KUWAIT: Chairman of Kuwait International Bank (KIB), Sheikh Mohammed Jarrah Al-Sabah, announced that the Bank recorded a net profit of KD 17 million for the year ended 31 December 2019. Meanwhile, earnings per share (EPS) reached 15.01 fils while registering total operating income of around KD 69 million. Al-Jarrah also noted that KIB's total assets grew by KD 0.52 billion or 24 percent in 2019 to reach KD 2.69 billion compared to KD 2.17 billion in 2018.

This increase was a result of a growth in KIB's financing portfolio by KD 260 million to reach KD 1.87 billion compared to KD 1.61 billion at the end of 2018, achieving a growth of 16 percent as well as growth in investment portfolio by KD 74 million to reach KD 180 million compared to KD 106 million in 2018, achieving a growth of 70 percent due to increased exposure to high quality Sukuk.

Al-Jarrah added that revenue from financing income also increased by KD 14 million to reach KD 103 million, or a 16 percent increase compared to 2018. Additionally, the investment income increased by KD 2.5 million, or 160 percent, reaching KD 4.1 million compared to KD 1.6 million during the previous year.

7% cash dividends
Moreover, Al-Jarrah stated that KIB's Board of Directors proposed payment of cash dividends of 7 percent of the nominal value of shares (7 fils per share) and 5 percent bonus shares from issued and paid up capital (5 shares for every 100 shares), subject to the approval of the Bank shareholders' general assembly and regulatory authorities.

Depositors' accounts increased by KD 151 million or 11 percent to reach KD 1.47 billion, compared to KD 1.32 billion recorded for last year. In 2019, Depositors' Accounts witnessed a strong growth. Annualized return on KIB Term Deposit (KD) was 3.5 percent and Long Term (KD) three-year deposits was 3.7 percent. Similarly, KIB's Ithmaar Call Account offered an average annual rate of return of 1.75 percent at the end of 2019.

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 flexibility, better returns and unrestricted access to funds at the same time with a cheque book option.

Moreover, the Saving Investment Account in Kuwaiti Dinars continue to yield the highest return in the market, at a net annualized return of 2.1 percent in 2019. With this account, individuals can enjoy both benefits of savings and investment. Opened in Kuwaiti Dinars or in any other major foreign currency, the Saving Investment Account does not require a minimum amount to open and profit distribution takes place on a quarterly basis. Profits were credited to depositors' accounts upon announcement of financial results.

Growth trajectory
Al-Jarrah stated: "We continue on our growth trajectory, delivering high-quality products and services that push boundaries amidst a highly competitive market. Our financial performance bears testament to the vision of our strategic direction, leveraging the latest innovations to better serve our customers and adopting digital solutions that deliver on our slogan's promise of being a 'Bank for Life'." In 2019, 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-".

Commenting on the results, Vice Chairman and Chief Executive Officer of KIB, Raed Jawad Bukhamseen, said: "KIB continues to enjoy a stable operating environment in Kuwait. Our latest credit rating reflects our exceptional standing, the strength of our strategic direction and our reputation in the market." Bukhamseen added that KIB had issued a $300 million Additional Tier 1 (AT1) Sukuk during Q2 2019, reflected in the high Capital Adequacy Ratio of 19.24 percent and financial leverage ratio of 11.79 percent as at 31 December 2019. NSFR was maintained at 107.49 percent.

Awards, recognitions
As a testament to its continued efforts in 2019, KIB garnered a number of prestigious local, regional, and international awards that reflected its stellar performance and achievements across various areas and sectors.

KIB was awarded the 'Best Sharia Compliant Bank - MENA 2018' for the fourth consecutive year by Capital Finance International (CFI.co), 'Best Islamic Bank GCC 2018' by World Finance for the third consecutive year, as well as the 'Deal of the Year 2018' award from Islamic Finance News (IFN), for its syndicated Murabaha financing of $250 million. Moreover, KIB renewed its ISO 27001:2013 certification for information security management systems until 2022.

KIB also received the debut 'GCC Best CSR Business Model' award by World Finance, honoring leading financial and investment institution in the GCC. Additionally, the Bank received the 'Best CSR Initiative - Arab Banking' award by The Banking Executive Magazine in recognition of its efforts in improving financial literacy and addressing various challenges in order to improve people's standards of living.

Bukhamseen pointed out that, as a result of its current strategy, KIB continues to grow year after year. The Bank also aims at improving its customer service as well as meeting the changing needs of its customers by adopting the latest digital solutions that are easily accessible at any time and place. He noted that this growth will help KIB in achieving its strategic objectives, cementing its long-standing position as a leading Islamic Bank, building its trust and reputation on its proven track record, as well as its many growth opportunities.