(MENAFN - Arab Times) Sheikh Mohamed Jarrah Al-Sabah, Chairman of Kuwait International Bank, announced that the Bank realised a net profit of KD 13.2 million for 2012 against KD 10.8 million for 2011, an increase of 22 percent.
With earnings per share of 14.1 fils for 2012, up 22 percent from the 11.6 fils of 2011, Al-Jarrah remarked that the Board has decided to recommend to the General Assembly a cash dividend of 7 percent of the nominal value per share (7 fils per share) to shareholders registered in the Bank's records on the date of the General Assembly meeting. This recommendation shall be subject to the approval of the General Assembly and concerned parties.
Al-Jarrah noted that operating income of KD 44.9 million was 14 percent higher than the KD 39.2 million of 2011 and that such outstanding performance and growth directly reflected the Bank's strategy of sustainable and fair growth. The net profit was declared after taking precautionary impairment provisions of KD 7.7 million which included additional prudent provisions of KD 4.4 million for the year. Al-Jarrah also stated that during 2012 Al-Dawli managed to diversify its sources of income with revenues from fees and commissions up 39 percent. Net financing income up 15 percent on 2011. Return on assets increased to 1.11 percent in comparison with the 0.96 percent of 2011. Return on equity increased to 6.21 percent up from the 5.37 percent of 2011.
The Bank noted that these positive results were achieved despite difficult circumstances during 2012, with the slowdown of Kuwait Economy performance and the continuing structural imbalance there which negatively impacted the local economy. The factors which could activate the private sector role include implementing the development plan and increasing government capital expenditure. Al-Dawli's total assets as on December 2012 were KD1,249 million compared to the KD1,118 million of 2011, an increase of 12 percent. Al-Jarrah noted that growth in financing receivables of 13 percent was matched with 13 percent growth in depositor accounts. The capital adequacy ratio at December 2012 of 25.23 percent comfortably exceeds the minimum regulatory requirements of 12 percent. Al-Jarrah confirmed that during the year Al-Dawli was able to reduce non performing financing receivables to 8.3 percent of the portfolio down from 11.2 percent through management's continuous efforts to mitigate these risks.
Al-Jarrah noted that such promising indicators of acceptable and stable growth reflect the Bank's success in implementing its business plan and realising its strategic targets which include: diversifying the financing portfolio, increasing financing to small and medium projects and expanding the branch and ATM networks throughout Kuwait. With the inauguration of 5 new full service branches 2012 saw significant growth in the branch network. Al-Dawli now has 23 branches to provide its corporate and retail customers with a wide spectrum of Islamic banking products and services throughout Kuwait. The Bank's network of ATM machines increased by 66 percent during 2012 with more ATM machines installed in customer convenient locations.