ABK re­ports op­er­at­ing profit of KD 65.6 mil­lion

Op­er­at­ing in­come in­creases to KD 110 mil­lion in Q3 2016

Kuwait Times - - BUSINESS -

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.

Talal Mo­hammed Reza Be­hbe­hani

Michel Ac­cad

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