Al Ahli Bank of Kuwait Group First Half Financial Results

  Al Ahli Bank of Kuwait (ABK) recently announced its financial results for the first half of the fiscal year 2023 ended 30 June 2023. ABK reported a Net Profit of KD 23.9 million compared to KD 18.4 million in the same period in 2022, reflecting a 30% increase. Earnings Per Share stood at 11 fils compared to 8 fils in the previous year.

ABK reported an Operating Profit of KD 44.3 million, Total Assets of KD 6.3 billion, Customer Deposits of KD 4.0 billion, and its loan portfolio totaled KD 4.3 billion. The Non-Performing Loan (NPL) ratio stood at 1.36%, NPL Coverage at 376%, Capital Adequacy Ratio (CAR) at 15.06%, and Shareholders’ Equity at KD 497.5 million.

Financial Performance Commenting on the results, Mr. Talal Behbehani, Chairman of ABK, stated, “ABK’s performance in the first half of 2023 is a result of proactive financial management focused on achieving sustainable growth and enhancing value despite the economic challenges prevalent in the local, regional and global markets. Our strategy focuses on enriching customer experience and simplifying our offerings by adopting the latest digital and technological solutions. We also continue to enhance and build on cross-border offerings for our customers across the markets in which we operate and continue to capitalize on growth opportunities in these markets.”

Al Ahli Bank of Kuwait Group First Half Financial Results: KD 23.9 Million Net Profit – 30% Growth  He added, “We remain prudent and cautious in managing our risks, securing the interests of our shareholders and stakeholders, protecting the intrinsic value of our franchise, and enhancing the solidity of our balance sheet. Our investment grade credit ratings by Moody’s (A2) and Fitch (A) are a reflection of the confidence ABK has secured at the global level.”

“I would like to also reaffirm our preparedness to actively contribute to development initiatives aligned with Kuwait Vision 2035 and our determination to foster successful outcomes in line with the national strategic vision,” continued Mr. Behbehani.

The Chairman expressed his appreciation to the central banks and regulatory authorities in Kuwait, Egypt and the UAE, alongside the Dubai International Financial Centre (DIFC), for their ongoing support and guidance. Mr. Behbehani also lauded the efforts of ABK’s shareholders, Board of Directors, Executive Management and staff for their persistent dedication in ensuring that ABK continues to demonstrate high levels of performance.

Mr. Abdulla Al Sumait, Acting Group CEO at ABK, reiterated, “Our financial results depict notable growth across several key financial indicators, reflecting the effectiveness of our implemented strategy.”

He continued, “Our commitment to expanding our market presence remains unwavering, encompassing both individual and corporate clients. We ensure to meticulously analyze any developments to proactively devise strategies to effectively navigate obstacles that may arise.”

In addition to the strength of ABK’s strategy, Mr. Al Sumait attributed the positive financial results to the consistent efforts of employees. He emphasized, “ABK places a significant emphasis on attracting top talent to join our workforce. We also continue to place particular focus on increasing the percentage of national employment, specifically amongst the youth segment. This is in addition to women empowerment with an aim of achieving gender equality in the workplace.”

He shared that it is crucial to continuously develop employees’ skillsets and capabilities, foster innovation, and provide training sessions with specialized institutes. Highlighting their importance, he said, “These efforts are imperative for developing a conducive work environment, enhancing employee productivity, and strengthening competitiveness in the banking sector.”

Environmental, Social, and Governance (ESG) Considerations Recognizing the increasing importance of ESG factors to investors and stakeholders, ABK has diligently endeavored to incorporate these principles into its business.

ABK disclosed its firm belief that robust ESG practices have a direct and positive impact on its financial results. This contributes to sustainable development, ultimately fostering long-term growth.

Through the integration of ESG into our operations, the Group strives to minimize environmental impact, promote social wellbeing, and deliver responsible governance practices. This, in turn, greatly contributes to positioning ABK as a responsible and ethical financial institution.

Digital Transformation ABK strongly believes that digital transformation is vital when it comes to empowering banks to meet changing customer expectations, drive operational efficiency, reduce costs, enhance security, and explore new business opportunities.

“This is an important enabler to offer seamless, convenient, and personalized service to customers,” said Mr. Al Sumait. This was exemplified in the recent inauguration of ABK’s digital branch in Al Khiran Mall, boasting cutting-edge technology, alongside the launch of various digital services. He continued, “These endeavors aim to enhance customer confidence, trust, and convenience by simplifying banking transactions.”

Corporate Social Responsibility ABK shed light on its leading role in corporate social responsibility, which includes supporting, sponsoring, and implementing various initiatives, activities, sports, and wellness events. This includes participation in career fairs at universities to support students and education where involvement in such events reflects its pledge to give back to society and strengthen its presence in the community.

ABK also continues its support of the 'Let's Be Aware' banking awareness campaign. In collaboration with the Central Bank of Kuwait and Kuwait Banking Association, the goal of the campaign is to raise financial and banking awareness among customers and promote financial inclusion in society.

ABK was recognized as one of the top three contributors to the campaign's success in 2022, as announced earlier this year. As such, ABK remains dedicated to spreading relevant information through its branches, social media platforms, and other potential opportunities.

Since its establishment in 1967, ABK has progressed to become one of the leading Kuwaiti banks in the region that is today known for offering a simpler banking experience. The Bank offers personal, corporate, and private banking of which includes a wide array of products and services. ABK also provides a broad range of local, regional, and global investment solutions and services through its subsidiary, ABK Capital. Enjoying equal stability and strength, the Bank also offers the convenience of banking across the region, servicing other markets in Egypt and the UAE.