Warba Bank posts a net profit of KD 2.523 mil­lion in H1 2017

Net prof­its in­creased by 455%, rev­enues reached KD 26.311 mil­lion

Kuwait Times - - BUSINESS -

KUWAIT: By the grace of Al­lah, Warba Bank, Kuwait’s best in­vest­ment bank and cor­po­rate con­sul­tancy in­sti­tu­tion, has an­nounced that it has achieved re­mark­able fi­nan­cial re­sults for the first half of 2017, re­flected by its net prof­its which in­creased by 455 per­cent so as to reach KD 2.523 mil­lion com­pared to KD 0.455 mil­lion for the same pe­riod of the pre­vi­ous year. The in­crease in the bank’s to­tal rev­enues was driven by strong per­for­mance of all busi­ness units. Its over­all rev­enues reached KD 26.311 mil­lion with an in­crease of 57 per­cent com­pared to the first half of 2016. More­over, its op­er­at­ing rev­enues in­creased by 66 per­cent and amounted to KD 16.815 mil­lion at the end of the first half of 2017 com­pared to KD 10.109 mil­lion for the same pe­riod of 2016.

The to­tal as­sets of the Bank in­creased due to its strat­egy of ex­pan­sion in the lo­cal and re­gional mar­kets and in­vest­ments in high qual­ity and low-risk as­sets with a value of KD 1.498 bil­lion. Its fi­nanc­ing port­fo­lio wit­nessed a re­mark­able growth as it be­came KD 1.132 bil­lion with an in­crease of 68 per­cent over the first half of 2016. As a re­sult of the qual­ity of the fi­nanc­ing port­fo­lio, the Bank’s fal­ter­ing fund­ing Non-per­form­ing fa­cil­i­ties is 0.56 per­cent - a per­cent­age that is con­sid­ered to be one of the low­est ra­tios in the domestic bank­ing sec­tor. The Bank’s cov­er­age ra­tio of pro­vi­sions for fund­ing fal­ter­ing Non-per­form­ing fa­cil­i­ties was 288 per­cent at the end of the first half of the year. Com­ment­ing on the Bank’s re­sults for the first half of 2017, its Chair­man of the Board, Ab­dul­wa­hab Ab­dul­lah Al-Houti said, “Thanks to Al­lah’s Guid­ance, in the first half of 2017, Warba Bank achieved out­stand­ing re­sults and laid the foun­da­tion stone for the Bank’s drive to es­tab­lish it­self as a leader in Is­lamic cor­po­rate and in­vest­ment bank­ing ser­vices in Kuwait, as well as pro­vid­ing ad­vanced dig­i­tal ser­vices to in­di­vid­u­als.

Since the be­gin­ning of the year, the Bank has also ex­panded its in­vest­ment base in promis­ing emerg­ing re­gional and in­ter­na­tional mar­kets, en­hanc­ing its in­vest­ment port­fo­lio. That has pro­vided a ba­sis for in­vestors’ con­fi­dence in its per­for­mance.

Al-Houti af­firmed that Warba Bank con­tin­ues to in­no­vate ser­vices and prod­ucts that es­tab­lish a de­vel­oped era in the Is­lamic bank­ing sec­tor and also in­creases the spread of its branches in line with the am­bi­tion and re­quire­ments of its cus­tomers. He pointed out that the Warba Bank is ex­pand­ing its in­vest­ment plans in­ter­na­tion­ally, es­pe­cially fol­low­ing its achieve­ments in the first half in this re­spect. The Bank is cur­rently study­ing in­vest­ment op­por­tu­ni­ties in Kuwait and abroad which, Al-Houti as­sures, will en­hance the Bank’ in­vest­ment port­fo­lio and pro­vide prof­itable re­turns to in­vestors. Al-Houti also pointed out that all in­di­ca­tors prom­ise high-qual­ity per­for­mance of the Bank at all lev­els and de­part­ments.

Warba Bank’s CEO, Sha­heen Ha­mad Al-Ghanem, said that the Bank has made pi­o­neer­ing achieve­ments in the fi­nance and in­vest­ment sec­tor in the first half of 2017 in Kuwait and re­gional and in­ter­na­tional mar­kets, con­firm­ing its po­si­tion as an Is­lamic bank that of­fers reg­u­lar and re­ward­ing in­vest­ment op­por­tu­ni­ties for in­vestors. Al-Ghanem pointed out that this de­vel­op­ment fol­lows the terms of its strat­egy to cre­ate unique in­vest­ment op­por­tu­ni­ties for cus­tomers and to cre­ate ex­clu­sive fi­nanc­ing so­lu­tions. It also aims to sup­port the cor­po­rate and in­vest­ment sec­tor.

Steady growth

Al-Ghanem also said that the first half of 2017 wit­nessed the Bank’s achieve­ments in cre­at­ing in­vest­ment op­por­tu­ni­ties that pro­vide vi­able and reg­u­lar re­turns to in­vestors. The first achieve­ment was its peer­less suc­cess in mar­ket­ing its Sukuk is­sued at the be­gin­ning of the year with a value of $250 mil­lion, and could cover the sub­scrip­tion 5 times more than the is­sued Sukuk in the amount of $1.3 bil­lion. There­fore, its Sukuk were listed on both NAS­DAQ Dubai and the Ir­ish Stock Ex­change.

The Bank also had a suc­cess­ful par­tic­i­pa­tion in ar­rang­ing the is­suance of $400 mil­lion Sukuk by the Dubai-based, real es­tate de­vel­op­ment com­pany Mer­aas Hold­ing Com­pany. Warba Bank par­tic­i­pated in the deal with $50 mil­lion.

In the same con­text, the Bank par­tic­i­pated in a sharia-com­pli­ant, joint, multi-cur­rency, fi­nan­cial deal of $236 mil­lion for the Zi­raat Par­tic­i­pa­tion Bank of Turkey. In part­ner­ship with a range of other banks, Warba Bank acted as the Lead Ar­ranger and Sub­scrip­tion Man­ager of the deal.

In ad­di­tion, the bank has en­tered into a real es­tate in­vest­ment part­ner­ship with Ben­tall Kennedy com­pany of the USA, one of the world’s largest real es­tate con­sul­tancy firms, un­der which the lat­ter acts as a del­e­gated real es­tate ad­viser and a part­ner in­vestor in the bank’s com­mer­cial real es­tate prop­erty in­vest­ments in the United States. The most im­por­tant out­come of that new part­ner­ship is Warba bank’s ac­qui­si­tion of the head­quar­ters of Man­power Group, which is a 280,000-sqm of­fice build­ing in Mil­wau­kee city, State of Wis­con­sin.

In ad­di­tion, in the first half of 2017, Warba Bank ac­quired of a mod­ern ve­hi­cle im­port and ex­port es­tab­lish­ment in the UK for GBP 9 mil­lion. The said es­tab­lish­ment is rented by KIA Mo­tors un­der an ir­rev­o­ca­ble, longterm lease end­ing in 2037. More­over, Warba Bank has signed a re­new­able agree­ment with Al-Mulla In­ter­na­tional Fi­nance Com­pany (AMIFC) whereby the Bank will in­crease the amount of ac­quir­ing fi­nanc­ing port­fo­lios from AMIFC so as to reach KD 50 mil­lion.

A pi­o­neer­ing in­sti­tu­tion

As a re­sult of the rapid de­vel­op­ment wit­nessed by the dig­i­tal struc­ture of the Bank, it en­hanced its web­site www.War­baBank.com mak­ing it more in­ter­ac­tive, user-friendly. This makes the web­site the first des­ti­na­tion for cus­tomers and helps them to com­plete their trans­ac­tions on­line ex­tremely eas­ily.

Al-Ghanem also pointed out that the ser­vices avail­able on the web­site fall un­der the name of ‘Ex­press’, in­clud­ing:

‘Fa­toura Ex­press’, which al­lows the cus­tomer to pay their mo­bile phone bills on a cer­tain date and in a cer­tain amount they set in ad­vance.

Cus­tomers can open an Ex­press Ac­count in five min­utes only.

More­over, the Bank pro­vides an Ex­press ser­vice for mak­ing quick pay­ments.

The Bank also pro­vides ‘Al-Mustafeed Ex­press’ ser­vice, which al­lows the cus­tomer to add a Warba Bank ben­e­fi­ciary by entering their mo­bile num­ber through Warba On­line or by us­ing Warba App for smart­phones.

Cus­tomers can also open on­line ac­counts such as Al-Sun­bu­lah Ac­count and de­posits.

Among the Bank’s on­line ser­vices are Ex­press Up­date and Ex­press Chat.

More­over, ‘Cheques Ex­press’ ser­vice en­ables the cus­tomer to re­quest a cheque book and choose the branch that they want to get it from.

‘Ex­press Share’ ser­vice al­lows cus­tomers to send a trans­fer re­quest to any­one to en­able them to send a trans­fer re­quest to any­one to en­able them to pay us­ing a link sent to their cell phone through an SMS.

‘Eidiyah Ex­press’ ser­vice al­lows cus­tomers to re­quest and re­ceive their Eidiyah [Money Treat in Feasts] from any branch of their choice.

To achieve more dig­i­tal ad­vances, the Bank has re­cently launched a What­sApp mo­bile ser­vice to en­able cus­tomers to com­mu­ni­cate di­rectly with the Bank em­ploy­ees, as well as Ap­ple Watch ser­vice which en­ables cus­tomers to follow up dig­i­tal bank­ing through dig­i­tal watches.

Mar­ket­ing Cam­paigns

Al-Ghanem added that the Bank has re­cently launched the Visa Sig­na­ture Credit Card within the Bank’s strat­egy to pro­vide cus­tom­ized bank­ing so­lu­tions that of­fer ex­cep­tional, and ex­clu­sive ben­e­fits and re­wards. In ad­di­tion, the Bank launched a mar­ket­ing cam­paign for its Al-Safwa Cus­tomers hold­ing its Credit Card un­der the ti­tle: Jeep Cheap! The cam­paign of­fers Al-Safwa cus­tomers a pack­age of fea­tures that cul­mi­nates in entering a draw where they can win a Toy­ota Land Cruiser. The Bank also con­tin­ues its salary trans­fer cam­paign launched ear­lier this year, which is in line with its strat­egy to pro­vide an in­te­grated sys­tem of Is­lamic prod­ucts that meet its cus­tomers’ ex­pec­ta­tions. It has also en­hanced Al-Sun­bu­lah Ac­count by in­creas­ing the num­ber of monthly win­ners to 13 of­fer­ing prizes up to KD 30,000.

Ra­madan cam­paign in­spires so­ci­ety

As part of the Warba Bank’s so­cial ac­tiv­ity dur­ing the first half of this year, AlGhanem stressed that the Bank’s so­cial re­spon­si­bil­ity cam­paign dur­ing the holy month of Ra­madan has gen­er­ated pos­i­tive re­ac­tions among the Kuwaiti so­ci­ety com­mu­nity and a great deal of in­ter­ac­tion from the en­tire com­mu­nity. Based on the slo­gan “How won­der­ful man is!”, the cam­paign in­cluded many di­rect events in the Bank’s booth at the 360 Mall. It fea­tured in­flu­en­tial fig­ures who have over­come hard­ships to make achieve­ments and suc­ceeded in spread­ing in­spi­ra­tion among the young peo­ple in Kuwait. The cam­paign also in­cluded a TV ad of the Bank based on the same prin­ci­ple. The ad was a hit on web­sites. Fur­ther­more, the Bank has ex­erted ef­forts to spread in­spi­ra­tion and to sup­port young peo­ple through so­cial me­dia chan­nels through video record­ings of Kuwaiti in­no­va­tors and cre­ative minds who strug­gled to reach their goals.

Qual­ity awards

Warba Bank’s ef­forts in cor­po­rate and in­vest­ment sec­tor em­bod­ied by in­tro­duc­ing in­no­va­tive Is­lamic bank­ing so­lu­tions were re­warded by win­ning two pres­ti­gious awards from Banker Mid­dle East mag­a­zine: “Best Cor­po­rate Bank in Kuwait” and “Best In­vest­ment Bank in Kuwait” for 2017.

These awards are the re­sult of the Bank’s pur­suit of a de­vel­op­ment strat­egy in the cor­po­rate and in­vest­ment sec­tors and a re­sult of its re­cent achieve­ments in this re­gard.

Al-Ghanem con­cluded: “The first half of this year wit­nessed a grow­ing de­vel­op­ment in Warba Bank’s per­for­mance at var­i­ous lev­els, es­pe­cially in the in­vest­ment and bank­ing so­lu­tions sec­tor. We prom­ise that this achieve­ment will have been dou­bled by the end of the year thanks to the con­fi­dence our in­vestors put in us and our team’s rest­less ef­forts to do their best to bring the Bank to the fore­front. “

Ab­dul­wa­hab Ab­dul­lah Al-Houti

Sha­heen Al-Ghanem

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