ABK records solid H1 net profit of KD 16.2 mil­lion

Bank posts 7.7% profit growth over 2016

Kuwait Times - - BUSINESS -

Build­ing on its pos­i­tive re­sults for the first quar­ter of 2017, Al-Ahli Bank of Kuwait yes­ter­day an­nounced a net profit of KD 16.2 mil­lion for the first half of 2017, mark­ing a 7.7 per­cent growth. Op­er­at­ing profit reached KD 46.8 mil­lion com­pared to KD 44.2 mil­lion in the first half of 2016, record­ing a 6 per­cent growth. Earn­ings per Share (EPS) is 10 fils, com­pared to 9 fils in first half of 2016. To­tal as­sets as at end of June 2017 reached

KD 4.33 bil­lion up 1 per­cent com­pared to end of De­cem­ber 2016. As­set qual­ity re­mained strong with NPL ra­tio at 2.52 per­cent and NPL cov­er­age in­creas­ing to 293 per­cent from 281 per­cent in De­cem­ber 2016. Cap­i­tal ad­e­quacy ra­tio was ro­bust at 16.41 per­cent.

Com­ment­ing on the Bank’s re­sults, Chair­man of Al-Ahli Bank of Kuwait, Talal Be­hbe­hani said: “Our pos­i­tive per­for­mance con­tin­ues to pave the way for fur­ther de­vel­op­ments within the ABK group. We are proud to have cel­e­brated our 50th an­niver­sary in May, and we look for­ward to fur­ther build­ing on the great his­tory of this Bank. We are keen to main­tain our man­age­ment ap­proach, which has proven suc­cess­ful es­pe­cially in the midst of the mar­ket chal­lenges and strong com­pe­ti­tion in the Kuwait mar­ket. I am con­fi­dent mov­ing for­ward and we look for­ward to a good year.”

Michel Ac­cad, Chief Ex­ec­u­tive Of­fi­cer, said: “This year has started on a pos­i­tive note, and we have con­tin­ued to per­form and de­liver at the ex­pected lev­els. Our bench­mark de­but is­sue from our re­cently es­tab­lished $1.5 bil­lion Euro Medium-Term Note (EMTN) pro­gram was very well re­ceived from the global mar­kets. We are im­ple­ment­ing our Sim­pler Bank­ing strat­egy that is the driv­ing force for the Bank, and last but not least defin­ing strate­gic op­por­tu­ni­ties that will work in fa­vor of our ex­pan­sion plans, and fur­ther so­lid­ify our pres­ence in the Kuwait mar­ket and the re­gion as a whole.

ABK-Egypt has de­liv­ered very strong profit and growth and con­tin­ues to op­er­ate at a healthy pace. All 39 branches have now been re­branded and we are cur­rently en­hanc­ing the cus­tomer ex­pe­ri­ence and re­vamp­ing the in­side of the branches.” ABK was re­cently awarded the ‘Best Re­tail Bank in Kuwait’ for 2017 by the Asian Banker, for the sec­ond con­sec­u­tive year , Best Re­tail Bank’ from The Euro­pean, ‘a Thom­son Reuters af­fil­i­ate’, ‘Best Com­mer­cial Bank in Kuwait’ for the sec­ond con­sec­u­tive year, ‘Best New Brand in Egypt’ by Banker Mid­dle East, ‘Bank of the Year’ by Ara­bian Busi­ness Mag­a­zine -high­light­ing the Bank’s se­ries of mile­stones and achieve­ments that have been recorded through­out the past year and ‘Em­ployer of the Year’ by Naseba for the sec­ond con­sec­u­tive year in recog­ni­tion of its sub­stan­tial ‘Work­ing Cul­ture and achieve­ments all round’.

Fi­nan­cial per­for­mance sum­mary

• Un­der­ly­ing op­er­at­ing profit of KD 46.8 mil­lion, up 6 per­cent.

• Un­der­ly­ing net profit of KD 16.2 mil­lion, up 7.7 per­cent re­flect­ing strate­gic man­age­ment ac­tions un­der chal­leng­ing mar­ket con­di­tions.

• Un­der­ly­ing to­tal share­hold­ers’ eq­uity of KD 555 mil­lion.

• Un­der­ly­ing Earn­ings per Share (EPS) at 10 fils in H1 2017, up 11 per cent com­pared same pe­riod last year.

Talal Be­hbe­hani

Michel Ac­cad

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