Warba Bank operating revenues rise at 79% to reach KD 18.53m Financing portfolio grows at 78% reaching KD 388.16m
KUWAIT: Warba Bank has announced its annual financial results for 2014 demonstrating remarkable growth across all indicators of the Bank supported by significant increases in the operating revenues and the Bank’s financing portfolio.
For the year ending 31 December 2014, Warba Bank has reported operating revenue of KD 18.53 million at 79 percent increase compared to KD 10.32 million for the year ended 31 December 2013. The financial statements demonstrated that the Bank generated a net profit of KD 115,000 for the 12 months ending 31 December 2014 at an increase of 103 percent compared to a loss of KD 3,709 Thousand for 2013.
The Bank’s total assets grew reaching KD 594.8 million as in December 2014 compared to KD 405.51 million by the end of 2013, while maintaining high asset quality. Realized profits before provisions increased at 302 percent reaching KD 1.92 million compared to losses of KD 0.95 million for the previous year. This is mainly due to the much higher increase in operating revenues than the increase in the total operating expenses.
The Bank’s financing portfolio witnessed significant increase of 78 percent reaching KD 388.16 million as on 31 December 2014 compared to KD 218 million by the end of 2013.
Commenting on the 2014 financial results, Emad A Al-Thaqeb, Chairman of Warba Bank, said: “These positive results achieved across the Bank’s operations in 2014 reflect the Bank’s excellent operational status, the assets quality, success of the strategy adopted by the Bank for seizing growth opportunities in high quality assets with minimal risks for generating robust returns over the shortto-medium term.”
Al-Thaqeb emphasized that the profits of Warba Bank resulted from an increase in operating revenues with a parallel decrease in expenses. This is due to the high quality and diversity of the Bank’s asset portfolio while maintaining high growth rates in an intensive competitive environment in the banking sector. With regard to risk management, The Bank enjoys a high quality financing portfolio with non performing finances at only 0.28 percent which is one of the best rates internationally. The Bank’s Capital Adequacy Ratio at the end of 2014 far exceeded the designated ratio stipulated by Basel III requirements and the Central Bank of Kuwait instructions reflecting the Bank’s robust financial position and solid platform supporting the Bank’s future business growth.
He added: “We have recently set our strategy for the coming three years. This strategy is a roadmap guiding our endeavors for improving and developing the Bank’s performance by applying the best
Chairman of Warba Bank Emad A Al-Thaqeb
established practices in the banking industry across various fields. The Strategy also aims at enhancing the Bank’s position and role in the local and regional markets, taking into account all recent economic and social volatilities in Kuwait and the region”.
Jassar Al-Jassar, Warba Bank Vice Chairman & Chief Executive Officer, said: “The financial results of the year 2014 reflect significant growth in all financial indicators illustrating the Bank’s solid and sound trend; The operating revenues continue to grow reaching KD 18.53 million for the year ending 31st December 2014 at an increase of 79 percent compared to 2013 where the operating revenues reached KD 10.32 million in addition to continuous asset growth where the total asset increased at 47 percent reaching KD 594.8 million for the year ending 31st December 2014 compared to KD 405.51 million by the end of 2013. This is achieved while maintaining high asset quality and continuous growth in the financing portfolio by 78 percent reaching KD 388.16 million for the period ending 31st December 2014 compared to KD 218.03 million by the end of 2013.”
“In 2015, we will continue satisfying the financing requirements of our corporate and retail customers for banking and financing services. We always seek to get closer to our customers through current and future branches in addition to our focus on providing new technological applications. The Bank also pays due attention to supporting and financing small- and medium-sized enterprises which significantly contribute to the development of the national economy and creating new job opportunities. We would like to reaffirm that our relationship with our individual and corporate customers and investors is based on business partnership for the benefit of depositors, customers and investors” added Al-Jassar.
Al-Jassar concluded “In addition to our continuous focus on the operational aspects of the Bank, we strongly believe in the significance of human capital resources particularly Kuwaiti nationals which is a key fundamental to our success. Accordingly, we have been committed from the outset to care for our employees, enhance and develop their skills for providing attractive business environment that cater for creativity and innovations in order to provide our customers with the highest quality services. From the beginning, Warba Bank has been keen on investing in Kuwaiti skilled labor where Kuwaitization in the Bank now exceeds 60 percent. The Bank always seeks to recruit Kuwaiti calibers and develop employee’s skills and talents in order to ensure that the customer receives the best services at the highest professional levels in line with the international quality standards. Customer service officers at the Bank have the highest professional certificates in this field.”
It is worthy to mention that Warba Bank has recently added a new tribute to its achievements record. The Bank has won the “2014 Best Call Centre Award” from Banker Middle East Magazine for Banking Products And Services in Kuwait by CPI FINANCIAL. This prestigious award reflects the successes that the Bank has achieved in Kuwait and the excellent services offered to its customers by satisfying all their Sharia-compliant financing and investment requirements.