KIB achieves KD 13.5m net profit during Q316
Profits rise 15%; Bank’s total assets grow 5% to KD 1.8bn
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.