Warba’s precision strategy yields successful implementation
KUWAIT CITY, April 16: The Chairman of Warba Bank, Hamad Musaed Al-Sayer, said that the Bank was able to implement a solid strategic vision that began years ago and completed it with remarkable success through management that was supervised and implemented with sincerity and mastery, and its goal was not only achievement; Rather, praised achievement by everyone.
Al-Sayer added in his speech during the General Assembly, which was held yesterday, with an attendance rate of 54.874%, that the combined integrated efforts were behind the achievements of Warba Bank during the year 2023. Warba succeeded in translating its vision and mission into reality and reaping the fruits of implementing a long-term strategy adopted by the Board of Directors, to diversify sources of profits, avoid risks, rationalize spending, increase operating revenues from major banking activities, and achieve harmony in performance, to ensure sustainability in growth and profitability.This was confirmed by the positive indicators, the strength and efficiency of the financial position, and the sustainable, balanced growth over the past years, which was characterized by increasing positive performance in financial indicators and market shares, which reflects the strength of the financial position and the sustainability of profits.
Growth of all financial indicators
Al-Sayer continued, saying: “We conclude the year 2023 with remarkable distinction for Warba Bank, which was built on solid steps and a deep foundation, continuing the progress you have witnessed, with growth in earnings per share to achieve an increase at the end of 2023 of 12.4% as a result of a vision that was carefully formulated, studied and implemented. He added that the Bank’s net profits amounted to KD 19.7 million, compared to net profits in 2022, which amounted to KD 19.3 million, and an earnings per share of 8.05 Fils in 2023 compared to 7.16 Fils in 2022.”
Al-Sayer explained that these results achieved by Warba Bank, despite the intense competition in the banking sector, are dueto the trust placed in Warba Bank by the distinguished shareholders and esteemed customers, and the subsequent diligence and sincerity provided by all employees of the Bank, with diligent care to provide the highest and most distinguished levels of service to clients, with exceptional creativity and remarkable innovation, which the Bank has been keen to implement, motivate and develop since the launch of its five-year strategy in 2022.
Rationalizing expenses and maximizing profitability
He stated that the integrated efforts provided by the Bank resulted in achieving tangible growth in most of its basic financial indicators, while maintaining the distinguished rate of return on assets and return on shareholders’ equity, rationalizing expenses, and maximizing profitability. Through our preventive plans, we will be able to improve asset quality indicators and bad debt coverage rates from provisions.
He stressed that, as a result, total assets increased to KD 4.8 billion, a growth rate of 15%. We also witnessed an increase in total operating revenues, reaching KD 245 million, a growth rate of 53%. Customer deposits increased during the year 2023 to KD 2.9 billion, an increase of KD 233 million or 9% over the year 2022
Al-Sayer noted that financial indicators are continuing to record improved figures, as the value of the Bank’s equity has increased, reaching KD 391 million, compared to the year 2022, which recorded an increase then of KD 17 million.He pointed out that the efforts did not stop there, but rather the Bank continued to work to support ambitious projects that achieve customers’ visions, which directly contributed to increasing the value of the financing portfolio to KD 3.5 billion, with a growth rate of 10% in line with thecontinuous increase in the Bank’s client base.
Al-Sayer further said that the market share of local financing in general has witnessed an increase of 0.7% currently, resulting from an increase in Warba Bank’s share of corporate financing by 1.02%.
Warba Bank’s achievements did not stop there. Rather, it also succeeded in maintainingthe capital base above the minimum requirements as per Central Bank of Kuwait, with the capital adequacy ratio increasing from 16.94% at the end of 2022, to 16.98% at the end of 2023.
Our human wealth
Al-Sayer praised the Bank’s employees, saying: “They are not just employees; they are real wealth, raising Warba Bank on solid foundations of knowledge, experience, and competence. They keep pace with every cognitive and creative development, confident that Warba Bank has given them the highest attention, as their development
means its development, and their excellence means its excellence. Explaining that this vision requires leadership that combines the courage of ambitious youth with experience that keeps the balance, without being an obstacle to progress. Rather, to be open to everything new, and keeps pace with every progress.Therefore, Warba Bank gave the youth a leadership role, with full confidence, due to the potential of its employees that qualify them for this leadership, with endless support from practical and academic training, so that the Bank would be an attractive environment for every young person with thought and creativity. Opening its doors to Kuwaiti youth who aspire to creativity more broadly than their peers.”
Al-Sayer noted that Warba Bank has endeavored to implement the Kuwaitization plan set by the Board of Directors within its strategic plan, with a balanced rate between employment and development of national talents, reaching more than 83.5%, so that we can take our role and duty in truly effective contribution to the national economy.
Al-Sayer stated that Warba Bank is still one of the institutions that most often opens its career doors to Kuwaiti citizens, and attracts and develops national talents, as the rate of attracting Kuwaitis ranged from new appointments in recent years, which reached 83.5%, most of whom were recent graduates.
At Warba, we did not neglect implementing the succession plan, pushing for Kuwaitis to receive middle management and executive management positions, thus supporting the achievement of the nationalization goals for workers in the Bank. Highlighting that this contributed to making “Warba” the most attractive environment for young people eagerly searching for a competitive place to work in the private sector in general, and the banking sector in particular, providing a wide and fertile space for creativity and innovation.
Strategic partnerships
On the other hand, Al-Sayer said that Warba Bank is keen, as usual, to pay attention to sports and youth activities and develop them for school and university students, as the Bank signed a strategic partnership with the Kuwait School Sports Federation and Higher Education, to sponsor the school league for the year 2023/2024, to encourage the practice of sports as a healthy lifestyle, Instilling the value of noble competition, and nurturing the sporting talent that is formed in this age group rich in talent. This partnership aims to promote school sports and higher education and build a strong and capable sports generation that can proudly represent our country at the local, regional, Arab and international levels. This is part of our efforts to contribute to building a sustainable future for the youth of Kuwait.
Technology investment
Al-Sayer stressed that “Warba” has been keen since its inception in technological and digital investment due to its firm conviction that it is the future of business in general, so Warba Bank launched an event on the world of augmented reality “Warba World” as part of its bold plan towards digital transformation and innovation.Warba Bank was the first to launch this unique initiative in marketing activation, to be the first of its kind in Kuwait, presented with a local touch, to educate the community financially, for the Bank’s clients and others, in the form of educational materials and a review of general facts in the form of simple questions and answers, believing in society’s right over us, offering it everything we can in recognition of our social responsibility.
Distinctive retail services
Warba Bank is unique in providing many banking services and products, which form part of its identity that it has built among its clients and investors, proving year after year that it is one of the most distinguished Kuwaiti banking institutions in customer service.It does not stop at any limit; Rather, it always seeks to provide innovative services and unique products in the banking market, after studying new segments of clients and dividing them into categories that share common interests and hobbies.Warba Bank launched the first prepaid card for e-sports in Kuwait, which was designed for a new segment of clients, united by one hobby and a special interest,emphasizing that the rapid progress and development that our current era is witnessing requires us to always be progressive, unique pioneers, and put our own identity and mark in everything we offer.
Quality initiatives
Warba is a life partner for its clients, and a community partner for the entire community. Its responsibility is not limited to its clients; Rather, it goes beyond that to include all members of society, so it always adopts qualitative community initiatives, those that make society better and facilitate people’s lives.
Among the qualitative initiatives adopted by Warba Bank, through strategic partnerships:
• “Sad” application for e-learning, where Warba Bank worked in cooperation with the “Sad” application to launch the first electronic competition of its kind in Kuwait for the Holy Qur’an; “Warba Readers”, through which the specialized Warba Bank team sought to develop the latest methods and technologies inthe field of e-learning, to present a Ramadan Qur’anic competition, which provided a high-tech competitive environment, with a modern touch, and under the supervision of an elite group of certified memorizers and specialized educational supervisors.
• An initiative at Gulf University for Science and Technology to collect plastic bottle caps, to raise community awareness about sustainability and the cumulative danger of these materials to the environment and the importance of recycling. Warba Bank sponsored this initiative, which was carried out by the public relations club for university students, collecting more than 90,000 plastic caps. They created the name “Kuwait” to enter the Guinness World Records.
• The “Let’s Be Aware” campaign, in which Warba Bank participates in cooperation with the Central Bank of Kuwait and the Kuwait Banking Association, with monthly activities, to increase the level of awareness in society about electronic fraud methods, and to educate and protect everyone and alert them about the latest developments in electronic fraud, to protect them and preserve their money.
The General Assembly approved all items on the agenda, including the Board of Directors’ recommendation to distribute bonus shares at the rate of 6% of the nominal value of the share, i.e. (6 shares for every 100 shares) to shareholders for the fiscal year ending on December 31, 2023.