Boubyan Bank posts KD 47.6 mn net profit for 2017
Lender recommends distribution of 7% of shares in cash and 5% as bonus shares: Al-Fulaij
KUWAIT CITY, Jan 22: Boubyan Bank continued its journey of success started 7 years ago, by recording KD 47.6 million in net profits for the year 2017, with a growth rate of 16%, compared with the past year, while the earnings per share amount to 18.71 fils, compared with 16.94 fils for the year 2016. The bank recommended the distribution of 7% of shares in cash and 5% as bonus shares.
Mahmoud Al-Fulaij, Boubyan Bank’s Chairman, commented on these positive results by stating: “By the Grace of Allah, the Almighty, then the efforts of our human resources, the trust of our shareholders and customers, we managed to continue our journey towards recording good growth rates which highlight the success of both our strategy and our expansion plans in the domestic market.”
“Despite the economic and geopolitical circumstances in the region, the bank managed to overcome such obstacles and to maintain the same profitability growth rate achieved over the past years”, he added.
Al-Fulaij stressed that the Bank would follow the same strategy in 2018 and continue its expansion plans in the Kuwaiti market in order to increase its market share through the innovative banking products and services presented to its customers.
Growth of All Main Indicators
Adel Abdul Wahab Al-Majed, the Bank’s Vice-Chairman and CEO, stated that all of the Bank’s main indicators witnessed a remarkable growth until the end of the past year where the total assets increased to KD 4 billion at a growth rate of 14% while the operational revenues increased to hit KD 126 million at a growth rate of 22% in addition to the increase in customers’ deposits by 15%, amounting to KD 3.4 billion.
He further added that the total equity of the bank increased to KD 375 million compared with KD 345 million last year and that there was a notable increase in the financing portfolio up to KD 2.9 billion at a growth rate of 14% in addition to the continuous growth of the bank’s customer base.
Al-Majed stated as well that the market share, in financing, increased generally to approximately 8% in the meantime, while the share of the retail finance increased specifically to approximately 11%. Besides, the bank recorded outstanding growth rates in the corporate credit portfolio which stood at 15%. This was achieved by attracting a number of operational companies known for their financial and economic creditworthiness while continuing to maintain the highest standards of credit quality, studying and diversifying risks.
Expansion of Branches & Technology Services
Furthermore, Al-Majed stressed the continuity of the Bank’s plans to expand in the local market by opening new branches which have now reached 40 branches with a plan to open more branches during the current year.
He went on to add: “In line with our domestic geographical expansion to be closer to our clients, we are continuing our investment in services and ebanking products which placed us ahead of other local banks. We are doing that in order to cater for the needs of our clients.”
“Customer service has always been our recipe for success, as we have always taken into account that all our customers are special and that they deserve the best because meeting their aspirations and ambitions should be up to the level of their expectations when they chose us. In other words, by choosing us, customers should be rewarded with special care and attention.”, AlMajed emphasized.
Outstanding Ratings Dwelling on ratings, Al-Majed stated that upgrading the various ratings and evaluations of the bank by specialized global institutions highlighted the success of the domestic expansion of the bank which positively affected the bank’s operational revenues and profitability.
Al-Majed referred to the most recent Fitch report which upgraded the bank’s Viability Rating “VR” from BB+ to BBB-, while affirming deposits’ rating at A+. Accordingly, Boubyan Bank’s Viability Rating from Fitch is considered the second highest rating among all Kuwaiti Banks.
The report stated that the VR upgrade reflects Boubyan Bank’s improving franchise, effective strategy implementation and higher-than-peers earnings and profitability.
Fitch’s report further referred to the domestic leadership of the bank’s business model in the local market, which is supported by the provision of innovative Fintech services to retail clients, adding that the bank has a competent management team that is highly experienced in local banking.
Fitch has also pointed out that Boubyan Bank’s strategic objectives were proven to be consistent, sustainable, articulated around domestic- and organic-led growth, and that the management demonstrated an effective strategy implementation record.
The report also referred to the quality of the bank’s finance portfolio which is ranked among the portfolios with the least nonperforming loans in the banking industry with a high coverage ratio.
A Remarkable Award-Winning Year
Al-Majed noted that 2017 was the most remarkable year in terms of the awards won by the bank due to the bank’s successful journey over the past years, that was closely monitored by international institutions which based their assessments on results, thus, awarding the bank a number of local, regional and international awards.
The Bank received the Best Digital Islamic Bank Award Worldwide from Global Finance for the third year in a row in addition to being named the Best Performing Islamic Bank Globally from the World Islamic Banking Conference (WIBC) held annually in the Kingdom of Bahrain.
The bank was also named the Best Islamic Bank in Kuwait by Global Finance due to its achievements whether in terms of high profitability rates or the increase of its market shares. Additionally, the bank received the first place award, for the seventh year in a row atop all Islamic Banks in customer service from Service Hero, the international consumer-driven customer satisfaction index, in addition to being named the Best Private Sector Institution in Customer Service in Kuwait for the 2nd time.
The bank was equally excelling in terms of nationalization of manpower which was evidenced by winning the Best Private Sector Institution Award, for the fourth year in a row, in the field of manpower nationalization by the GCC.
Al-Majed further stated: “This kind of awards once more reiterates our bank’s superb competitive abilities, and its ability to provide its customers with the highest levels of services and the best products customers may seek, whether they are existing customers or potential customers targeted in the Kuwaiti market.”