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Thursday , August 18 2022

KIB records KD 21 mln net profit, up 18% y/y for 2018; EPS 22.4 fils

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Board proposes 11% cash dividends and 4% bonus shares

Sheikh Mohammad Al Jarrah Al Sabah, Chairman of KIB

KUWAIT CITY, Feb 2: Chairman of KIB, Sheikh Mohammed Jarrah Al-Sabah, announced that the Bank recorded a net profit of KD 21 million for the year ended 31 December 2018, registering a growth of 18% compared to 2017. EPS also increased by 18%, reaching 22.4 fils compared to 19 fils during the last year.

■ 20% growth in financing income Al-Jarrah pointed out that the improvement in KIB’s performance reflected positively on its operating income, which reached KD 66.6 million compared to KD 64.2 million in 2017. This was a result of 20% increase in financing income (KD 15 million), to reach KD 89.5 million compared to KD 74.6 million in 2017. Revenue from fees and commissions also increased by 6%, to reach KD 9.9 million compared to KD 9.3 million in 2017.

■ 11% cash dividends and 4% bonus shares proposed for 2018 As for dividends, Al-Jarrah stated that KIB’s Board of Directors proposed payment of cash dividends of 11% of the nominal value of shares (11 fils per share) and 4% bonus shares from issued and paid up capital (4 shares for every 100 shares), subject to the approval of the Bank shareholders’ general assembly and regulatory authorities.

■ 23% increase in financing receivables KIB’s total assets increased by 13%, reaching KD 2.2 billion compared to KD 1.9 billion as recorded at 31 December 2017. This increase is attributable to a growth in the financing portfolio by KD 301 million to reach KD 1.6 billion compared to KD 1.3 billion last year, registering a 23% growth. Additionally, the investment portfolio increased by KD 20 million, or 14%, reaching KD 166 million compared to KD 146 million in 2017.

■ 10% growth in depositors’ accounts Depositors’ accounts rose to KD 1.3 billion compared to KD1.2 billion at the end of the previous year, an increase of KD 115 million representing a growth of 10%.

■ 0.97% NPL ratio

■ Total provision and collateral coverage of 343% KIB significantly improved all its asset quality matrices, achieving an NPL ratio of 0.97%. Total provision and collateral coverage was 343% at 31 December 2018, compared to 193% in 2017.

■ Annualized gross profit rate in Q4 2018 on Arzaq deposit (Kuwaiti Dinars) increased to 3.25%

■ Annualized return in Q4 2018 on Al Boushra Kuwaiti Dinar (3 years) deposits were offered at 3.65%

■ Profits were credited to depositors’ accounts upon announcement of financial results Positive financial results resulted in a steady growth in distributions to depositor’s accounts in 2018, whereby the annualized return on Arzaaq KD Deposit progressively increased to 2.73% in Q1 2018, 2.75% in Q2 2018, 2.81% in Q3 2018, and 3.25% in Q4 2018. Average annualized rate for 2018 stood at 2.886%. Meanwhile, Al Boushra three-year KD deposits were offered an annualized return of 3.65% in Q4 2018 with an average rate of 3.55% for second half 2018. Profits were credited to depositors’ accounts upon announcement of financial results.

■ Al Ithmaar Call Account ideal for companies Furthermore, with regards to KIB’s deposit accounts, Al- Jarrah shed light on Al Ithmaar Call Account, which combines the benefits of both current and savings accounts, and which is offered to corporate customers. This unique account offers corporate customers instant access to funds through unlimited deposits and withdrawals, and provides an opportunity for companies to earn a profit on the account balance. Businesses are able to enjoy greater fl exibility, better returns and unrestricted access to funds at the same time with a cheque book option. Ithmaar Call Account offered an average annual net return of 1.443% at the end of 2018.

■ The highest return in the Kuwaiti market yielded with the Investment Savings Account (KD), with distribution on a quarterly basis The Saving Investment Account also registered notable success in 2018, yielding the highest return in the market, whereby the net annualized return on Saving Investment Account in Kuwait Dinars progressively increased to 1.64% in Q1 2018, 1.65% in Q2 2018, 1.69% in Q3 2018, and 1.95% in Q4 2018. This account is designed specifically for individuals and offers the benefits of savings and investment combined into one single account. It can be opened in Kuwaiti Dinars or in any other major foreign currency.

Moreover, there is no minimum amount required to open the account and profit distribution takes place on a quarterly basis.

Al-Jarrah stated that KIB’s strong financial performance refl ects its strong growth in a number of business areas, in line with its newly implemented strategy. KIB’s new strategy implementation is forging ahead, taking the customer banking experience to the next level and delivering much more than just ‘banking’ in the traditional sense.

Al-Jarrah added: “At KIB, we always strive to meet the ever- changing needs of our customers. For this reason, we adopt cutting-edge technology and digital solutions that are accessible at any time and any place to truly satisfy our customers.” During the annual credit review in 2018, global credit rating agency Fitch Ratings affirmed KIB’s Long Term Issuer Default Rating (LT-IDR) at “A+” with a Stable Outlook. “Fitch” also affirmed the Bank’s Viability Rating (VR) at “bb-“.

Al-Jarrah concluded by lauding the impressive roster of awards and recognitions garnered by KIB during 2018, including: the “Excellence in Islamic Banking Products and Services Award” for the year 2018 from the World Union of Arab Bankers (WUAB); the ‘Best Islamic Bank in Kuwait’ for the year 2018 and the ‘Islamic Banking Chairman of the Year’ for 2018 and ‘Best Customer Acquisition in GCC’ awards from World Finance. KIB also received ‘Best Customer Acquisition in Kuwait’ and ‘Best Branding in Kuwait’ from CPI Financial.

The Bank was also awarded ‘Best Sharia-compliant Bank in MENA’ and ‘Fastest Growing Islamic Bank – MENA’ from Capital Finance International (CFI.co). Al-Jarrah himself was awarded the Red Purple Sash adorned with the Golden Medal Award of Merit and a patent certificate in the category of Wise Leadership in the Arab region from Tatweej Academy for Excellence Awards in the Arab Region. He added that this achievement was made possible due to the combined effort and constant support of KIB’s board of directors, executive management, employees, and customers – all of whom helped KIB achieve this outstanding performance.

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