Al-Jarrah: KIB Group continues to achieve impressive results and expand with its strategic plans

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Kuwait City, Mar 27: Kuwait International Bank (KIB) held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) on Wednesday, March 27, 2024, with 75.22% of shareholders in attendance. The AGM approved the agenda items of both the ordinary and extraordinary General Assembly meetings, among which was the recommendation to distribute cash dividends of 5 fils per share and 3% bonus shares (3 shares per 100 shares) from the issued and paid-up capital.

Sheikh Mohammed Jarrah Al-Sabah, Chairman of KIB Group, inaugurated the AGM and EGM with a speech in which he spoke about the financial results of KIB Group amid ongoing geopolitical conditions and their impact on the global economic landscape. He stated: “We continue to pursue excellence and achievement, despite the successive changes around us, armed with our solid strategic plan, the support of our Board of Directors, and the passion and dedication of our employees. KIB Group continues its path of sustainable growth, reflecting the strength of its financial position, the success of its strategy, and the flexibility of its business model, reinforcing its position as one of the leading Islamic banks locally.”

Al-Jarrah added: “The improvement in KIB Group’s performance were the hallmarks of the past fiscal year, thanks to the Bank’s commitment to expanding its commercial banking services, aiming to achieve diversified and sustainable growth in core business activities and targeted economic sectors that align with its strategic plans. This, alongside strengthening business relationships with key partners and establishing new strategic partnerships, has positively and clearly reflected on the size, quality, and diversity of the Bank’s financial and investment portfolio, as well as on the efficiency of its operations and the enhancement of its customer experience.”

Commenting on the most important achievements based on its financial statements, Al-Jarrah explained that KIB Group recorded a 40% increase in net profit attributable to shareholders, amounting to KD19 million, with earnings per share (EPS) of 10.28 fils at the end of 2023. Meanwhile, total operating income increased by 16% over 2022, reaching approximately KD73 million in 2023. Whereby the audited consolidated financial statements showed a 51% increase in financing revenues, reaching KD172 million, compared to approximately KD114 million in the previous year. They also indicated that investment income grew by 13%, while depositors’ accounts increased to exceed KD2 billion by 31 December 2023. Meanwhile, shareholders’ equity grew by 31% to reach KD333 million as of 31 December 2023. KIB also maintained adequate levels of Basel III, and the total capital adequacy ratio stood at 19.8%.

Al-Jarrah confirmed that these results were achieved concurrently with the Bank’s success in improving the quality of its assets during the year 2023. KIB’s total assets amounted to KD3.62 billion while the Bank’s financing portfolio reached KD2.49 billion. The investment portfolio grew to reach approximately KD363 million by 31 December 2023, supported by the increase of investments in high-quality Sukuk.

Al-Jarrah added: “During the past year, we have achieved significant progress and real accomplishments in most initiatives and all key pillars of our strategic plan. Foremost among them were the radical developments in our technological infrastructure, which extended to encompass the upgrade or modernization of most of our core systems. This strengthened our capabilities to develop systems and launch digital services and products faster and more innovatively. Consequently, this had a positive impact on our products and services in terms of volume, quality, and diversity. There was a noticeable expansion during the year, with the launch of specialized digital platforms for important sectors such as the real estate sector, entrepreneurship sector, and commercial partners.”

Sustainable achievements on the financial and digital fronts

From his side, Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer of KIB Group, said: “The profitability growth of KIB coincides with the enhancement of the Bank’s financial position, in addition to its adoption of comprehensive and effective hedging policies to manage risks, and a well-established and trusted approach to crisis management.”

Bukhamseen added: “The year 2023 witnessed the successful increase of KIB’s share capital, in line with the Bank’s adoption of a digital transformation strategy and the fundamental plans it encompasses, and the efforts aimed at modernizing the business model, enhancing sustainable growth indicators, and achieving further development. KIB completed the capital increase subscription process successfully in June 2023, by offering 428,571,429 shares valued at KD60 million. The Bank’s paid-up capital increased by 34.98% to reach KD165.4 million. The rights issue was oversubscribed by 687%, reflecting the shareholders’ and investors’ confidence in KIB’s dynamic strategy and future vision.”

On the digital front, Bukhamseen said: “The year 2023 was filled with digital achievements, as the Bank’s focus in recent years on investing in digital infrastructure and developing the skills of its human capital has led to a revolution in innovative digital solutions and products that comply with Islamic Sharia and meet the highest global standards.” He pointed out that last year, KIB unveiled three new, advanced digital platforms: the first-of-its-kind digital real estate platform, KIB Aqari; the all-new and revamped Corporate Online Banking platform; and the upgraded and improved version of the KIB Mobile application. This affirms the Bank’s commitment to keeping up with the latest digital innovations and its expansion plan in digital banking services and products, in order to meet all customer needs in a more comprehensive, efficient, and secure manner.

On another note, Bukhamseen praised the official opening of “KIB Mubader Center” to support the entrepreneur segment of small and medium-sized enterprise (SME) owners, in addition to the founding of KIB Invest, the investment arm of KIB, with a capital of KD45 million, which centers its activities on Islamic investment and providing a comprehensive suite of investment services that fulfill the needs and aspirations of the Bank’s customers within the domestic and global markets.

Bukhamseen further commented: “The establishment of a new company comes as part of KIB Group’s continued efforts to reinforce its pivotal role in vitalizing the domestic capital market and providing its customers with outstanding investment opportunities. It also comes as part of the Bank’s endeavors to attract more investors to its customer base, offering them diverse and thoroughly thought-out investment options that guarantee maximum returns with minimum risk.” On other hand, KIB Group continues to provide Sharia’a compliant Takaful Insurance services through one of its subsidiaries “Al Dawli Takaful Insurance”.

A journey full of successes and awards

On his part, Mohamed Said El Saka, KIB Group’s Deputy CEO, said: “The good financial results achieved by KIB Group for the fiscal year ending on 31 December 2023, reflect its continuous diligence and relentless efforts in focusing on enhancing its position in the local banking market. They also affirm its ability in strategic planning and its long-term vision, enabling it at every stage to progress and move forward towards achieving sustainable positive financial results while maintaining the quality of its assets.”

El Saka highlighted that: “KIB Group’s excellent and strong performance throughout the past year deserved appreciation and recognition, as it has received numerous prestigious awards and certificates that confirm its ongoing progress and significant achievements in the fields of Islamic finance and social responsibility. KIB garnered several awards from World Finance magazine, including the “Best Islamic Bank in Kuwait for 2023” award, and the “Best Customer-Focused Islamic Banking Products and Services in Kuwait” award. KIB also won several awards from Capital Finance International ( KIB secured the “Best Banking Vision – MENA 2023” award, as well as the “Best Sharia-Compliant Bank – MENA” by the magazine for the year 2023. also named KIB the “Best Bank in Financial Literacy Program – MENA 2023”. KIB was also named the “Best Bank in Kuwait in Terms of Spreading Financial Literacy and Banking Awareness in 2023” by the World Union of Arab Bankers.

On another note, El Saka confirmed that KIB Group worked throughout the year 2023 to develop the approach it adopts in its comprehensive social responsibility program. The Bank renewed its commitment to the principles of environmental, social, and corporate governance (ESG), reflecting its keenness to contribute more efficiently and effectively to achieving sustainable development that encompasses all vital sectors.

Words of appreciation

In his final remarks, Al-Jarrah extended his sincere thanks and appreciation to all shareholders, members of the Board of Directors, and the Executive Management for their continuous support to the Bank, and to everyone who supported its journey. He also expressed gratitude to the Central Bank of Kuwait for its ongoing support, commending its distinguished regulatory and supervisory role. Additionally, he thanked the Ministry of Commerce and Industry for its relentless efforts in supporting commercial and economic activities in the country, and the Capital Markets Authority for its supervisory and regulatory role in supporting an attractive and competitive investment environment in Kuwait.

Al-Jarrah also thanked the esteemed members of KIB’s Sharia Supervisory Board, as well as the Bank’s employees for their outstanding efforts, and its valued customers for their trust and continuous support of its journey and their effective contribution to its achievements. He also commended the efforts made by the State of Kuwait, its Amir, government, and people, to maintain the stability and security of the country.

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