Business

Warba Bank reports KD 1.2m net profits in the third quarter 2015

Chairman Emad Al Thaqeb
Chairman Emad Al Thaqeb

KUWAIT: Warba Bank achieved excellent profits in the third quarter exceeding expectations for its financial results for the first nine months of 2015. The Bank achieved net profit of KD 1.251 million compared to KD 318,000 for the same period in 2014. The Bank’s total assets grew by 34% reaching KD 682.760 million compared to KD 507.140 million as on 30 September 2014. The Bank maintains high level of asset quality due to the expansion strategy adopted by the Bank in its pursuit for viable financing opportunities risk studied locally and internationally for making investment and achieving lucrative revenues thus supporting the Bank’s future growth, enhancing its competitiveness and increasing its market share in the Islamic banking industry, which witnesses increasing boom.

The realized profits before provisions increased at 100% reaching KD 3.314 million due to the quality and diversity of the Bank’s assets and retaining high growth rates despite the severe competition in the sector. The Bank’s financing portfolio grew by 42% reaching KD 492.386 million by the end of the third quarter 2015 compared to KD 346.747 million for the same period last year.

Mr Emad Abdullah Al Thaqeb, Chairman of Warba Bank, said: “Warba Bank’s strong performance continues to the third quarter with growth ascending trend reflecting the Bank’s solid financial position, successful and flexible strategy that adapts to accelerating economic and legislative recent changes despite the ongoing political and security turbulences in the region.”
Al Thaqeb noted that Warba Bank’s operational revenue grew by 34% reaching KD 13.283 million by the end of the third quarter 2015 compared to KD 9.891 million for the same period in 2014. He assured that the excellent achieved results are the outcome of the operational activities and strong growth in the business volume and high performance which are the main factors for Warba receiving its first time rating of Baa2/Prim-2 for deposits in local and foreign currencies with a stable outlook by Moody’s International Agency. This rating is due to some other factors of which the most important are the good quality of the financing and investment assets portfolio, the low rate of problem financing and the adequate liquidity levels retained and consistently balanced by the Bank.

He pointed out that receiving that rating is a milestone added to the Bank’s record despite the few years of its operation and in such stage and conditions prevailing in the region that press international rating agencies to be more reserved in giving ratings. He added; “Warba Bank demonstrates high capitalization levels due to its solid capital base and the assets’ quality. The tangible common equity “TCE” to risk weighted assets (RWAs) ratio stood at 23.76% as of 30 September 2015 (29.76% as on 31 December 2014), comparing favorably to local banks in Kuwait average of 13.9% as of December 2014 and to the global median of 13.4%.

He noted that the Bank gives special care for monitoring capitalization levels and capital adequacy ratio in line with the solid and significant growth in the asset portfolios through ICAAP, Stress Testing and Capital Management models and forms. This is for maintaining and controlling the appropriate capitalization levels and sustaining growth rates through diversification of the financed sectors and managing risks associated with the financing operations in addition to mitigating both market risks and operation risks.

Al Thaqeb also mentioned that the Bank has achieved these good results due to the efforts exerted by the executive management, all staff members to whom we express our thanks and the support extended by the Board of Directors. Thus the Bank has become able to enhance its future marketing plan, developing its competitiveness and increasing its market share in the Islamic Banking sector under the severe competition in the market.”

Mr Jassar Dakheel Al Jassar, Vice Chairman & Chief Executive Officer of Warba Bank, said: “Warba Bank maintains a strategy of diversifying investments and income sources by improving business and operational performance across the Bank, including Investment, Treasury, Corporate Finance, Planning, Risk Management, Operations, Retail Banking and Information Technology. He added; “We implement our strategy by continually seizing new lucrative opportunities or introducing innovative new financial products and services that will increase the Bank’s market share specifically in the financing portfolio through providing customers with great offers for satisfying their modern needs and more specifically in the field of ecommerce. The net financing revenues increased reaching KD 8.613 million compared to 6.408 million for the same period last year with increase ratio of 34.4 %.” Al Jassar noted; “Customer deposits increased by 42.2% reaching KD 585.300 million in the third quarter of 2015, compared to KD 411.608 million during the same period last year.

The capital adequacy reached 24.91% as on September 30th 2015 (30.92% in December 31st 2014). This gives the Bank the chance to continue maintaining the high growth rates in the assets portfolio in the short and medium term. It is expected that the Bank will maintain high capitalization ratios despite the continuous decline from the current level due to the expected growth in the financing portfolio.”

Al Jassar highlighted the success of Musawama BCT product for trading in local and global commodities and establishing partnerships with local enterprises to offer financial opportunities to customers for buying their needs. Additionally, the Bank seeks to increase expansion in the regional market by pursuing financing opportunities using its experience in leading and arranging mega transactions of which a syndicated finance amounting KD 105 million for three years have been concluded for one of the leading enterprises in Kuwait. Local, regional and international banks and financing institutions have participated in this syndicated financing transaction a matter that proves the Bank’s ability in arranging such type of transactions despite the economic conditions prevailing in the region. This also proves the Bank’s good reputation in the banking industry.

Al Jassar also pointed out that Warba Bank has recently made great achievements. It has launched new services into the market and conducted a number of promotional campaigns and offers to alleviate the economic burden on customers, for example, the launch of credit card offers allowing the customers to recover amounts of up to 100% on the value of their purchases. The Bank also launched a campaign for “Auto Installment Payments at Cash Price” in collaboration with Toyota, Ford and Honda agents in the State of Kuwait.

Al Jassar pointed out that Warba Bank continues to pay attention to the customers through introducing new products and services at various delivery channels in addition to developing the electronic banking services on the Internet through its Website, Call Center and smart devices to meet all customer requirements and to keep pace with the latest technological development. This gives customers the opportunity to communicate with the Bank in the most convenient and fastest way. We also continue our expansion policy by increasing the number of our branches to cover most areas of Kuwait. It is worth mentioning that the Bank will be opening new branches before the end of 2015, God willing.”

Back to top button