ABK records KD 105.5m operating profit for 2019
Bank achieved a net profit of KD 28.7m and earnings per share reached 14 fils
KUWAIT: Al Ahli Bank of Kuwait (ABK) yesterday announced the Bank’s results for Fiscal Year end 2019. Overall the bank had a steady year with both operating income and operating profit up by 2 percent to reach KD 172.5 million and KD 105.5 million respectively. The bank achieved a net profit of KD 28.7 million and earnings per share reached 14 fils. Based on this financial performance, the Board of Directors is proposing a dividend of 7 fils per share, subject to approval at the Annual General Meeting, and from the regulatory authorities.
Talal Reza Behbehani, Chairman of ABK said: “Overall the Bank has continued to perform well with income levels increasing. The reduction in net profit witnessed in the current year was the result of a very conservative provisioning and write-off policy, which was applied on fully secured but non-performing legacy credits. The bank’s asset quality remains very robust, with an NPL ratio at 1.46 percent and NPL provision coverage of 365 percent. The Capital
Adequacy Ratio also stood at a healthy 18.69 percent, comfortably exceeding the regulatory ratio, with shareholders’ equity at KD 599 million.”
ABK continued to maintain its strong investment grade ratings from international rating agencies Fitch A+ (Stable), and Moody’s A2 (stable) which is the second best rated conventional bank in Kuwait.
These ratings reflect the Bank’s strong capital position, resilient earnings capacity, stable funding and liquidity sources.
Commenting on ABK’s performance from overseas operations Behbehani said: “International operations now contribute to around 30 percent of ABK’s operating income. ABK-Egypt has had another very successful year with operating income up by 40 percent and net profit increasing by 52 percent while ABK’s UAE operations have also performed well with an increase in income and profit. ABK-DIFC has been extremely successful since opening in 2018, offering a convenient offshore booking office for local and regional corporates, regional loan syndications, and large project finance transactions.”
In closing he said: “For 2020 we will continue with our ‘Simplify & Transform’ strategy, an ambitious program of new customer experiences and digital transformation, which will enhance operational efficiencies and improve customer satisfaction.”