KUWAIT CITY, March 27: ABK held its Ordinary General Assembly meeting at its Head Office Building on Saturday 27 March 2010. The General Assembly approved a cash dividend of 15% (15 Fils per share) for the financial year ended 31 December 2009 to the shareholders registered as on the date of the General Assembly.
 The General Assembly also re-elected the existing Board Members for the next 3 years (2010 – 2012) – term.
Commenting on the results, Ahmed Yousuf Behbehani, Chairman of the Board, stated that:
“ABK succeeded in achieving notable growth in its core banking business. The net profits amounted to KD39.2 Million after taking precautionary provisions. The operating profits amounted to KD79.9 Million. The Earnings Per Share was 34 fils, the Return on Assets 1.31% and Return on Equity was 12.19%. With these results, ABK ranks the second among the commercial banks in terms of profitability”.
“ ABK management succeeded in reducing the cost of funds which resulted in increasing the net interest income by 19.4%. The Cost to Income ratio is the second lowest among the local banks. The Post-Liberation Non-Performing Loans to the total loan portfolio is only 4.25%”, he added.
Capital Adequacy Ratio:
When asked about the Capital Adequacy Ratio of ABK, Behbehani replied:
“ABK maintains a strong capital adequacy ratio of 17.23% as on 31 December 2009, and it is expected to exceed 20% next month after the capital increase to be one of the best banks in terms of capital adequacy ratio.”
Reasons of ABK Success in overcoming the negative effects of the World Financial Crisis:
 Behbehani pointed out that the effective risk management, and close monitoring of the loan portfolio contributed to the mitigation of risks and maintaining a strong financial position. The application of a prudent policy and taking sufficient precautionary provisions to face any exceptional or unexpected conditions helped the bank to maintain its strong financial position. The bank also maintains high credit ratings certified by the world rating agencies such as S & P, Moody’s and Fitch Ratings, with a stable future outlook.
Regional Expansions of ABK
Behbehani talked about the achievements of ABK during the previous year regarding the local and regional expansions. He pointed out that the Bank has expanded in various fields including the opening of new markets, introduction of innovative products, developing of business and IT systems, expansion in retail branch network, and ATMs. He added that ABK has been focusing on local expansion in Kuwaiti market and regional expansion in GCC countries. Now ABK retail branches reached 25 in Kuwait in addition to 2 international branches in Dubai and Abu Dhabi in UAE.
The Challenge that Faces ABK
As for the challenge that faces ABK, Behbhani said:
“The challenge for ABK in 2010 will be to enhance growth and shareholders’ value through a process of prudent risk management, cost and capital allocation and diversification of the bank’s revenues.
Control of Risks, Compliance, Corporate Governance and Anti-money Laundering:
“The development of risk framework and internal control measures protect the bank against the effects of the world crisis. Furthermore, the measures set forth by the Bank to cope with the expansion plans and business lines in retail and corporate banking in addition to retail branches network have contributed to the enhancement and strength of ABK’s position.
National Manpower and Performance Upgrade
As for the employment and training of the national manpower, the Chairman of the Board pointed out that ABK recruitment efforts focus on attracting and employing the qualified and talented national and providing them with necessary training and career growth opportunities. The bank pays a special attention to the employment of Kuwaiti graduates in banking and provides its employees with a wide array of internationally recognized training courses and workshops to help them build their careers in the banking industry.
Corporate Social Responsibility
As for the Corporate Social Responsibility, Behbehani stated that:
“We are proud of our continued efforts in the area of corporate and social responsibility, which has been a top priority for us for many years now. In 2009, the bank maintained its policy of supporting people and businesses within our community, and has provided financial support and donations to a number of institutions that provide social and community services to out citizens, especially in the fields of sport, education and healthcare, as well as helping children with special needs.”
Election of the new Board:
The General Assembly Meeting of the Bank re-elected the existing 7 Board Members for the next term for 3 years as follows:
1) Ahmed Yousuf Behbehani
2) Ali Hilal Al-Mutairi
3) Salah Ahmed Al-Serhan
4) Khalid Othman Abdul-Wahhab Al-Othman
5) Ali Ibrahim Hejji Hussain Marafi
6) Talal Mohamed Reda Yousuf Behbehani
7) The Public Institution for Social Security, represented by Sulaiman Abdallah Sulaiman Al-Muraikhi
Reserve Member: Azzam Abdul-Aziz Ibrahim Al-Feliej