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Boubyan Bank posts KD 5.7m profit in Q1 EPS clocks 2.9 fils during first qtr

KUWAIT CITY, April 12: Boubyan Bank announced a net profit of KD 5.7 million for the first quarter of 2014, a growth of 84% compared to the same period in 2013, with earnings per share of 2.9 fils compared to 1.58 fils in 2013. Adel Abdul-Wahab Al-Majed, Vice-Chairman & CEO of Boubyan Bank said: “The increase in profits during the first quarter by 84% represents a good start for this year, and makes us more optimistic that 2014 will be an excellent year that will reap benefits to shareholders, customers and staff. “It is fortunate that 2014 is the fifth year of our Five-Year Strategy initiated in 2010, and this year we will celebrate with our shareholders, customers and staff the 10th Anniversary of Boubyan Bank which started actual operation on Nov 28, 2004,” added Al-Majed.

Commenting on the Five-Year Strategy, Al-Majed said: “You all remember the important decision we took to clean up the balance sheet upon assuming the management duties. Despite financial losses thereof, this gave us more flexibility and ability to move ahead in the last four years and realize high growth rates on the level of both operating and net profits.”  “Since the first day of assuming management duties, we believed that the competition among banks is no longer limited to the type of products or services provided, but also in service level and the way of providing it to customers, and therefore, the human factor has become the key pillar and determinant in competition.”

Al-Majed emphasized that the Bank has been focusing on human resources and has significantly invested in them. He mentioned that the key differentiator for continued excellence in a bank is customer service level rather than products since any bank can offer a new product and by the passage of time other banks will follow it by offering similar products and services. Regarding the Bank’s new strategy, Al-Majed said that many of our shareholders, customers and even staff ask about our new strategy at the end of the term of the current one initiated four years ago. In this respect, I would like to stress that we will continue to follow the same strategy, especially when the previous years proved that we are realizing our objectives in a positive way and are moving on the right track.

However, this will not prevent us from making some changes thereto based on the experience we gained from implementation in order to overcome any negative aspects and focus on the positive ones. Al-Majed indicated that Boubyan Bank will start focusing on external markets noting “We will not necessarily start overseas expansion now, but we will identify and assess many external opportunities to seize the best among them.” It is noteworthy that Boubyan Bank has raised its shareholding in Bank Muamalat (one of the biggest Islamic banks in Indonesia) due to the increasing growth in the Islamic financial services market there.

Positive Indicators
On the other side, Al-Majed highlighted a number of key positive indicators for the Bank emphasizing that the most significant achievements are the growth of total assets to KD 2.3 billion by the end of the first quarter of 2014, a year on year growth of 18%, the increase in operating income to KD 18.2 million during the first quarter of this year compared to KD 15 million for previous year; growing by 22%, and the increase in customers’ deposits to KD 1.7 billion; growing by 17% year on year. In addition, the Bank’s total equity increased to KD 272 million compared to KD 257 million, and financing portfolio increased to KD 1.6 billion compared to KD 1.3 billion in March 2013; growing by 19%, in addition to the continuous growth in the Bank’s customer base.

Boubyan Plans
Al-Majed noted that the Bank realized the above achievements by expanding the business base and focusing more on core banking activities including products, services and finance solutions catering to both retail and corporate needs. “The Bank’s “Strategy of Returning to Core Banking Business” (2010-2014) focused on expansion in the local market through retail and corporate services and products. Regarding services, efforts were focused on two sides; the first is increasing the number of local branches or relocation of the same so as to be closer to customers; whereas the second was through offering brand new, innovative products and services,” Al-Majed added. About the Bank’s branches, Al-Majed said that the number of branches reached 26, indicating that the  target  of 30 branches by the end of this year has become more closer, and  may even be exceeded.

Two Awards in the 1st Quarter
Boubyan Bank started the year 2014 with winning two awards: the first is “Rising Star in Islamic Finance in Kuwait” from Euromoney, and the second is “Best Islamic Bank in Kuwait for Customer Service” from Service Hero for the fourth year in a row.

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