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Al Ahli Bank of Kuwait Announces 17 per cent increase in Net Profit for the First Quarter of 2022

28 April 2022

Al Ahli Bank of Kuwait Announces 17 per cent increase in Net Profit for the First Quarter of 2022

Al Ahli Bank of Kuwait (ABK) today announced its financial results for the quarter ended 31 March 2022. Demonstrating a strong start to the year, ABK reported a Net Profit of KD 8.3 million for the first quarter of 2022, a 17 percent increase over the same period last year. Over the same period Total as-sets increased by 21 percent to KD 5.8 billion, Total loans increased by 19 percent to KD 3.6 billion and customer deposits increased by 29 percent to KD 4.1 billion. The Capital Adequacy Ratio was 17.7 per-cent, while Shareholders’ Equity was KD 522 million.

The Bank’s balance sheet remains healthy with strong capital, liquidity and impaired loan coverage ra-tios. Non-Performing Loan (NPL) ratio stood at 1.48 percent and NPL coverage at 368 percent.

Commenting on the robust results, Mr. George Richani, Group Chief Executive Officer of ABK, said, “We are pleased with the start of the year. The continued execution of our ‘Transform and Grow’ strategy has enabled us to deliver an excellent performance in the first quarter of this year as we maintained steady growth on all key parameters. We also remain focused on sustaining strong returns for our shareholders through prudent financial management. To support our clear momentum and long-term growth, we will continue to invest in digitisation and human capital in order to create a seamless experience for our customers.”

As for ABK-Egypt, the operational profits and net profits for the first quarter of this year have in-creased considerably despite the stressed economic conditions.

The Bank’s regional branches continued to excel in their operations. ABK-DIFC, was awarded a ‘Cate-gory 1 Banking License’ by the Dubai Financial Services Authority (DFSA). ABK-DIFC is now able to offer a vast portfolio of wholesale banking services, including accepting deposits from corporates and finan-cial institutions.

ABK has been rated A2 and A, with a Stable outlook from Moody’s and Fitch respectively. This reflects the Bank’s healthy capital position and excellent liquidity, which is fully compliant with the Central Bank of Kuwait’s conservative and robust regulatory system.

Noting that customers are at the forefront of the Bank’s operations, Mr. Richani added, “We remain committed to our ‘Simpler Banking’ promise. In this quarter, we introduced a suite of innovative ser-vices with unique features and benefits that support customers’ access to seamless banking services. These services included enabling customers to open and manage a term deposit account digitally, ei-ther through eahli.com or through the ABK Mobile Banking app. In addition, the Bank also launched the ‘5-Year Term Deposit,’ a first of its kind product in Kuwait that allows customers to receive interest in advance.”

ABK continues to prove itself as a key catalyst in the financial sector, focusing on employee develop-ment. The Bank organises and runs industry-leading training programs geared toward developing the leadership pipeline at ABK by identifying the talent pool of potential future leaders and empowering them to go through structured developmental streams while undertaking multiple aptitude and psy-chometric assessments to align their performance with their career aspirations. The Bank also actively participates in career fairs to support young talent in Kuwait and assists them in navigating their ca-reers.

In addition, ABK continues its commitment to giving back to the communities in which it operates through several comprehensive corporate citizenship and socially responsible initiatives. The Bank’s support towards initiatives and organizations such as Health Awareness Run organised by Al Amiri Hospital, Kuwait University Medical Association, and a First-of-its-Kind ‘Sustainable Living Event’ are demonstrative of this commitment.

Mr. Richani also reinforced the Bank’s commitment to the ‘Let’s Be Aware’ campaign, Kuwait’s na-tionwide joint initiative by the Central Bank of Kuwait (CBK) and Kuwait Banking Association (KBA). During the first three months of the year, ABK raised financial awareness by highlighting the risks asso-ciated with loan encashment and trading with cryptocurrency. ABK will continue to provide the public with the necessary knowledge to foster financial literacy amongst the community.