KUWAIT CITY, Feb 17: Ahli United Bank (Kuwait) announced operating profit from core businesses of the Bank rose to KD 77.7 million in 2015, up from KD 68.8 million in 2014, an increase of 12.9% over the same period.
The Bank reported net profits of KD 42.8 million as compared with KD 47 million in 2014 following a one-time extra precautionary provision impact of KD 8 million and other necessary provisions to mitigate the impacts of market volatility witnessed subsequent to the sharp decline in global oil prices during 2015.
The Bank’s return on average equity (ROAE) recorded 12.70% at the end of 2015 which is the highest rate in the Kuwaiti market while recording a return on average assets (ROAA) of 1.2%, also one of the highest ratios recorded by Kuwaiti banks. The earnings per share (EPS) recorded 30.2 Kuwaiti fils per share as of 31 December2015. This reflects the strengths of the financial position of the Bank and its capability to generate sustainable revenues from its core businesses while maintaining solid funding resources.
Dr. Anwar Al-Mudhaf, Chairman of Ahli United Bank (Kuwait), commented that, “With the grace of Allah, the Bank achieved solid results in its Key Performance Indicators during the year. The total assets of the Bank increased from KD 3,597 million to KD 3,904 million as of 31 December 2015 driven primarily by the increase in the Financing Receivables by KD 200million to reach KD 2,680 million. The Chairman also indicated that customers’ confidence has supported the growth in deposits which increased by 8.4%, from KD 2,454 million to reach KD 2,661 million at the end of 2015. Under Basel-III Accord, the capital adequacy ratio reached 15.51% at the end of 2015 which is higher than the regulatory requirement of 12.5%. He stressed that these results are the outcome of the balanced approach and prudent risk management policies.
Based on the Bank’s results, the Board of Directors has proposed to the Annual General Assembly a distribution of cash dividend of 5% (5 fils per share ) and bonus shares of 10% (10 shares for every 100 shares) subject to the regulatory authorities’ and Annual General Meeting approvals.
The Chairman added that the returns realized by Ahli United Bank (Kuwait) in investment deposits during 2015 surpassed their peers in the market and represented one of the highest returns in Kuwait, whereby the Bank’s business results for 2015 showed that profit distribution rates on Kuwaiti Dinar annual investment deposits reached 2.11% p.a., return on Kuwaiti Dinar investment deposits for the six-month reached 1.60% p.a. and the return on Kuwaiti Dinar saving investment accounts reached 1.55% p.a. Ahli United Bank (Kuwait) provides an advantage to depositors as profits are distributed on a quarterly basis in accordance with the Bank’s interim results announced. The profits distributed are made available to all depositors to withdraw or reinvest.
The Bank re-affirmed its prominent position in the Islamic banking business by winning the award for the Best Islamic Bank in Kuwait in 2015 for the third consecutive year from a global specialized magazine “The Banker”, confirming the Bank’s ability to render distinctive banking services and products. Ahli United Bank has been selected among the most secure and safest Islamic banks in Kuwait and among the top 50 safest banks worldwide by “Global Finance” based on evaluating its long-term foreign currency ratings granted by the international rating agencies.
The Bank achieved the following rating by international credit rating agencies. “Fitch” affirmed the Bank’s credit strength on the Long-Term and Short-Term to ‘A+’ and ‘F1’ respectively with a stable Outlook. “Moody’s” affirmed ‘A2’ global local currency (GLC) deposit rating with a stable Outlook. “Capital Intelligence” has affirmed the Bank’s Long-Term Foreign Currency (FC) and Short-Term FC Rating to ‘A+’ and ‘A2’ respectively with a stable Outlook. These ratings underscore Ahli United Bank Kuwait’s sound financial position and the strength in its ability to maintain a rising profitability trend.
In concluding his statement, Dr. Al-Mudhaf extended his thanks and appreciation to the Central Bank of Kuwait for providing valuable guidance to the Bank, to the Bank’s Board of Directors, customers, shareholders, management and all staff members for their confidence and support.