16 August 2020
Al Ahli Bank of Kuwait (ABK) delivered a Total Operating Income of KD 69.1 Million, with a Net Income of KD 36.4 Million for the first half of 2020. Net Loss stood at KD 4.6 Million for the period ended 30th June. Customer deposits increased by KD 89 Million to reach KD 3.4 Billion, while Shareholders’ Equity decreased by 5 per cent to reach KD 567 Million. Asset quality remained at adequate levels, with the Non-Performing Loan (NPL) ratio at 5.7 per cent, and NPL coverage at 118 per cent. The Capital Adequacy Ratio stood at 18.8 per cent.
Mr. Talal Mohammed Reza Behbehani, Chairman of ABK said, “The economic impact of the ongoing COVID-19 pandemic has necessitated the need for the Bank to take additional prudent provisions against facilities that are or may be adversely impacted in the future.
At ABK, our key priority as always, is the health and safety of all our employees and customers, as we continue to maintain operational stability across our business. Thanks to our strong capital base, stable liquidity and upgraded technological infrastructure, we were able to face this crisis efficiently through our digital services and working remotely. The Bank’s dedicated teams were mobilized to help customers experiencing financial stress by providing financing options and personalised advice. The Bank remains well positioned from a capital and liquidity perspective, which enables us to overcome challenges and help our customers.”
Commenting on the results, Mr. Abdulla Alsumait, Deputy Group CEO said, “The banking sector has been severely affected during 2020 on all local, regional and global levels, due to the prevailing uncertainty regarding the expected time for the end of this catastrophic pandemic affecting health, social and financial levels, including that of the Bank’s.
The Bank’s decision to take additional specific provisions above regulatory requirements during this period is due to the slowdown in business activity, which has negatively impacted our clients. During the second half of 2020, the focus will be on remediation and recovery on facilities, which is expected to positively contribute to our overall 2020 financial results.
Our commitment to significant investments in technology over the past years has allowed us to support our customers without disruption during this challenging time, and it is encouraging to see a very large increase in customers now more digitally active on our secure platform. We have worked hard to ensure stringent measures have been taken in our branches to safeguard the health and safety of our employees and our clients. From the onset of the pandemic, we implemented an internal informative support program for staff. We have also continued our training and development of our employees through online learning & development, while being in constant contact with our teams operating remotely. We take this opportunity to thank our employees who have worked relentlessly whether from the Bank or remotely during these critical times. As we move forward, we will continue to ensure we offer the best-in-class services, and we will further enhance our digital banking solutions to address our customer requirements in this new normal.”
A recent Kuwait Banking Association and Visa survey highlighted that 65% of Kuwaiti consumers prefer digital payments. ABK has expanded its suite of digital services available to customers, positioning the bank to deliver seamless transactions during the nationwide lockdown.
ABK’s credit ratings remained constant, with a rating of A2 from Moody’s with ‘Stable’ outlook and A+ from Fitch with ‘Stable’ outlook. This reflects the bank’s strong capital position, resilient earnings capacity, stable funding and liquidity sources, which are fully compliant with the Central Bank of Kuwait’s conservative and robust regulatory system.
For more information kindly visit eahli.com or contact an ABK customer service agent via ‘Ahlan Ahli’ at 1899899.