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Al Ahli Bank of Kuwait Reports Third Quarter 2020 Results

04 November 2020

Al Ahli Bank of Kuwait Reports Third Quarter 2020 Results Al Ahli Bank of Kuwait Reports Third Quarter 2020 Results

Al Ahli Bank of Kuwait (ABK) reported a total Operating Income of KD103.3 Million, with a Net Income of KD53.2 Million for the third quarter ended 30th September, 2020. The Bank reported a Net Loss of KD7.9 Million compared to a Net Profit of KD15.4 Million in the corresponding period of 2019, due to the drop in interest rates and large provisions taken as a result of the effect of COVID-19. Loans and advances increased by KD107 Million to reach KD3.3 Billion and Customer Deposits increased by KD89 Million to reach KD3.3 Billion. The Non-Performing Loan (NPL) ratio at 5.4 per cent, and NPL coverage at 126 per cent. The Capital Adequacy Ratio (CAR) remained healthy at 18.74 per cent.

Mr. Talal Mohamed Reza Behbehani, Chairman of ABK said: “The unprecedented government measures taken to deal with the COVID-19 pandemic, whether at the International or local level, led to the cessation of business in general. Many business and economic activities have been affected by these strict measures, which had a direct impact on some customers financially, forcing the bank to take additional provisions on the loan portfolio. Nevertheless, ABK has a strong financial position and has a good Capital Adequacy Ratio. We still have the ability to face any challenges that may arise in the future. ABK continues to prioritise its customers while remaining operationally resilient during the pandemic, and during the gradual reopening of various sectors as we entered the new phase of economic activity. While most of the business areas all round were adversely impacted by the pandemic, prompt measures and sound decisions have contributed to enhancing the performance of the bank and staying ahead of the ongoing economic uncertainty. As we move forward, we are well equipped to handle a varied range of scenarios and will operate pragmatically to manage any risks that lie ahead.”

Mr. Abdulla Al Sumait, Deputy Group CEO commented: “The disruption caused by the pandemic has led to economic slowdown and social impediments never witnessed by the world before. However, it has also accelerated innovation across all fields of the banking industry. ABK has been at the forefront in taking initiatives, and collaborating with all its stakeholders to introduce new solutions that reinforces our digital transformation strategy and support customers, employees and partners with uninterrupted access to all banking services during this challenging phase.

The true value of ABK appeared in its continued dedication to innovation and investment in technology. The implementation of sophisticated digital technology enabled the bank to continue operations unhindered. With efficient employees from key business units well equipped to work from home, access was provided across key banking functions including HR, Operations and Sales, and security was bolstered by rigorous cyber security measures.”

The Bank has also continued to invest in employee upskilling, and is using this period to advance towards digital workforce-transformation. ABK’s partnership with Percipio to provide e-learning to its employees demonstrates a commitment to excellence through innovative approaches, and a focus on developing the skills required to operate and compete in an evolving marketplace. Most recently, ABK hosted a virtual graduation ceremony for the 29th Batch of ABK Academy students, who successfully completed a four-week intensive online program.

Moody's Investors Service assigned ABK a rating of A2 with ‘Stable’ outlook and Fitch A+ with ‘Stable’ outlook, a testament to the bank’s strong capital position, resilient earnings capacity, stable funding and liquidity sources, fully compliant with the Central Bank of Kuwait’s conservative and robust regulatory system. ABK was one of only three Kuwaiti banks rated in Global Finance Magazine’s ‘Top 10 Safest Banks in the Middle East’ list published in October 2020.

For more information kindly visit eahli.com or contact an ABK customer service agent via ‘Ahlan Ahli’ at 1899899.