Kuwait International Bank net profit up 22pc
Kuwait, February 9, 2013
Kuwait International Bank, one of the leading Islamic banks in the country, has registered a net profit of KD13.2 million ($46.7 million) for 2012, up 22 per cent compared to KD10.8 million a year ago.
The net profit was declared after taking precautionary impairment provisions of KD7.7 million which included additional prudent provisions of KD4.4 million for the year, said the Kuwaiti bank.
Announcing the results, KIB chairman Sheikh Mohamed Jarrah Al-Sabah said the bank's operating income surged 14 per cent to KD44.9 million compared to KD39.2 million in 2011.
With earnings per share of 14.1 fils for 2012, up 22 per cent from the 11.6 fils of 2011, Al-Jarrah revealed that the board has decided to recommend to the General Assembly a cash dividend of 7 per cent 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.
Al-Jarrah also stated that during 2012 Al-Dawli managed to diversify its sources of income with revenues from fees and commissions up 39 per cent. Net financing income rose 15 per cent on 2011.
Return on assets increased to 1.11 per cent in comparison with the 0.96 per cent of 2011. Return on equity increased to 6.21 per cent up from the 5.37 per cent of 2011, said the official.
Al-Jarrah pointed out that such outstanding performance and growth directly reflected the bank’s strategy of sustainable and fair growth.
"These positive results were achieved despite difficult circumstances during 2012, with the slowdown of Kuwait Economy erformance and the continuing structural imbalance there which negatively impacted the local economy," he noted.
The factors which could activate the private sector role include implementing the development plan and increasing government capital expenditure.
According to him, KIB’s total assets as at December 2012 were KD1.24 billion compared to KD1.12 billion, thus registering an increase of 12 per cent. Al-Jarrah noted that growth in financing receivables of 13 per cent was matched with 13 per cent growth in depositor accounts.
"The capital adequacy ratio at December 2012 of 25.23 per cent comfortably exceeds the minimum regulatory requirements of 12 per cent," said Al-Jarrah.
He pointed out that during the year Al-Dawli was able to reduce non-performing financing receivables to 8.3 per cent of the portfolio down from 11.2 per cent through management’s continuous efforts to mitigate these risks.
According to him, 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, said the Kuwaiti bank in its statement.
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. Its network of ATM machines increased by 66 per cent during 2012 with more ATM machines installed in customer convenient locations.-TradeArabia News Service
More Finance & Capital Market Stories
- Islamic Development Bank triples capital
- Emirates NBD launches $1bn bond
- Kuwait budget surplus may hit $52 billion
- Peru road shows target Mideast markets
- EFG Hermes Q1 net profit up 27pc
- ADCB sells $300m of subordinated bonds
- Standard Chartered’s credit card wins award
- Emirates NBD seals Dubai tower deal
- Dar Al Arkan raises $450m from sukuk sale
- Barclays advises on equities over bonds