Boubyan Bank logs KD 35.2 mln profit in 2015 – EPS clocks 17.09 fils; board recommends distribution of 5% of cash dividends, 5% in bonus shares

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KUWAIT CITY, Jan 23: Boubyan Bank profits continues to grow in 2015 achieving  a growth rate of 25%. The bank’s net profits amounted to KD 35.2 Million compared to KD 28.2 Million in 2014, while the earning per share amounts to 17.09 fils compared to 13.70 fils for 2014.

The Board has recommended the distribution of cash dividends of 5% per nominal share value (i.e., 5 fils per share) and 5% in bonus shares (i.e., 5 shares per each 100 shares).

Mahmoud Yousef Al-Fulaij, the Chairman, stated : “This increase in the bank’s profitability is attributed mainly to the success bestowed by Allah, the Almighty, upon us as well as shareholders’ and customers’ confidence in the bank, and the efforts exerted by all the bank staff and their unwavering dedication and keenness on delivering the highest service levels to customers coupled with innovation and creativity, which have been adopted by the bank since the launch of the 2009 restructuring strategy”.

Al-Fulaij went on to state that the indicators showed that the bank witnessed a remarkable growth during 2015 where the total assets increased to KD 3.1 billion with a growth rate of 18% while the operational revenues increased to hit KD 91.4 million with a growth rate of 17% in addition to the increase in customers’ deposits by 15%, amounting to KD 2.4 billion.

He further added that the total equity of the bank increased to KD 318 million compared with KD 296 million last year and that there was a notable increase in the financing portfolio to KD 2.2 billion with a growth rate of 20% in addition to the continuous growth of the bank’s customers’ base.

Al-Fulaij also stated that the market share, in financing, increased to approximately 6.5% in the meantime, while the share of the retail finance increased to approximately 10%.

On the other hand, Adel Abdul Wahab Al-Majed, the Bank’s Vice Chairman and CEO  stated that Boubyan Bank obtained the initial approval of the Central Bank of Kuwait to proceed with sukuk issuance in order to enhance its capital base through Common Equity Tier 1 (CET1) as per Basel III instructions on Mudaraba basis, and it was expected that the total issuance would be USD 250 million approximately.

He further added that Boubyan Bank would take the final decision on the said issuance and the timing thereof after obtaining the final approvals from the regulatory authorities and pending their instructions in that regard.

Adel Abdul Wahab Al-Majed, the Bank’s Vice Chairman and CEO, said: “Creativity and innovation are two of the main values adopted in the bank’s business philosophy, hence, the bank is very keen on reinforcing such values and embodying them in innovative products and services which are usually introduced by the bank for the first time in the Kuwaiti market”.

“This policy has crowned the bank with many achievements in 2015 such as earning a number of international awards, the most prominent of which was “the World’s Best Islamic Digital Bank” award “The Global Winner” in the field of e-banking “digital” services from Global Finance for the year 2015.”, Al-Majed added.

He further highlighted on  Boubyan Bank’s achievement in the field of e-banking services or digital services, which was  the fruit of many years of efforts and investments made by the bank’s management which emphasized the management’s foresight and its strategy.

Al-Majed went on to add: “Focusing on investing in technology is part of the bank’s strategy which focuses on customers and considers them as the main pillar of development sought by the bank as well as the pillar to  achieve success.”

“Customers’ opinions have always been appreciated, and the bank has always been trying to figure them out via various surveys conducted by the bank in addition to the surveys made on various social media platforms.”, he stated.

It is worth-mentioning that Global Finance has also named Boubyan Bank as “The Best Islamic Digital Bank in Kuwait”, and this confirms the bank’s leadership in the Kuwait market due to the strong strategy devised by the bank in order to attract and serve customers who are seeking e-banking services.

The Global Finance Magazine stated that Boubyan Bank managed to attract and serve online customers, succeeded in getting clients to use web offerings, achieved growth of online customer base whether through the internet or via smart phones, and that the bank offered innovative and creative distinctive banking and non-banking services via e-channels.

On the other hand, Al-Majed stated that the bank had a number of exclusive and outstanding banking products and services which were first introduced in the Kuwaiti market by the bank such as “Cardless Withdrawal” and “Civil ID Withdrawal” services.

He added that the bank was clearly ahead of the curve in the field of technological banking services such as the MiniBank, virtual credit cards as well as many other services.

Al-Majed went on to state that the past year witnessed a continued geographical expansion for the bank in addition to offering more outstanding services and products, some of which were offered for the first time in the Kuwaiti market, making the name of Boubyan Bank a synonym for innovation and creativity in the banking services’ domain where the bank surprises the market with innovative products and services.

“The bank managed to establish itself as one of the best institutions in the Kuwaiti private sector in the field of customer service evidenced by its recent accomplishments whereby the bank has received three awards from Service Hero, the international consumer-driven customer satisfaction index. The most prominent of these awards was the 1st Place in Customer Service atop all companies in Kuwait.”, Al-Majed added.

He further stated: “This kind of awards once more reiterates our bank’s superb competitive abilities, and its ability to provide its customers with the highest levels of services and the best products customers may seek, whether they are existing customers or potential customers targeted in the Kuwaiti market.”

“Customer service has always been our recipe for success, as we have always taken into account that all our customers are special and that they deserve the best because meeting their aspirations and ambitions should be up to the level of their expectations when they choose us. In other words, by choosing us, customers should be rewarded with special care and attention.”, Al-Majed stated.

Al-Majed also stated that Boubyan Bank wanted to be the first choice and preferred destination for customers seeking corporate banking services, stressing that the Corporate Banking Group maintained strong relationships with a number of national companies working in productive economic sectors. He highlighted as well that Boubyan Bank would also target medium and large sized companies in order to provide the best banking service.

“As a part of Boubyan Bank’s continuous efforts to develop services and ensure customers’ satisfaction in a manner that suits their banking expectations and needs, the Corporate Banking Group was first in the Kuwait market to launch a service that would  enable bank customers to open documentary credits and issue guarantees over the internet in addition to the ability to develop a working capital murabaha, which provides flexibility in terms of withdrawal and deposits for companies in a manner that matches their cash flows.”, Al-Majed stated.

He added: “Boubyan Bank managed to achieve outstanding growth rates in its 2015 credit portfolio via attracting a number of operational companies known for their financial and economic creditworthiness while continuing to maintain the highest standards of credit quality and assessing  and diversifying risks.”

Al-Majed also mentioned that the Bank received the award for Replacement and Nationalization of Manpower in Kuwait for the second year in a row. The award is given on an annual basis by the Council for the Ministers of Labor for the best GCC institution.

He stressed that receiving this outstanding award was the fruit of ceaseless efforts throughout the past years where the bank managed to increase the levels of national manpower up to 75% in the meantime.

“This percentage is not only considered among the highest at the level of Kuwaiti banks, but also at the level of the Kuwaiti private sector. The bank has become a role model to follow in the field of recruiting domestic manpower and creating distinctive job opportunities region-wise.”

On the other hand, Al-Majed referred to the bank’s interaction during 2015 with various segments of the society, especially the youth, who received support from the bank at various levels.

He further stated that the bank organized and sponsored more than 100 events as well as activities initiated by the bank’s departments in addition to the effective role played by the bank’s branches in providing services to their neighborhoods and interacting with various sectors.

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