27 July 2021
Al Ahli Bank of Kuwait (ABK) today reported a Net Profit of KD 15.1 Million for the first half of 2021, compared to a loss of KD 4.6 Million in the same period of 2020, a turnaround performance. The improvement in performance is attributed to an increase in Group Operating Profits to KD 40.3 Million, from KD 36.4 Million compared to the same period last year, a reduction in cost of funds, and a drop in provisions from KD 37.8 Million in 2020 to KD21.6 Million in the first half of 2021.
Total Assets increased by 2 percent to reach KD 4.8 Billion compared to the same period last year, while Customer Deposits grew by 4 percent to reach KD 3.3 Billion. The Bank’s Balance Sheet remains healthy with strong capital, liquidity and impaired loan coverage ratios. The Non-Performing Loan (NPL) ratio stood at 2.2 percent and NPL coverage at 286 percent. The Capital Adequacy Ratio(CAR) was 17.6 percent while Shareholders’ Equity was KD 509 Million.
Commenting on the results, Mr. Georges Richani, Group CEO of ABK said: “This is a very encouraging performance, considering the challenges faced over the last 18 months. We are making our way back to business as usual in Kuwait, and our ability to report a Net Profit demonstrates the underlying strength of our business model and our agility as an organisation in executing our plans. Among the many highlights of the first half of this year are profitable performances in our Egypt subsidiary and UAE branches, a drop in our cost of funds and a reduction in our NPL’s.
“We take the health and safety of our employees and clients very seriously, and recently held a ‘vaccination drive’ in the bank, and we now have 87 percent of our employees vaccinated. We will continue to encourage our employees to get vaccinated to ensure their safety and the safety of those around them. As Kuwait’s vaccination programme progresses and economic activity picks up, I am confident that we will continue to move forward on solid footing.”
Customer behaviour has changed significantly over the past year as both retail and corporate customers embraced digital banking. ABK invested heavily to meet this evolving customer need. One of the key milestones of the first half for the bank was the introduction of ABKnet, a new online corporate banking service that makes it easy for businesses to manage payments, receivables, liquidity and the changing value of assets through one secure platform. The launch of the service underpins the Bank’s commitment to staying abreast of cutting edge developments and providing best-in-class financial services.
In addition, ABK has maintained strong investment grade ratings of A+ from Fitch and A2 from Moody’s. These ratings capture ABK’s robust capital structure and strong fundamentals, including its capital position, resilient earnings capacity, stable funding, and liquidity sources.
ABK remains focused on raising consumer awareness of banking products and services, through undertaking educational initiatives and supporting the Central Bank of Kuwait and Kuwait Banking Association’s yearlong ‘Let’s Be Aware’ programme.
For more information kindly visit eahli.com or contact an ABK customer service agent via ‘Ahlan Ahli’ at 1899899.