AUB posts net profits of KD 36.4 mln up by 16.7% and higher EPS by 19% in 2022

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KUWAIT CITY, Feb 6: Ahli United Bank K.S.C.P. (AUBK) announced its results for the financial year ended on 31 December 2022; the Bank has recorded a net profit for 2022 amounting to KD 36.4 million which is higher by 16.7% than KD 31.2 million of 2021.

The Bank’s total assets has recorded KD 4.71 billion at the end of December 2022. The net financing receivables portfolio has grown by 2.1% to reach to KD 3.41 billion as of December 2022 (2021: KD 3.34 billion) while customer deposits have also grown to reach to KD 3.24 billion against KD 3.11 billion reported last year representing a growth of 4.2%. The shareholders’ equity has recorded KD 0.49 billion at the end of 2022 against KD 0.47 billion reported last year representing a growth of 4.3%, while Earnings per Share (EPS) recorded 13 fils at the end of the year 2022, compared to 10.9 fils in 2021.

The Board of Directors has recommended a distribution of cash dividend of 8% (8 fils per share). The proposed cash dividend is subject to the Annual General Meeting’s approval.

Dr. Anwar Al-Mudhaf

Financial results

Commenting on economy and results, Dr. Anwar Al-Mudhaf, Chairman of Ahli United Bank, said: Despite the reality we live in today during a time when the world is grappling with a continuous state of uncertainty, coinciding with many shocks such as inflation, the Russian-Ukrainian war, supply chain disruptions, the repercussions of the Covid-19 epidemic, and many other influential forces that amplify each other ,resulting raising interest rates, the Bank continued to strengthen its position in the Kuwaiti market and was able to maintain the solidity of the Bank’s financial position and its ability to achieve accepted  growth rates .

Dr. Al-Mudhaf explained that the Bank maintained a solid capital adequacy ratio (CAR), before dividend, of 18.4% as of 31 December 2022 exceeding the level required by the regulator. Further, the Bank has maintained a conservative approach of risk management, which contributed to improving the quality of its assets and reducing the irregular financing ratio to 1.76% at 252% coverage ratio including collaterals at the end of 2022.

Dr. Al-Mudhaf pointed out that Ahli United Bank is unflinchingly committed to enhancing the values for the benefit of its distinguished shareholders and valued customers. This commitment is evident in the Bank’s approach aiming to enhance the efficiency and resilience of its financial position, as well as the quality of managing its credit portfolio. This approach, along with the solid liquidity management, contributed to achieving significant growth in the Bank’s profitability, which positively impacted all financial indicators.

Dr. Al-Mudhaf highlighted that AUB is steadily moving forward at an accelerated pace to achieve digital advancement that meets customer aspirations. He stated that AUB reported a significant annual growth across key metrics, on grounds of the provision of cutting-edge experiences and services to the Bank’s customers. This is coupled with continuing promotional campaigns and digital marketing campaigns to interact with customer growing base.

Dr. Al-Mudhaf emphasized that AUB is firmly committed to promoting the implementation of sustainability and environment and social governance framework. This strategy is based on practices that upsurge the positive impact on the Kuwaiti environment and society. It also reflects positively on achieving our goal in sustainable development.

Prominent Social Role

Dr. Al-Mudhaf stressed that AUB, being the first bank to run its operations in Kuwait more than 80 years ago, has been able to play a prominent role in social work. Over these long years, AUB has proven its ability to provide a role model in social responsibility and sustainable development. Moreover, it provides a ground-breaking and distinguished experience in social responsibility, as are its enduring achievements at all fronts.

Dr. Al-Mudhaf added that in 2022, AUB continued to launch targeted social-based initiatives and sponsored health, social and charitable activities, which delivered a positive impact on all segments of society.

Thanks and Appreciation Message

In conclusion, Dr. Al-Mudhaf extended deep appreciation to all those who contributed in achieving these notable financial results. He delivered special thanks to the Bank’s shareholders for their incessant trust, and to the Bank’s employees who exhibited great commitment and dedication. Further, he conveyed grateful appreciation to the Central Bank of Kuwait for its continuous support. Finally, he presented sincere gratitude to the Bank’s customers for their steadfast loyalty, stressing the Bank’s commitment in providing them the best banking experience.

Jehad Al-Humaidhi

From her side, Mrs. Jehad Al-Humaidhi, Board Member and Chief Executive Officer of Ahli United Bank said: “Ahli United Bank has achieved robust financial results in 2022. It is a great pleasure to announce our growth in profits driven by a strong operating performance. AUB managed to rise to the pinnacle of the banking industry and to maintain its unique position in Kuwait through providing financing solutions at competitive profit rates.”

Jehad added that the balanced performance of the Bank during 2022 achieved a decent growth in all business sectors with earing per share recording a new height of 19% positive growth after recording a negative growth in EPS in 2021 of -7%. The balanced growth in all sectors, Wholesale, Retail, Private Banking and Wealth Management, has reflected a diversified sources of income and risk moderates despite that fact that the impairment provision base was supported further in 2022 by an 2.8% higher charges than 2021.       

Al-Humaidhi added that the flexibility of the bank’s business model, its ability to adapt to various circumstances, the unique position it enjoys among its customers and shareholders, the Bank’s long history and its superior ability to continue and overcome difficulties, was the main reason for the bank’s sustainable growth.

Ground-breaking banking experience keeps up with digital acceleration

Al-Humaidhi underlined that AUB pursues its accelerated steps to provide a digital banking experience that keeps up with digital acceleration in all banking and financing services. Through this approach, AUB aims to meet customer aspirations and to deliver an outstanding banking experience that provides seamless and safe financial services and products. It also concentrates on accelerating the pace of innovation of digital banking solutions to remain focused on the road ahead.

In this context, Al-Humaidhi pointed out that in 2022, AUB launched a number of digital banking services. These advanced services provide innovative banking dimensions to meet customer current and future needs. They also intend to enhance the digital banking services delivered by the Bank to its customers. In 2022, more banking services were launched through AUB mobile App. The Bank also launched the improved B2B Mobile app for corporate cash management. Furthermore, AUB also launched “ApplePay” service which provides a fast, easy and secure way of payment.

Al-Humaidhi added that AUB is continuing to develop and enhance its operations through a high-quality technological environment to meet customers’ aspiration. At the same time, it focuses on keeping abreast of the rapid and growing development in digital revolution as well as securing safe and reliable technological platforms for both customers and staff.

Strong presence in Banking Sector through 8 Prestigious Awards

Al-Humaidhi added that AUB underlined its strong presence in the Islamic Banking sector in Kuwait by receiving 8 notable awards in 2022 from several prestigious international agencies, in many areas of the banking business.

Al-Humaidhi said that AUB takes pride in these awards, highlighting that they are a recognition of the confidence gained from prestigious international financial entities. These awards are the fruits of the hard work made by AUB management with the aim to provide the best cutting-edge banking solutions and services. These advanced solutions have been well received by customers as they meet their banking aspiration, which reflects the Bank’s enduring commitment to customers.

Maintaining its position as Employer of Choice

Al-Humaidhi added that AUB continued its efforts in 2022 to maintain its unique position as Employer of Choice in the Kuwaiti banking sector based on its approach and strategy that care for selecting and attracting the best banking talents. The Bank also seeks to advance their skills and capabilities through integrated training and development programs, aiming to advance their career so that they can play their role in forward-moving the Kuwaiti banking sector.

Notable role in its ongoing support of the “Let’s Be Aware” campaign

Al-Humaidhi emphasized that in 2022, AUB continued its support to the banking awareness “Let’s Be Aware” campaign.  The “Let’s Be Aware” campaign has been launched by CBK in cooperation with the Kuwait Banking Association to promote financial culture and raise awareness among different segments of society.

Al-Humaidhi expressed her sincere thanks and appreciation to the Central Bank of Kuwait and other regulatory authorities for their diligent efforts to support the banking system. She expressed her deep gratitude to AUB’s Board of Directors and distinguished shareholders. She also conveyed grateful appreciation to the Executive Management team and all the Bank’s employees for their dedication and tireless efforts in serving the Bank’s customers in a manner befitting the unique position of Ahli United Bank.

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