KUWAIT CITY, Jan 28: The Chairman & Managing Director of Ahli United Bank, Hamad Abdulmohsen Al-Marzouq announced the financial results for Ahli United Bank Kuwait (AUBK) for the year 2012, indicating that the bank realized profits amounted to KD 38.5 million in 2012, i.e. an increase of 22.2% compared with profits of KD 31.5 million during the corresponding period of the previous year, notwithstanding the total precautionary provisions of KD 16.8 million taken by the bank.
These profits were generated from the operating revenues of the bank core business amounting to KD 86.4 million, whereas the net operating profits of the bank reached 48%, and the earning per share reached 36.2 fils compared with 29.6 files in 2011. This reflects the bank financial viability and its continued capability to realize operating profits generated from its banking activities.

Shares
With regard to distributions, Al-Marzouq announced that the Board of Directors of Ahli United Bank Kuwait decided to recommend to the general assembly to distribute cash profits by 18% of the nominal value of share (i.e. 18 fils per share) and bonus shares by 10% (i.e. 10 shares for each 100 shares) to shareholders recorded in the bank registers as at the date of convening the general assembly meeting, compared with 15% cash dividends and 5% bonus shares in the previous year, and this recommendation is subject to approval of the bank general assembly and the concerned authorities.
On this occasion, Al-Marzouq, commenting in a press release on the financial results of the bank, said that with the grace of Allah, the financial performance of AUBK was robust and notable despite the continued conservative policy applied by the bank in provisions taking.
The outcome of such policy has extended support to the bank financial position as signified in the growth realized in the key ratios in the balance sheet. We are confident that such rational policy applied in managing our business will enhance AUBK growth opportunities and the bank to realize successive achievements.

Al-Marzouq demonstrated the financial indicators of the bank for the year 2012, pointing out that total assets rose by KD 2633 million in 2012, and customer deposits grew by 7% to reach KD 1796 million in 2012. The bank shareholders’ equity rose also by 7.9% and the bank realized in 2012 high return ratios equal to 14.5% on the average shareholders’ equity.
On the new products and services launched by AUBK in 2012, Al-Marzouq said that our breakthrough in enhancing the performance of AUBK operations was synchronized with our concentration in 2012 on offering several new products which solidified the efficacy and integration of our banking services to satisfy our customers aspirations and requirements.
In this regard, the bank succeeded in launching the auto-purchase financing service through several repayment options associated with flexible and very high ceiling to enable customers to acquire in no time the cars they wish through the bank branches located in all areas in the State of Kuwait, along with the Ahli United Bank showroom which was inaugurated in the year 2012 and displayed distinguished group of cars.
 

Package
The bank succeeded also in launching the real estate financing service through a new package of facilities and advantages. This new service coped up with the developments in the real estate market and the variable customers requirements and witnessed considerable demand by the bank customers.
Al-Motahid succeeded also in developing the Hassadi Prize Program and increasing the prizes offered through this Program, in an indication of the success of this program, which is counted the First Shari’ah compliant Prize Program in the State of Kuwait, and the sole one which offers weekly and quarterly prizes, and the two feasts prizes, which surpass the amounts offered by the other prize programs.
Al-Marzouq added that thanks to the stable and diversified financing base and the innovated products package, AUBK maintains its vested position in providing the best financial services which satisfy the retail and corporate requirements in our dear country according to the state-of-the-art banking technologies tailored with Ahli United Bank position, being the earliest bank to start banking business in the State of Kuwait.

Al-Marzouq expressed Ahli United Bank Management pride of the acclamations and the high credit ratings accorded by the most notable world credit rating agencies, indicating in this regard that “Capital Intelligence”, the international credit rating agency, raised Ahli United Bank Kuwait (AUBK)’s Long-Term Foreign Currency (FC) Rating to ‘A’ based on the Bank’s sound and better than average asset quality, solid capital adequacy, good liquidity positions, and recovering profitability.
Al-Marzouq indicated also that Moody’s International Rating Agency affirmed Ahli United Bank Kuwait (AUBK) ratings with stable future outlook supported by the bank’s strong financial fundamentals, and affirmed AUBK’s long term global local currency at A3 and Moody’s commended the results achieved by Ahli United Bank Kuwait during the first nine months of 2012.

Policies
Al-Marzouq stressed that Ahli United Bank, Kuwait still adheres to well-established prudent policies and salient management approaches. Therefore, the bank has been accorded with world impartial certifications which confirmed the future financial stability of the bank, the quality of its assets and the stability of its profits. This helped also the bank to enhance and maintain the salient and stable credit rating according to the world Fitch Ratings, which reflects the bank strong financial position even within the inconvenient economic conditions. Fitch Rating commended the quality of the bank assets, and this is another certification that Ahli United Bank, Kuwait carries on its business in conformity with firm strategy that enhances depositors and customers confidence in the bank management of its banking business.

Al-Marzouq stated that the high credit ratings accorded to the bank are deemed to be considerable achievements to the bank and impartial official recognition of the effective measures taken by the bank in carrying on its business in accordance with Islamic Shari’ah provisions, for the purpose of restructuring of its business, raising its profitability and enhancing its financing structure, confirming that these salient ratings accorded to the bank reflect the soundness and strength of the bank financial position featured with its flexible and positive capability of sound management.

Al-Marzouq concluded his statement expressing his thanks and appreciation to the bank customers and shareholders who accorded their confidence in the bank and its board of directors, and extended his thanks to all the bank staff members for the efforts they expended and their continued support which brought forth all these outstanding outcomes.