KUWAIT CITY, July 19: Al Ahli Bank of Kuwait reported a net profit of KD 28.4 million for the six months ended 30 June 2011 as compared to KD 26.2 million in the corresponding period, a growth rate of 8 percent. Earnings per share amounted to 20 fils with return on assets of 2.0 percent and return equity of 12.3 percent. Operating profits before provisions also improved by 10 percent to KD 41.2 million compared to KD 37.3 million in the corresponding period.
Ahmed Behbehani, ABK’s Chairman said, “This was an excellent performance in the difficult market conditions that have prevailed during the first half of 2011. In spite of these challenges ABK has produced positive results with stable and continuous growth in profits.
Effective balance sheet management strategies combined with prudent risk management over the years has enhanced the financial performance of the Bank. The Bank continues to have a conservative provisioning policy and has taken additional precautionary provisions to secure its financial position and protect shareholders’ interests.”

“The Bank has a sound capital base with shareholders’ equity of KD 468 million resulting in a strong capital adequacy ratio significantly above regulatory norms. This has given the Bank the ability to expand and grow its operations , withstand any unforeseen contingencies and provided us the ability to meet Basel III capital requirements. More importantly all three major international rating agencies (Moody’s, Standard & Poor’s, Fitch) have affirmed ABK’s credit ratings as investment grade with a stable outlook recognizing the profit performance and intrinsic strength of the institution”, added Behbehani.
Further, he stated that, “Our core strategy has been adapted to meet the turbulent economic circumstances and we remain focused on minimizing risks across our business areas, improving operational efficiency and enhancing value for our shareholders and customers. Over the past five years the Bank has expanded its retail franchise and has added 9 new branches (including opening a new overseas branch in Abu Dhabi). The Bank has also increased its suite of products and services to provide a world class banking experience for its customers. In the coming years the Bank will continue to invest in its infrastructure and systems to secure its position and improve its competitiveness.

Behbehani commented that market conditions in the Middle East remained uncertain and economic growth was on the downturn. However, he remained hopeful that the high oil prices would assist in the recovery of local and regional economies.
In conclusion, Ahmed Behbehani said “I take this opportunity on behalf of the Board of Directors to thank the Bank’s valued customers for their trust and confidence, the Bank’s management and staff for their hard work and loyalty and shareholders for their continued support and faith.”