Ahli United Bank records 10 percent growth in Q1
KUWAIT: The Bank’s revenue from core net financing activities grew by 10% amounting to KD 23.4 million during Q1 2017, up from KD 21.2 million recorded in the first quarter last year. The Bank recorded a net profit after tax of KD 16 million for Q1 2017, an increase of 3% over the KD 15.6 million net profit recorded for the same period last year. This profit is achieved following a conservative approach to provisioning and credit policies to mitigate the risks attached with the ongoing market volatility and geopolitical instability in the region.
Dr Al-Mudhaf, Chairman of Ahli United Bank (Kuwait) remarked “The Bank’s successful strategy has resulted in realizing sound key performance indicator levels during the period”. “The Bank has achieved a return on equity (ROE) of 17% and a return on assets (ROA) of 2% at the end of March 2017 being amongst the highest return indicators of banks announcing their results in the local market for the same period. The higher returns contributed in generating earnings per share (EPS) of 10.3 fils as compared with the EPS of 10 fils recorded in 2016.
The Bank’s total assets grew to reach KD 3.8 billion at the end of March 2017 up from KD 3.7 billion recorded at the end of last year. Total deposits reached KD 3.3 billion. The Bank has reported a sound capital adequacy ratio (CAR) of 17.6% being higher than the minimum regulatory required level of 13.5%.” The Chairman attributed these positive results for the period to the efforts of the Bank’s management and staff who have provided distinctive services and integrated solutions for customers, maintaining customer confidence and enhancing the presence of the Bank in Corporate Banking, Retail Banking, Private Banking & Wealth Management, and Treasury.
The Chairman stressed that the management’s success has placed the Bank among the best and safest Islamic Banks, not only locally but also regionally. The Bank has continued to receive high credit ratings from international credit rating agencies, such as Fitch, Moody’s and Capital Intelligence. The Bank maintained a credit rating of “A+” on the long term and “F1” on the short term with stable outlook by Fitch Ratings Agency, and “A2” on the local currency with stable outlook by Moody’s. Capital Intelligence affirmed the Bank’s long term credit rating of foreign currency to “A+” and enhanced the short term foreign currency rating to “A2”. All these ratings confirm the credit standing, capital quality, and stability of the Bank for future growth. The Bank obtained several awards during past one year including the “Best Islamic Bank Award in Kuwait” for the fourth consecutive year from the international magazine, The Banker, and the “Second Safest Islamic Bank in Kuwait and Fourth in the GCC” awarded by the Global Finance magazine. Furthermore, the Chairman expects further progress in the Bank’s performance with growth during the forthcoming period, notwithstanding the increased competition in the market. The Bank is committed to the continuous improvement in banking services, including the innovation of its services, products and financial solutions.
In concluding his statement, Dr Al-Mudhaf extended his thanks and appreciation to the Central Bank of Kuwait for providing valuable guidance to the Bank, to the Bank’s Board of Directors, to customers, to shareholders, and to management and staff for the confidence and support they have conferred upon the Bank. This has enabled the Bank to realize these continued achievements and maintain its preeminent position in the Kuwaiti Banking sector.