Kuwait City, July 27: Commercial Bank of Kuwait announced a net profit of KD 62.7 million for the half year ended 30 June 2024. Operating profit before provisions at KD 61.1 million compared to KD 57.1 million for the same period of last year, higher by 7%. Earnings per share for the current period is 34.9 fils (June 2023: 36.8 fils).

Regulatory Ratios:

Regulatory ratios remained strong and continue to be well above the Central Bank’s statutory requirements. Capital Adequacy Ratio is at 16.1%, Liquidity Coverage Ratio 237.8%, Net Stable Funding Ratio 115.0% and Leverage ratio 9.9%.

Operational Performance:

Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, is pleased to present the Bank’s results for the first half of 2024. Operating profit before provisions reflects a healthy year-on-year growth of KD 4.0 million (7.0%) driven by growth in loans by KD 355 million, higher benchmark interest rates and 8.5% increase in fee income. Net Profit at KD 62.7 million is lower by KD 6.5 million (9.4%). Last year included higher loan loss recoveries mainly resulting from a legal verdict.

Performance Ratios:

Sheikh Ahmad emphasised that Al-Tijari continues to report healthy performance ratios relative to its history and this stems from the strategic initiatives taken in the previous years. Net interest margin 2.76% (HY 2023: 2.69%), Return on Equity 19.0% (HY 2023: 20.8%) and Return on Assets 2.8% (HY 2023: 3.3%). Cost to income ratio 32.0% continues to be one of the lowest amongst Kuwaiti banks.

Business updates:

Sheikh Ahmad added that the Bank is equipped with the latest technology and digital services, enabling it to continue its successful digital transformation journey by improving its digital platforms and introducing new customer services.

Al-Tijari enhanced its communication with customers through presence at several commercial complexes and malls through a comprehensive outreach plan with an aim to introduce customers to the integrated products and digital services provided by the Bank. This personal contact helps to spread banking and financial culture amongst various segments of the society under “Let’s Be Aware” campaign launched by the Central Bank of Kuwait in cooperation with Kuwait Banks Association. The Bank also uses its electronic channels and accounts on social media networks to educate customers on the importance of protecting their banking information against fraud attempts.

During Q2 2024, K-Net launched a new instant payment system “WAMD”. Six banks including Al Tijari were the early adopters and launched the service through mobile banking applications. Customers can send and receive money instantly without any charges, 24/7.

Customers can now pay telecom bills through the mobile application. In addition, many other features have also been added to the Bank’s mobile application.

The “Business Islands” which are now available in most of Al-Tijari branches has been updated with additional features including enhanced authentication process for customers by using civil id.

Diligent Efforts for Raising Customer Awareness: 

In Light of  the “Let’s Be Aware” Campaign, Commercial Bank of Kuwait continues its diligent efforts for raising customer awareness with the advent of summer and travel season, Al-Tijari is keen on encouraging customers to use their banking cards safely.  Cardholders should continuously check the validity of their cards and credit limits before travel, and make sure to update their contact information at the Bank. They should also be careful not to write down the password (PIN Code) or any personal information anywhere, lest fraudsters access such information. Customers should never share their password or the one time password (OTP code) with anyone, and to read the content of the received messages containing the (OTP) to check the name of the relevant store Customers should not use public Wi-Fi services in completing their banking transactions if the safety of the network is not trusted. The Bank stressed the importance of downloading CBK Mobile App on smartphones for more information on how to use cards during travel.  When using ATM machines, customers should always ensure there are not any unusual devices or information hacking devices installed on the ATM. In case of card loss or theft or having any card issues, it is essential to contact the Bank’s customer service immediately.

Sustainability and Social responsibility

Al-Tijari continues to show a strong commitment towards its sustainability and social responsibility. The Bank hosted the Integrated Care Association for Special Needs at its branches where a workshop was organised on environment sustainability. The workshop discussed the importance of recycling materials for environment preservation.

The Bank also encouraged its employees to adopt the recycling approach by allocating a container in the Bank’s branches and headquarters where old electronic devices, wires and other unused children toys were placed by the Bank’s employees. 

In celebration of Eid, the Bank visited the Paediatric department in Al-Amiri Hospital to congratulate and share the festivities with the children.

The Bank also distributed Iftar meals to construction and cleaning workers in different areas on the Holy Day of Arafa within the framework of “Hawwin Alaihom” campaign.

Under its social responsibility and for encouraging staff to adopt a healthy lifestyle, the Bank hosted a team of medical professionals to conduct medical tests including blood pressure and diabetes, and advising on improving lifestyle. ‘Lunch and Learn’ workshop was also organised whereby staff were informed about the benefits of having a healthy diet. In addition, the staff were also trained to cook healthy food for their day to day life.

Thank You Note

Sheikh Ahmad concluded by extending his sincere appreciation to the Central Bank of Kuwait and other regulatory authorities for their supervision and support to the Banking sector and to the Bank’s Executive Management as well as all staff for their dedication and rigorous efforts to make Al-Tijari as Bank of Choice.