(MENAFN - Arab Times) Boubyan Bank (the Fastest Growing Bank in Kuwait) announced its financial results until the end of Q3 of 2012 which showed a net profit of KD 7.6 million compared to a net profit of KD 6.9 million for the same period of last year; growing by 11%. Chairman & MD of Boubyan Bank, Adel Abdul-Wahab Al-Majed stressed that the Bank's positive financial indicators for the first nine months of this year manifest the continuing success achieved by the Bank on all levels, especially with regard to its market share and competitiveness, both among Islamic banks in particular, and the local banking sector in general.
"Based on the indicators of the first nine months of this year, we expect that year 2012 will be another distinguished year in the Bank's march, namely started in the second half of year 2009, when it adopted a new strategy focused on strong return to the core activities of the banking business," added Al-Majed.
The realization of these profits comes as a product of the developments witnessed in the Bank, key among which was NBK's entry as a major stakeholder in 2009, then the increase of its stake up to 58%, resulting in Boubyan's joining the NBK Group, which resembles a robust addition to Boubyan's successful march.
Al-Majed indicated that the Bank's success in realizing many objectives set in its strategy for the period from 2010 to 2014, depending on regaining profitability by focusing on banking activities including products, services and finance solutions that cater to individual and corporate needs. He clarified that the same is proven by the rise of the Bank's market share of finance during the period from December 2009 to August 2012 from 2.3% to 4.6% as well as the rise of its market share of deposits from 2.5% to 3.9%.
Meanwhile, he referred to the administrative changes recently witnessed in the Bank as manifested in the appointment of two young Kuwaiti experienced bankers as two Vice-CEO's, namely Abdullah Al-Tuwaijri and Abdul-Salam Al-Saleh, which will be clearly reflected on the Bank's performance through the increased dependence on human resources, specifically the national ones, being the key driver for any success, indicating that national labor ratio reached above 64%, which is the highest among all the banking and private sectors in Kuwait. On the other hand, Al-Majed talked about the Bank's plans for expansion and spreading in the different areas of Kuwait, noting that next year will witness the inauguration of more branches in implementation of the Bank's strategy to reach 30 branches at least by the end of 2014.
Al-Majed highlighted some noticeable positive indicators for the Bank including the increase in net finance income to KD 38 million by the end of Q3 of 2012 compared to KD 28 million for the same period in year 2011; growing by 33%, in addition to the increase in customers' deposits to around KD 1.3 billion compared to around KD 1.1 billion; growing by 17%.
In addition, the Bank's total assets as by the end of September 2012 amounted to KD 1.8 billion compared to KD 1.5 billion by the end of September 2011, boosting up by 21%. The Bank's total equity increased to KD 253 million compared to KD 244 million for the same period of last year; resulting in a Capital Adequacy Ratio of 24% against 12%, being the minimum required ratio stipulated by the Central Bank of Kuwait.
Al-Majed added that positive indicators also include a rise in financing portfolio to KD 1.2 billion by the end of September 2012 compared to KD 960 million, growing by 27%, in addition to the continuous rise in the Bank's customer base.
Regional and International Recognition
Concluding his statements, Al-Majed noted the Bank's distinguished achievements realized during the Q1 of this year represented in winning 5 regional and international awards including: Best Islamic Bank in Kuwait for Customer Service for the second year in a row from "Service Hero", Best Islamic Bank in Elite Credit Card Services from "The Banker Middle East Magazine", Best Islamic Bank in Kuwait from "World Finance", Fastest Growing Bank in Kuwait from "The Banker Middle East Magazine" and Best Islamic Bank in Kuwait from "Arabian Business".