(MENAFN - Arab Times) Al Ahli Bank of Kuwait reported its financial results for the financial period ended 30 June 2012.
The operating profits (before provisions) amounted to KD 43.7 million, compared to KD 41.2 million in the corresponding period, at a growth rate of 6 percent.
The net profit amounted to KD 21.2 million after taking precautionary provisions for unexpected difficult market conditions. Earnings per share amounted to 14 Fils with return on assets of 1.4 percent and return equity of 8.7 percent.
Commenting on these financial results for the first half of 2012, Ahmed Behbehani, ABK's Chairman said: "ABK continues to take precautionary provisions to face the difficult market conditions that prevailed during the first half of 2012. The delay in launching new mega development projects and the continuation of impairment of local shares collaterals over the financial crisis period and the continuation of the political instability in some Middle East countries have negatively reflected on the economic activity and the local business environment.
Despite these major challenges, ABK succeeded in facing these difficult economic and financial conditions. The Bank will continue to follow its conservative policy of effective balance sheet management."
"The Bank has a sound capital base and a strong capital adequacy ratio significantly above regulatory norms. This has given the Bank the ability to expand and grow its operations, withstand any unforeseen contingencies provided us the ability to meet Basel III capital requirements,"added Behbehani.
Further, he stated that, "Our core strategy has been adapted to meet the turbulent economic circumstances and we remain focused on minimizing risks across our business areas, improving operational efficiency and enhancing value for our shareholders and customers.
The Bank has also increased its suite of products and services to provide a world class banking experience for its customers, depositors and business partners in the area. In the coming years the Bank will continue to minimize the risks on all our business sectors, and increase the value for our shareholder. Our efforts will focus in achieving the maximum operational efficiency in all our core business units."
In conclusion, Behbehani commented that market conditions remained difficult amid the impairment of shares collateral, delay of launching new development projects, and continuous political instability in the Middle East and the sovereign debt problems in Euro zone, with stagnant markets and slow economic growth.
However, the effective risk management and close monitoring of the loans portfolio will reduce the risks and enhance the sound financial position of the Bank.