KIB achieves KD 13.5m net profit dur­ing Q316

Prof­its rise 15%; Bank’s to­tal as­sets grow 5% to KD 1.8bn

Kuwait Times - - BUSINESS -

Kuwait In­ter­na­tional Bank (KIB) has an­nounced that is has achieved a net profit of KD 13.5 mil­lion at the end of the third quar­ter of 2016, re­al­iz­ing a growth of 15 per­cent com­pared to the cor­re­spond­ing pe­riod of the pre­vi­ous year, where prof­its had reached KD 11.8 mil­lion.

In this con­text, Sheikh Mo­hammed Al-Jar­rah Al-Sabah Al-Jar­rah, Chair­man of KIB, said that Bank’s pos­i­tive per­for­mance up un­til the end of the third quar­ter of this year has re­flected pos­i­tively on a num­ber of key per­for­mance in­di­ca­tors, which has re­sulted in a sig­nif­i­cant growth in rev­enues. The Bank’s fi­nan­cial re­sults have re­vealed a growth in fi­nanc­ing rev­enues by 21 per­cent, an in­crease of KD 9 mil­lion to reach KD 52 mil­lion, com­pared to KD 43 mil­lion recorded at the end of the third quar­ter of 2015.

The re­sults have also shown growth in KIB’s to­tal as­sets by KD 94 mil­lion at a rate of 5 per­cent, to reach a to­tal of KD 1.83 bil­lion, com­pared to KD 1.74 bil­lion by end of the same pe­riod last year. This in­crease comes as a re­sult of a growth in the over­all fi­nanc­ing port­fo­lio by about KD 113 mil­lion, amount­ing to KD 1.25 bil­lion in to­tal and com­pa­ra­ble to KD 1.14 bil­lion at the end of third quar­ter in 2015, mark­ing 10 per­cent growth. In ad­di­tion, the in­crease in in­vest­ment se­cu­ri­ties port­fo­lio com­pared with the same pe­riod last year by KD 8 mil­lion at a rate of 12 per­cent amount­ing to KD 70 mil­lion in to­tal and com­pa­ra­ble to KD 62 mil­lion. Cus­tomer de­posits have also in­creased by 8 per­cent to reach a to­tal of about KD 1.12 bil­lion, com­pa­ra­ble to KD 1.03 bil­lion for the same pe­riod of 2015.

With re­gard to as­set qual­ity, KIB’s out­stand­ing per­for­mance dur­ing the third quar­ter of 2016 re­flected pos­i­tively on NPLs which re­mark­ably de­creased by 68 per­cent to reach 1.39 per­cent com­pared to 4.39 per­cent for the same pe­riod last year. On the other hand, the to­tal pro­vi­sion cov­er­age ra­tio has also in­creased to 237 per­cent com­pared to 75 per­cent for the same pe­riod last year. More­over, to­tal pro­vi­sions and col­lat­er­als cov­er­age ra­tio in­creased to 359 per­cent com­pared to 188 per­cent for the same pe­riod last year.

Ad­di­tion­ally, KIB recorded a strong per­for­mance in terms of main­tain­ing high lev­els of cap­i­tal ad­e­quacy ra­tio, in ac­cor­dance with the Cen­tral Bank of Kuwait’s reg­u­la­tions con­cern­ing Basel III, whereby cap­i­tal ad­e­quacy ra­tio reached 20.02 per­cent, while the fi­nan­cial lever­age ra­tio reached 10.25 per­cent.

The an­nu­al­ized profit rate of Arzaq KD de­posits reached 2.35 per­cent in the third quar­ter 2016.

Al-Jar­rah fur­ther added: “The strat­egy that KIB has put in place, and which was im­ple­mented to­wards the end of last year, aims to bring about a com­pre­hen­sive trans­for­ma­tion in terms of the Bank’s per­for­mance, prof­its, prod­ucts and ser­vices. The strat­egy adopts a fu­ture out­look which fo­cuses on pro­pel­ling the Bank for­ward to be­come the “Is­lamic Bank of Choice in Kuwait”. The im­pres­sive per­for­mance that we have seen in the first three quar­ters of 2016 is proof that KIB is suc­cess­fully achiev­ing the ob­jec­tives that had been out­lined for the sec­ond stage of its trans­for­ma­tion plan, which ex­tends through­out 2016 and fo­cuses on de­vel­op­ing and en­hanc­ing the prod­ucts and ser­vices of­fered to cus­tomers to best suit their needs and meet the de­mands of the mar­ket.

This comes in prepa­ra­tion for the launch of the third stage in our strate­gic plan dur­ing 2017, which fo­cuses on boost­ing KIB’s com­pet­i­tive edge within the banking sec­tor.”

Sheikh Mo­hammed Al-Jar­rah Al-Sabah Al-Jar­rah.

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