ABK Group ends Q3 with 23% net profit growth
KUWAIT CITY, Oct 20: Al Ahli Bank of Kuwait (ABK) Group, one of the leading regional banks in Kuwait, continued its strong financial performance with a 23% growth in net profit for the first nine months of 2018 reaching KD 27.1 million. Operating income for the period was KD 126.8 million, an increase of 11% over the same period last year. Total assets reached KD 4.6 billion, up 6 per cent from 2017. Common Shareholders’ Equity increased by KD 13.6 million to reach KD 576 million, a growth of 2.5 per cent year-on-year.
ABK’s customer deposits reached KD 3.14 billion, up 7 per cent from 2017. Asset quality remained strong with the non-performing loan (NPL) ratio at 1.98 percent and NPL coverage of 349 per cent. The bank’s capital adequacy ratio and Tier 1 capital ratio were 18.86 per cent and 17.7per cent, respectively.
Commenting on the results, Talal Mohammed Reza Behbehani, Chairman of ABK said: “This quarter witnessed a period of continued strong performance and steady growth across the countries we operate in. The financial results validate the successful execution of our strategy, and we are in an advantageous position with high asset quality and stable income, which will help deliver sustainable long-term shareholder value. We are particularly proud to be listed as one of the Top Ten Safest Banks in the region by Global Finance for the second consecutive year, and we will remain focused on delivering positive results, and achieving the Group’s full potential.”
Michel Accad, Group CEO of ABK said: “We are pleased with our first nine months performance as our geographical mix, technology enhancements, and Simpler Banking strategy continue to add to our strategic advantage. Our plan for the last quarter of this year and going forward will be to remain focused on the implementation of our strategic initiatives, enhancing our customer’s experience and attracting the best talent while also developing our staff internally. The Group is moving toward implementation of the 2020 “Simplify & Transform” plan, an ambitious programme of new customer experiences, digital transformation and operational efficiency.”
In September the bank issued a $ 300 million Tier 1 perpetual bond on the International Capital Markets, which was oversubscribed with very strong interest from investors outside the MENA region. This bond was also the first international capital issuance out of Kuwait in 2018. Furthermore, ABK’s landmark $800 million agreement with Dubai Aerospace Enterprise for syndicate funding was highly successful and achieved substantial oversubscription.
The bank continued to maintain strong credit ratings of “A2” for senior unsecured debt by Moody’s and “A+” for long-term issuer default by Fitch.
Additionally, ABK won numerous awards during the year including : ‘Best Digital Transformation’ by Asian Banker, ‘Best Retail Bank’ in Kuwait by four different international magazines Banker ME, Asian Banker, International Finance Magazine and The European. The bank was also named Bank of the Year by Arabian Business Magazine for the third consecutive year.
For more information about ABK please visit eahli.com or contact an ABK customer service agent via ‘Ahlan Ahli’ at 1899899.