(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, July 18 (KUNA) -- Kuwait International Bank (Al Dawli) announced a net profits of KD 12 million, a 15% increase, during the first half of 2016, compared to KD 10.5 million in the corresponding period of 2015.
Chairman of Al Dawli Sheikh Mohammad Al-Jarrah Al-Sabah said in a press statement, on Monday, that this growth is attributable to an increase in the financing income by 19% i.e. KD 5.5 million to reach KD 34.3 million compared to KD 28.7 million for the corresponding period last year.
This has reflected positively on earnings per share (EPS) which also increased by 15% to reach 12.8 fils compared to 11.2 fils, he added.
Sheikh Mohammad Al-Jarrah also indicated that Al Dawli's assets as of 30 June 2016 increased by KD 141 million, i.e. by 8% reaching KD 1.83 billion compared to KD 1.69 billion as at 30 June 2015.
This increase came as a result of a growth in the financing portfolio by KD 98 million reaching KD 1.21 billion, compared to KD 1.11 billion, 9% higher than the corresponding period last year.
Depositors' accounts rose to KD 1.12 billion compared to KD 990 million for the same period last year with an increase of KD 128 million representing 13%. Annualized return on equity (ROE) reached 9.7% compared to 8.7% of the same period last year.
With regard to asset quality, Al Dawli's outstanding performance during first half of 2016 reflected positively on NPLs which remarkably decreased by 69% to reach 1.39% compared to 4.42% for the same period last year.
The total provision coverage ratio has also increased to 219% compared to 74% for the same period last year. Moreover, total provisions and collaterals coverage ratio increased to 357% compared to 195% for the same period last year. In compliance with CBK regulations on Basel III, Al Dawli continued to maintain a high capital adequacy ratio (CAR) of 20.6% while the financial leverage ratio was 10%. The annualized profit rate of Arzaq KD deposits reached 2.25% in the second quarter 2016.
Finally.
Sheikh Mohammad Al-Jarrah said that Al-Dawli is committed to its strategy aiming at responding to shareholders' and customers' aspirations based on its vision to become the "Islamic Bank of Choice".
This was initiated last year and planned in three phases. The second phase of the strategy is being implemented during the current year, where Al Dawli drives the strategy through improved products and enhanced services to its customers and will further enhance and improve its internal operations, to achieve significant competitive advantage by 2017. (end) nfm