Kuwait-based Warba Bank reported a net profit growth of 633 per cent to reach KD315,000 ($1.03 million) for the first half of 2015 compared to KD43,000 for the first six months of 2014.

Total income grew by 37 per cent to reach KD11.17 million. The strong operating performance was supported by all business units within the bank.  
 
The bank’s balance sheet was further strengthened by strong operating revenue which has increased by 23 per cent to KD7.582 million at the end of the first half of 2015 compared to KD 6.145 million during the same period in 2014.

As at June 30, Warba Bank’s total assets increased 30 per cent to reach KD 645 million as a result of the bank’s aggressive geographical expansion strategy in local and regional markets, combined with investments in low-risk and high quality assets.   

The bank’s financing portfolio has also showed an impressive growth of 50 per cent to reach KD457 million compared to the first half of 2014. This enabled the bank’s default finances ratio to reach 0.24 per cent, which is considered among the lowest in the local banking sector. The bank’s coverage ratio reached 564 per cent at the end of the first half of 2015.

Emad A Al Thaqeb, chairman, Warba Bank said: “We are pleased to deliver another set of strong financial results. The impressive growth in profits and operational revenues despite a tough competitive environment further validate Warba Bank’s strong balance sheet supported by asset quality, capital and liquidity.”

“The bank’s expansion plans combined with introduction of innovative banking propositions provided strong foundation for the record financial performance for the first half of the year,” he added.

Customer deposits have increased 36 per cent reaching KD547 million in the first half compares to the same period in 2014 with KD402 million.

Warba Bank has been committed to the requirements of maintaining good safe investments and credit portfolios and the net financing revenue has increased to KD 5.5 million compared to KD 4 million for the same period in 2014, representing a growth of 38 per cent.

Al Thaqeb added: “Warba bank is very keen on its solid financial platform and the quality of its assets and it works to seizing investment opportunities that are suitable with low investment risks and can achieve strong returns which will support the future growth of the bank whilst enhancing its competitive ability and increase its share in the Islamic banking market which is witnessing a rapid popularity and strong competition locally and regionally.”

Jassar Al Jassar, vice chairman & chief executive officer, Warba Bank said: “We will continue to grow through our investments and successful banking policy which projects positively on performance indicators among the outstanding 50 per cent increase in its financing portfolio reaching KD457 million compared to KD304 million for the same period in 2014 with a decrease in the default finances which has reached 0.24 per cent.”

“Warba Bank aims at increasing its financing portfolio market share through working continuously towards developing and innovating financing products that are Shariah complaint and fulfil the requirement of customers while easing their financial burdens. In addition to the bank making customers feel special with the high privileges credit cards which provide customer a lot of benefits and advanced services,” he added. – TradeArabia News Service