KUWAIT: Al-Ahli Bank of Kuwait (ABK) is pleased to announce strong financial results for the financial year 2023. The bank has demonstrated outstanding performance, reflecting its resilience and dedication to customers and stakeholders.

Key financial highlights

ABK reported a net profit of KD 45.2 million, representing a 40 percent increase in comparison to 2022. This is in addition to a rise in earnings per share (EPS) of 46 percent from 13 fils to 19 fils, reflecting the bank’s strong profitability and shareholder value creation.

Operating profit also witnessed an increase of 7 percent, reaching KD 97.1 million. Total assets stood at KD 6.28 billion, indicating ABK’s healthy financial position and robust balance sheet.

ABK has also maintained steady growth in loans and advances, which amounted to KD 4.25 billion, a growth of 5 percent, while customer deposits stood at KD 3.83 billion, affirming the Group’s reputation as a trusted financial partner. Moreover, the bank’s non-performing loan (NPL) ratio stood at 1.33 percent, with NPL coverage at 445 percent, capital adequacy ratio (CAR) at 16.74 percent, and shareholders’ equity at KD 619.55 million, further underscoring ABK’s financial stability.

In response to the impressive results, Talal Behbehani, Chairman of ABK, expressed his satisfaction, stating, “The growth of our net profits by 40 percent in 2023 reflects our success in navigating the evolving banking sector. We have executed concise and comprehensive plans to strengthen our competitive position in Kuwait and the regional markets where we operate, including Egypt and the United Arab Emirates.”

Emphasizing ABK’s commitment to innovation and customer-centric initiatives, Behbehani discussed the ongoing implementation of the bank’s transformation strategy aimed at enhancing operational processes across all divisions. This approach includes the development of innovative banking services, products, and solutions tailored to meet customers’ dynamic needs.

Behbehani expressed the Group’s commitment to delivering enhanced value to all stakeholders, highlighting the Board’s proposal to distribute cash dividends of 9 percent equivalent to 9 fils per share, as well as bonus shares of 5 percent equivalent to 5 shares for every 100 shares. These recommendations are subject to the approval of the Annual General Assembly.

Furthermore, Behbehani emphasized that the proposed distribution of dividend and bonus shares reflects the Group’s strong financial solvency. He noted that the past year witnessed several pivotal measures aimed at bolstering the Bank’s position, including a successful increase in capital by KD 100 million through a subscription process that garnered substantial interest, exceeding the required amount by approximately 3.3 times from shareholders and investors.

Strong ratings

Behbehani affirmed that the Group has upheld its investment grade ratings from global rating agencies. Notably, ABK secured an A rating from Fitch and A2 rating from Moody’s, reflecting the significant confidence the Group enjoys across various facets of its operations.

Seizing opportunities

Looking ahead, Behbehani affirmed, “ABK remains committed to seizing distinctive opportunities within Kuwait, as well as other markets. The Group is prepared to engage in financing major development projects in alignment with New Kuwait Vision 2035.”

Closing his statement, Behbehani expressed gratitude to all regulatory entities, including the Central Bank of Kuwait, Boursa Kuwait, the Ministry of Commerce and Industry, the Capital Markets Authority, and the central banks in Egypt and the United Arab Emirates, for their steadfast support.

Continued growth

On his part, Abdulla Al-Sumait, Acting Group CEO at ABK, affirmed, “Our financial indicators for 2023 underscore the ongoing expansion witnessed in the Group’s operations. This showcases our ability to adapt to economic shifts and effectively tackle local, regional, and global challenges.” Al-Sumait confirmed the Group’s sustained efforts in implementing digital transformation plans. Particularly, the inauguration of the first hologram-powered digital branch in the Kuwaiti market signifies the Group’s commitment to leveraging cutting-edge banking technologies. Moreover, the Group plans to roll out additional digital branches in the future, aimed at providing seamless service to customers round the clock.

Regional presence

Expanding its regional presence, Al-Sumait emphasized that the Group has bolstered its footprint in Egypt. This expansion includes opening four new branches equipped with state-of-the-art technologies, aligning with the Group’s strategy to fortify its presence and cater to customers across Egypt. Our geographical footprint is instrumental in driving revenue, facilitating loan distribution, and gathering deposits. This success underscores the trust garnered from international companies and investors, reflecting the Group’s growing influence and credibility in the global financial landscape.

In recognition of 2023’s accomplishments, Al-Sumait commended all employees, emphasizing their pivotal role in the Group’s success. He emphasized, “At ABK, we consistently focus on enhancing the capabilities and skills of our workforce and recognize the positive impact this development has on both employees and the overall operations of the Group.”

Environmental, social

and governance (ESG)

The Group understands the increasing significance of ESG principles for investors and all stakeholders. As such, it has integrated them into its operations to contribute to sustainable development and long-term growth.

Corporate social responsibility

The Group has emphasized its prominent role in corporate social responsibility, encompassing support, sponsorship, and implementation of initiatives, activities, and events across various domains. Furthermore, it actively participates in university job fairs to promote education and support students, along with an array of sports activities.

The bank also maintains its commitment to supporting the Central Bank of Kuwait and Kuwait Banking Association’s ‘Let’s Be Aware’ financial awareness campaign. This initiative aims to enhance financial awareness and banking literacy within the community. ABK’s exceptional financial performance in 2023 not only demonstrates its resilience, but also highlights its unwavering commitment to delivering sustainable growth and value for its stakeholders. As ABK continues to strengthen its position in the market, it remains dedicated to driving innovation and meeting the evolving needs of its customers across regions.

Our financial indicators for 2023 underscore the ongoing expansion witnessed in the Group’s operations. This

showcases our ability to adapt to economic shifts and

effectively tackle local,

regional and global challenges

We have executed concise and comprehensive plans to strengthen our competitive position in the Kuwaiti and regional markets where we operate