kuwaiti banking sector and setting it on a solid path to becoming the "Islamic Bank of Choice" in the market.