ABK reports operating profit of KD 65.6 million
Operating income increases to KD 110 million in Q3 2016
Al-Ahli Bank of Kuwait (ABK) yesterday announced an operating profit of KD 65.6 million for the third quarter of 2016, in line with last year’s number of KD 65.4 million. Operating Income increased to KD 110 million, from KD 95.2 million in 2015, mostly as a result of the Piraeus Bank Egypt acquisition, but this was offset by higher Operating Expenses, as ABK continues to invest in its people and upgrades and consolidates its systems and platforms.
Net profit reduced to KD 19.8 million against KD 29.2 million in 2015, as the Bank aggressively augments its precautionary provisions given the uncertain environment. Total assets reached KD 4.4 billion, up 15.8 percent compared to September 2015, and total shareholder equity remains flat at KD 556 million. Earnings per Share (EPS) at 12 fils for the third quarter 2016, compares to 18 fils for the same period last year.
Talal Mohammed Reza Behbehani, Chairman of Al-Ahli Bank of Kuwait said: “Our performance over the third quarter underlines our long-term strategy of fiscal prudence. ABK continues to perform positively, maintaining its operating profit year-on-year while investing in its future. The reduction in net profit is due to our aggressive provisioning and disciplined financial approach. This pragmatic approach has served the Bank well and, in our view, is sensible in light of the current unpredictable economic climate.
Investment in technology
“Meanwhile, we have maintained our investment in service and skills within the Bank, upgrading where we need to, and ensuring that we continue the forward momentum in our services and product quality. The progress we have made is down to the hard work, skills and dedication of our people and we expect the current trend to continue over the remainder of this year.”
Michel Accad, Chief Executive Officer, said: “Our investment in technology and customer service continues, reinforcing our commitment to offer ‘Simpler Banking’ for our customers. In July we were pleased to announce further enhancements to our online bill payment service, as well as continuing the development of our ‘One Tap Touch’ ID technology and provision of new services at several of our branches for customers with special needs, such as adapted ATMs, sign language services and website audio translation.
“Our program for rebranding our acquisition in Egypt to ABK Egypt is on track and we recently announced the successful completion of this work at our regional headquarters in Smart Village, Cairo, and at our flagship branch at Zamalek. The remaining branches in Egypt are currently in the process of being upgraded and rebranded and this I expect to be completed within the next 6 weeks.
“These enhancements all contribute to reinforcing ABK’s emergence as one of the region’s leading retail and commercial banks, providing the highest quality, accessible and consistent customer service and products across our network.”
ABK’s performance has continued to be recognized by industry commentators and peers over the year. Most recently, the Bank was presented with the LPI certification; the only financial institution in the Middle East to be accredited and ABK was listed among the 50 safest Banks in the world by Global Finance. In addition, Michel Accad was named ‘Bank CEO of the Year’ by CEO Magazine, an ITP affiliate; further testament to the Bank’s outstanding leadership and approach.
Earlier in the year, the Bank also received the ‘Best Bank Transformation in the Middle East’ award at the Euromoney Award for Excellence 2016, and was commended for its strategic acquisition of Piraeus Bank Egypt, where it received the prestigious regional ‘Deal of the Year’ by The Banker, an FT affiliate, and Best Retail Bank by Asian Banker. Other awards received by the Bank this year have included the ‘Retail Bank of the Year’ by the European, ‘ Best Commercial Bank’ by Banker ME, ‘Best Small Call Center’ and ‘Best Escalation Management’ Awards from the Insight Awards 2016, and ‘Employer of the Year’ award from NASEBA.