Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait - ABK posts KD 35.4 mln net profit in 2013   Join our daily free Newsletter

MENAFN - Arab Times - 23/03/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Al Ahli Bank of Kuwait announced a net profit of KD 35.4 million for the financial year ended Dec 31, 2013, signifying an 18 % year on year increase. At the Annual General Meeting held at its premises, the bank declared that earnings per share rose by 16 % from 19 fils to 22 fils. Ahmed Yousuf Behbehani, Chairman of the ABK Board of Directors stated that total assets at year end stood at KD 3.19 billion, 7 % greater than 2012 with an increase in Kuwait government security bonds, loans and advances, investment securities and other assets while customer deposits marked a 6 % rise to KD 1.95 billion and shareholder's equity received a 5% boost to KD 540.8 million with the bank earning higher returns on assets of 1.15% and on equity of 6.70%.



Behbehani highlighted the major achievements of the year, one of them being an increase in operating profits to KD 81.54 million, a marginal increase from 2012's KD 80.41 million 'despite the subdued economic environment in Kuwait and continued uncertainty in the global markets'. The total liabilities augmented from 2012's 2.45 Billion stood at 2.65 billion at year ended Dec 31 2013. ABK maintained a capital adequacy ratio of 26.93%, highest among local banks and ahead of international peers, Behbehani attributed this to disciplined balance sheet management. "Consequently, ABK has the capacity and resilience to absorb losses, and sufficient capital to expand", he remarked.



He added, "The robustness of ABK's core businesses and their impressive revenue gathering capacity have proven their value to our overall performance. In addition, continued improvements in operating efficiency and careful cost management have resulted in a stable cost to income ratio that compares favourably with our peers." The bank also reduced its NPL ration from 5.25% in 2012 to 2.59% in 2013. Based on the above figures, the AGM approved the proposed distribution of 13% cash dividend i.e. 13 fils for the share's nominal value for 2013. Behbehani shared that conscious efforts had been made to remain conservative in the bank's provisioning policies which helped further improve its asset quality metrics. ABK has succeeded in building up adequate precautionary general provisions to cope with unforeseen contingencies, he revealed.



Speaking of the Central Bank of Kuwait's revised corporate governance guidelines which came into effect last year, he shared that since ABK's philosophy has always been to adhere to international standards, the bank already had a high level of compliance with the new guidelines. Furthermore, three institutional developments that strengthened the bank's governance was the additional of two new Directors on the board, two new Board committees and restructuring the Bank's management committees for greater efficiency, accountability, and transparency.



Colin Plowman, Chief General Manager and Chief Executive Officer of ABK, stated that the first 12 months of the 2013-15 three year plan saw most of the Bank's frontline businesses contribute to an upward trend in profit and net growth, "We recorded market leading growth in the retail segment; treasury and investments performed very well; and international banking continued to expand and diversify its business." He noted that growth in the above had helped offset sluggish corporate demand. Plowman added, "Retail Banking maintained its growth of recent years, with card products performing particularly well."



He shared that a credit scoring system that cut approval times for customers was worked on by the Retail and IT departments, and announced the launch of mobile banking in 2014. It was also pointed out that ABK had received the "Best Customer Service" in retail banking category of the Service Hero awards, an award for the best website and obtained ISO (9001-2008) Behbehani iterated that the bank's performance had resulted in rating agencies, Moody's and Fitch, maintaining its investment grade status with a stable outlook. Moreover, Fitch upgraded ABK's rating from A- to A. "This underlines our intrinsic strengths of high liquidity, good income generating capacity and prudent management strategies", he said.



In regard with the bank's corporate social responsibility, Behbehani stated ABK's support for various activities ranging from health and education to sports and environment. For its efforts, the bank received the Golden CSR Excellence Award from the Arab Organisation for Social Responsibility for the second consecutive year. "Overall, ABK is well positioned to benefit from any uplift in the economy, having capacity to grow the balance sheet and with resilience to absorb contingencies and maximize shareholders' value", he said.




 


Arab Times




  MENA News Headlines
 Mar 1 2015 - Nbad- USD48t needed to meet global power demandMENAFN
(MENAFN) Energy demand in the Gulf to triple in the next fifteen years far outstripping today's supply, a report released by National Bank of Abu Dhabi (Nbad), Gulf News reported.It figures out that ...

 Mar 1 2015 - Bahrain, Russia to boost trade tiesMENAFN
(MENAFN) The Bahrain side of the Bahraini-Russian Joint Business Council held its first meeting, under the chairmanship of BCCI Chairman, Saudi Gazette reported.However, hailing the relations between ...

 Mar 1 2015 - Abu Dhabi's Eagle Hills plans new USD80b Egyptian cityMENAFN
(MENAFN) Abu Dhabi-based developer Eagle Hills is set to build a new city worth USD80 billion near Cairo, Arabian Business reported.The new city is set to include an airport, hotels, and a mall as ...

 Mar 1 2015 - S. Korean President Starts Mideast TourQatar News Agency
(MENAFN - QNA) South Korean President Park Geun-hye left for Kuwait on Sunday on a nine-day, four-nation trip to the Middle East expected to focus on wide-ranging economic cooperation beyond energy ...

 Mar 1 2015 - Car bombs kill27 in BaghdadArab News
(MENAFN - Arab News) BAGHDAD: Car bombs targeting a crowded market and Shiite militia checkpoints north of Iraq's capital killed 27 people Saturday authorities said as the country's prime minister ...

 Mar 1 2015 - Kuwait reopens Yemen embassy in AdenArab News
(MENAFN - Arab News) KUWAIT CITY: Kuwait decided to reopen its Yemeni embassy in Aden instead of the militia-controlled capital Sanaa.'In the framework of supporting constitutional legitimacy in ...

 Mar 1 2015 - Saudi- 3000 vacanciesto be availablein next episodeof 'Jobs on Air'Arab News
(MENAFN - Arab News) There will be 3000 job opportunities for unemployed young male and female Saudis as well as for foreigners during the tenth session of 'Jobs on Air' on Al Danah television ...

 Mar 1 2015 - Saudi- Al-Samaani: Judicial system impartialArab News
(MENAFN - Arab News) Saudi Arabia's justice system is based on the provisions of Islamic law derived from the Holy Qur'an and the Sunnah (tradition) of the Prophet (peace be upon him). This ensures ...

 Mar 1 2015 - Saudi- Many Madinah sites need better careArab News
(MENAFN - Arab News) Several residents in the city of Madinah have drawn attention of the competent authorities toward multiple Prophet's heritage sites and relics in the area including wells ...

 Mar 1 2015 - Small to medium companies not fit to employ Saudi womenArab News
(MENAFN - Arab News) Business sectors in the Kingdom with less than 500 workers are not fit to employ women at least according to assessments made by the Ministry of Labor's adviser.In his report the ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help