26 November 2019
Al Ahli Bank of Kuwait (ABK) continues to post solid top line results. However, the Bank’s Net Profit for the 9-month period ended September 30, 2019, fell to KD 15.4 million, down 43% from KD 27.1 million in 2018. Earnings per Share also fell accordingly, from 17 Fils to 5 Fils. On the other hand, Operating Profit increased from KD 78.7 million to KD 79.2 million. The capital adequacy ratio stood at 18.3%, which comfortably exceeds the regulatory ratio, while shareholders’ equity was flat at KD 583 million.
The reduction in Net Profit is the result of a very conservative provisioning and write-off policy, which was applied on fully secured but non-performing legacy credits. The asset quality remains very robust, with an NPL ratio at 2.1% and an NPL provision coverage of 285%.
Commenting on the results, Mr. Talal Mohammed Reza Behbehani, Chairman of ABK, said: “We are working with diligence to ensure a steady growth trajectory of our top line across all our business sectors in the regions we are operating in. We continue to make significant progress in ABK-Egypt, where we have witnessed a solid performance during the first nine months of 2019, expanded our footprint and delivered on our strategic goals. We have also seen steady growth in our UAE branches.”
Mr. Michel Accad, Group Chief Executive Officer at ABK stated, “The progress we have made during the first nine months of 2019 is a testament to the commitment of our team to deliver operational excellence and a uniquely great customer experience. We will continue to invest in technology under our digital transformation strategy, as we firmly believe that our focus on pioneering technology solutions will have a positive impact on our customers experience, and will drive our operations forward into 2020 and beyond.”
Under its ‘Simpler Banking’ strategy, ABK continues to deliver innovative services that enrich the customer’s experience, and the Bank is investing in robotic process automation initiatives to support its digital transformation.
ABK was ranked in the Top Ten Safest Banks in the Middle East by Global Finance and The Banker ranked ABK number 2 in the Middle East ‘Movers’ list and no 1 in Capital Adequacy Ratio in Kuwait. Forbes ME ranked ABK in the top 50 banks in the Middle East.
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