Al Dawli records 15% growth in profits for first quarter
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KUWAIT CITY, May 2: Sheikh Mohammad Al Jarrah Al Sabah, Chairman of Kuwait International Bank, declared that the bank realized 15% growth in profits for the first quarter of 2015, amounting to KD5.8 million compared to KD 5 million in the corresponding quarter of last year (2014). This growth has come as a result of increase in revenues and an improvement in the controlling of expenditures.
The financing revenues rose by 14% i.e. KD1.7 million totaling KD 14.3 million compared to KD12.6 million for the corresponding period last year. Revenues from fees and commissions realized a growth of 15% i.e. KD 400 thousand, amounting to approx. KD2.67 million compared to KD 2.31 million for the same period last year. The revenues from investment increased also by KD400 thousand, amounting to KD1.63 million compared to KD1.27 million for the corresponding period of 2014, thus realizing a growth of 28%.
The total expenditures reached KD5.4 million compared to KD5.1 million, i.e. an increase by KD300 thousand only with a percentage of 6% compared to the corresponding period last year. The earnings per share (EPS) increased in the first quarter of 2015 by 15% i.e. 6.2fils compared to 5.4 fils for the corresponding period last year.
Sheikh Mohammad Al Jarrah also indicated that Al Dawli’s assets increased by KD160 million, i.e. by 11% reaching KD1.66 billion compared to KD1.50 billion for the same period last year. This increase came as a result of a growth in the financing portfolio by KD122 million realizing KD1.088 billion, compared to KD966 million, that is 13 % higher than the corresponding period last year. Depositors’ accounts rose to approximately KD980 million in comparison with KD 916 million for the same period last year, i.e with an increase of KD 64 million at” 7%”.
Kuwait International Bank’s positive performance during the first quarter of 2015 reflected on NPL which decreased by “45% “to reach “3.7%” in comparison with “6.7%” for the same period last year. Accordingly, total NPL provisions percentage which was “88%” increased to “92%” in comparison with “49%” for the same period last year.
Moreover, provisions and collaterals coverage percentage increased from “192%” of last year to become “205%” in Q1 of this year. Kuwait International bank continued to maintain excellent rates of the capital adequacy ratios in accordance with the CBK instructions regarding Basel III, where the ratio exceeded “25%” while financial leverage ratio surpassed “11%”. Indeed, the aforementioned positive results fostered rise of return on assets to reach “1.4%” in comparison with “1.3%” of the same period last year. In addition, return on equity jumped to “9.7%” in comparison with “8.9%” of the same period last year. Moreover, distributions on depositors accounts leaped up to “1.2%.”
Finally, Al-Jarrah mentioned, “AlDawli is extremely committed to its strategy aiming at responding to shareholders and customers aspirations and to continue to provide eminent Shariah-compliant services and products. Al-Dawli recently adopted vision and strategy that safeguard continuity, update and progress of such services and products together with ensuring itsexpansion all over Kuwait. This willbe done through diverse banking business channels with a view to enhance shareholders rights and AlDawli’s image as pioneer Islamic banking institution operating in the State of Kuwait.”