Al Ahli Bank of Kuwait Delivers Strong Performance in Q1 2024
This news has been read 1052 times!
Kuwait City, May 4: Al Ahli Bank of Kuwait (ABK) proudly announced its robust financial results for Q1 2024, once again affirming its position as a leading financial institution.
Financial Performance
ABK reported a Net Profit of KD 14.52 million, representing a 35% increase and an increase in Earnings per Share (EPS) of 50% from 4 fils to 6 fils. Operating Profit also witnessed an increase of 25%, reaching KD 27.80 million while Operating Income also increased by 21% to KD 51.86 million, reflecting the Bank’s strong profitability and shareholder value creation.
Total Assets of the Bank reached KD 6.51 billion while maintaining steady growth in Loans and Advances amounting to KD 4.27 billion, with Customer Deposits at KD 3.91 billion, affirming the Group’s reputation as a trusted financial partner. Moreover, the Bank’s Non-performing Loan (NPL) ratio stood at 1.34%, with NPL coverage at 462%, Capital Adequacy Ratio (CAR) at 16.27%, and Shareholders’ Equity at KD 593.52 million, further underscoring ABK’s financial stability, healthy financial position, and robust balance sheet.
Economic Overview
Commenting on the strong performance, Mr. Talal Behbehani, Chairman of ABK, said, “Kuwait’s resilient economic environment in 2024, characterized by efforts to diversify and strengthen the economy, has played a significant role in supporting ABK’s recent strong financial results.”
He continued, “ABK’s strategic alignment with the evolving economic landscape, coupled with our focus on innovation, customer-centric services, and operational excellence, has enabled the Bank to capitalize on these opportunities, drive sustainable growth, and deliver value to stakeholders amidst a promising economic backdrop.”
Furthermore, Mr. Behbehani recapped on the recent upgrade of the Group’s shares from the Main Market to the Premier Market of Boursa Kuwait during Q1. This achievement is a reflection of the Group’s success in meeting the criteria required for the upgrade that also signifies shareholders’ confidence in ABK’s stock, as evidenced by the trading rates aligning with stipulated requirements. Mr. Behbehani also highlighted the potential for increased trading in ABK’s stock by international institutions and funds following the stock’s inclusion in Boursa Kuwait’s Premier Market index as a result of this development.
Credit Ratings
ABK is pleased to announce that it maintains its strong credit ratings of A from Fitch and A2 from Moody’s. Mr. Behbehani said, “This essentially reflects our financial stability, creditworthiness, and risk management capabilities. It also signifies that our bank continues to be perceived as a reliable partner with increased investor confidence.”
Environmental, Social, and Governance (ESG)
ABK’s steadfast commitment to ESG principles underscores its dedication
to responsible and sustainable banking practices. Mr. Behbehani affirmed, “The
Bank recognizes the importance of incorporating ESG considerations into
operations to create long-term value for all stakeholders while positively
impacting the environment and society.”
In alignment with this commitment, ABK has embarked on developing a comprehensive five-year group strategy and framework that will further enhance its ESG efforts and enable it to persevere in the future. Mr. Behbehani continued, “This strategic initiative aims to integrate ESG criteria into decision-making processes, enhance transparency, promote ethical standards, and drive positive social and environmental outcomes.”
Egypt and the United Arab Emirates
International operations in Egypt and the UAE continue to significantly contribute to the Group’s profits. Mr. Behbehani stated that ABK continues to take precautions and develop prudent plans to address the economic challenges in Egypt. In addition, the Group persists in its efforts through its Dubai International Financial Center (DIFC) branch to gain the trust of global investors, secure loan deals, and enhance financial performance.
Digital Advancement
ABK persists in its relentless pursuit of digital advancements, exemplified by the recent launch of its new state-of-the-art website, underscoring the Bank’s commitment to innovation and enhancing customer experience.
Describing the new platform, Mr. Abdulla Al Sumait, Acting Group Chief Executive Officer at ABK, said, “Our new website embodies cutting-edge technology, intuitive design, and user-friendly features that cater to the evolving needs and preferences of digital-savvy customers.” The layout, user interfaces, and tools offer customers a convenient and engaging platform to access ABK’s banking services, information, and support anytime, anywhere.
This integration of technology with customer-centric principles both elevates the Bank’s digital presence and also reinforces its reputation as a forward-thinking financial institution that prioritizes customer satisfaction, engagement, and convenience in an increasingly digital-driven world.
An Active Start
Mr. Al Sumait mentioned that in Q1 of 2024, the Group signed a USD 250 million credit facility agreement with South Korea’s Daewoo Engineering and Construction Company. This partnership, in collaboration with Commercial Bank of Kuwait and Burgan Bank, underscores the strong relationships and trust the Group has cultivated with global institutions across different sectors, thanks to its unique solutions, professional approach, and ability to meet diverse needs.
He stated that Q1 also witnessed the reopening of the Jabriya branch after undergoing a complete renovation, complemented by the latest technologies in the banking industry. This achievement occurred within a period of three months, demonstrating ABK’s commitment to innovation and excellence in customer service. Mr. Al Sumait stressed that the upcoming period will witness the continuation of the plan across the Bank’s branches in various governorates with the aim of improving its competitive position.
Furthermore, the Bank launched a series of new and uplifted products and services, of which included its new cashback credit card proposition.
This is in addition to ABK’s continuous endeavors to launch several offers and promotional campaigns as part of its strive to attract new customers to its constantly growing family.
Employee Empowerment
ABK’s unwavering dedication to employee empowerment and recognition plays a pivotal role in fostering a culture of excellence, engagement, and motivation within the organization. “We are committed to recognizing and valuing employees as integral partners in the Bank’s growth journey. We place a strong emphasis on empowering them through training, development opportunities, and a supportive work environment that nurtures their professional growth and fulfilment,” said Mr. Al Sumait.
Recognizing that employees are the driving force behind its success, he claimed that ABK actively acknowledges and rewards performance and contributions, both within and outside the workplace.
Recently, the Bank organized a series of events and initiatives aimed at celebrating and rewarding employees for their dedication, innovation, and commitment to excellence, such as the Ramadan Ghabga, National & Liberation Day, Mother’s Day, and so on.
“We strive to cultivate a positive and inclusive work culture and reinforce the connection between individual efforts, organizational achievements, and collective success,” Mr. Al Sumait emphasized.
Corporate Social Responsibility (CSR)
Employees at ABK actively engaged in a series of CSR sponsorships, exemplifying the institution’s commitment to social responsibility and community welfare. The most recent of which were during the holy month of Ramadan, where employees participated in iftar distributions to individuals in need and collaborated with the Kuwait Red Crescent Society to distribute care packages, providing essential support and assistance to vulnerable populations during the holy month.
Mr. Al Sumait also affirmed that ABK continues to support the Central Bank of Kuwait and the Kuwait Banking Association’s ‘Let’s Be Aware’ banking awareness campaign. As part of this commitment, he pointed out that the Bank launched a Ramadan TVC focusing on educating customers about ways to confront banking fraud and protect customer information, which exceeded 10 million views during the holy month.
This news has been read 1052 times!
