Net profit increased by 10%, 22% growth in financing income

Sheikh Mohamed Jarrah Al-Sabah

KUWAIT: Kuwait International Bank (KIB) reported a net profit of KD 12 million attributable to shareholders and earnings per share at 12.82 fils for the first half of 2018. Net profit increased by 10 percent compared to similar period last year.

Total financing income witnessed a robust growth of 22 percent to reach KD 42.5 million compared to KD 34.7 million in first half of 2017, contributing to the increase of total operating income by 13 percent to reach KD 34.5 million compared to KD 30.7 million in 2017.

KIB's total assets witnessed a growth of 10 percent to reach KD 2.1 billion, as compared to the same period of last year. The bank's financing portfolio also increased by 14 percent, or by KD 192 million, to reach KD 1.5 billion compared to the same period of last year. Moreover, the bank's investment portfolio increased by 21 percent to reach KD 151 million.

On this occasion, Chairman of KIB Sheikh Mohammed Jarrah Al-Sabah stated that KIB continues to follow its new customer-centric strategic direction, focusing on offering a next-level customer experience. As a result, depositors' account increased by 11 percent (KD 124 million) to reach KD 1.3 billion, compared to KD 1.2 billion in the same period last year.

Al-Jarrah also pointed out that distributions to depositors' registered a consistent growth whereby the annualized gross return at the end of the second quarter of 2018 on Al-Boushra (KD) three-year deposits was 3.35 percent and Arzaq (KD) deposit increased to 2.75 percent. Similarly, the savings investment account (KD) achieved a net return of 1.65 percent per annum in Q2 2018.

Commenting on the robust financial results, Al-Jarrah said: "KIB is implementing its new strategic transformation: a comprehensive and long-term program which is aimed at transforming the way KIB engages with customers across every touch point, whether through e-communication or face-to-face. This new strategy focuses on offering a next-level customer experience that delivers much more than just "banking" in the traditional sense - but rather establishes KIB as a partner in every aspect of its customers' lives; a true 'Bank for Life'." With this theme, KIB launched its new brand during the second quarter.

Al-Jarrah noted that this newly implemented strategy seeks to revolutionize the KIB customer experience and improve service levels. In turn, this change will reflect positively on the Bank's overall financial performance and in attracting a series of notable achievements and awards.

Al-Jarrah also pointed out that KIB received a slew of awards during the first half of 2018, including the "Best Customer Acquisition in GCC" award for the year 2017 by World Finance. The bank was also recognized at the 2018 Cybersecurity Excellence Awards forum. Most recently, the Bank was awarded 'Best Customer Acquisition in Kuwait' for the year 2018 by CPI Financial. KIB was also recognized by the Bahrain Society for Social Responsibility for its active role in driving positive change and supporting sustainable development programs and social responsibility projects in 2017.