KUWAIT CITY, March 17: ABK held its Ordinary and Extra-Ordinary General Assembly Meetings at its Head Office on Saturday 16th March 2013. The General Assembly approved a cash dividend of 6% (6 Fils per share) and bonus shares of 7% (7 shares per hundred shares) for the financial year ended 31/12/2012, subject to the approval of the regulatory authority.

Commenting on this occasion, Ahmed Yousuf Behbehani, Chairman of the Board, stated the following:
“ABK was able to report a net profit of KD 30 million and earnings per share of 20 fils with total assets of KD 2.97 billion, customer deposits of KD 1.84 billion, and shareholders’ equity of KD 516.7 million.  The Capital Adequacy Ratio reached 27.65%. These figures reflect our exceptionally strong financial position in a difficult economic and financial period.  Our capital adequacy ratio is the highest among local banks and may be the best on international banking level.”

Financial Highlights
*  ABK achieved further growth in its operational profits which exceeded KD80 million.  The bank maintained its market share in spite of the difficult economic conditions during 2012.
 

*  ABK Capital Adequacy Ratio exceeded 27% by the end of 2012, which is the strongest amongst local banks and one of the strongest globally.
 

*  Effective risk management and tight control over the loans portfolio reduced the risks and well maintained the strong financial position of ABK.
 

*  ABK was ranked the first in the retail banking category of Kuwait’s “Service Hero”.
 

*  The Bank succeeded in applying a conservative credit policy with more precautionary provisions to support the financial position of the Bank and to face any exceptional or unexpected circumstances.
 

*  ABK’s ability to consistently distribute cash dividends and bonus shares to the shareholders despite the international financial crisis and the difficult economic conditions thereafter. 
 

Outstanding Performance
About the most important factors that help ABK to achieve this good performance during 2012, Behbehani pointed out the following:
*  The successful strategic plan set by the bank and its ability to achieve good performance despite the difficult economic conditions prevailed during the year and the lingering after-effects of the financial crisis, and stagnant economic conditions.

*  ABK applied a prudent and precautious method in risk management, and has taken further provisions on the basis of our assessment of the current operation conditions and conservatively on various business sectors to guard against potential outcomes.

*  The focus concentrated on taking the opportunity to optimize the balance sheet, liquidity, and interest rate management.  At the same time, ABK reviewed its internal operations in pursuit of superior efficiency in all areas, particularly customer service.
 

*  Enhancing employee skills and capabilities is a constant priority, and upgrading of technology and systems is moving us to an industry-leading level.
All these factors contribute to underpinning ABK’s core strengths, while positioning the Bank for growth through sustained efficiency.
The Bank is now very strongly placed to capitalize on an economic upturn, and to perform as well as possible while current conditions continue.

ABK Rewards During 2012
As for the awards achieved by the bank during the year, Behbehani pointed out the ABK was ranked first in the Retail Banking Category of Kuwait’s “Service Hero” Awards.  ABK also was singled out as Kuwait’s most socially responsible bank by receipt of the Excellence Award from the Arab Organization for Social Responsibility. The award was made after a comprehensive review of ABK’s social responsibility efforts and achievements in recent years.
As for the training of staff and upgrading of their skills, Behbehani stated that ABK Academy has been a vital element in the preparation and training of fresh graduates embarking on a banking career, and instilling ABK’s culture and values in all new recruits. The benefits become apparent in superior levels of customer service, as recognized by ABK’s receipt of the Euro service Award in the banking category.

Social Responsibility
ABK’s outstanding achievements in contributing to the welfare of society were recognized in 2012 by receipt of the Excellence Award from the Arab Organization for Social Responsibility, singling out ABK as Kuwait’s most socially responsible bank. The award was made after a comprehensive review of ABK’s social responsibility efforts and achievements in recent years.  ABK has supported a wide spectrum of causes, ranging from education to youth, healthcare, and the environment. Activities included various sports, health awareness, and entertainment programs for staff, and supporting CSR events run by private institutions and nonprofit organizations.

The Bank is acutely conscious of its role in Kuwaiti society, not just as a provider of essential business services but as a catalyst in the well-being and development of the community at large.

As for his expectations about the world and local economy, Behbehani stated the following:
“We have cautious optimism about any major improvement in the world economic conditions during 2013 and early 2014, but we expect some improvement in the local economy.  We are ready to seize the investment opportunities when they become available with this expected improvement.  We have high caliber cadres and extended banking experience supported by our financial strength to achieve the targeted growth and fulfill the requirements and demands of our customers and shareholders.”

Behbehani concluded by saying, “I am confident that ABK is well placed to play effective role in any growth expected during the coming period with ability to compete well in the market.  The financial strength of ABK confirmed by all the financial indicators and high Capital Adequacy Ratio are stronger than before.  We have excellent liquidity and we have taken further precautionary provisions that provide us with efficient balance sheet which is stronger than ever.”