The banking industry in Kuwait experienced a healthy revenue growth of 7 percent in 2011 as like the Middle East, even after revenues had stagnated the year before. But Total Net Profit of Kuwait Banking industry experienced a drop of 2% in 2011, at KWD 565.5 million as compared to KWD 575 million in 2010.
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| Source: 2011 Financial Reports |
Among the total banks net profit, National Bank of Kuwait (NBK) contributing highest share at KWD 302.4 million ie. 53%, followed by Kuwait Finance House (KFH), the leading Islamic Bank in the Middle East region, at KWD 80.3 million with 14% share, then comes Burgan Bank and Ahli Bank of Kuwait (ABK) both at 9% contribution, then followed by Ahli United Bank (AUB) at 6%, Gulf Bank come at the 6th position at 5% contribution of total net profit. Kuwait International Bank (KIB), Boubyan Bank and Commercial Bank Of Kuwait (CBK) follows with 2%, 1% and 0.1% respectively.
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| Source: 2011 Financial reports |
Compare to last year’s Net Profit, Burgan bank achieved tremendous result at KWD 50.6 million, 10 times increase from 2010 reported at KWD 4.7 million. Gulf bank has reported a 60% growth at KWD 30.6 million net profit in 2011, despite a significant decline in fourth-quarter earnings compared to the same period in 2010, which was KWD19 million. Boubyan bank achieved 31% growth at KWD 8 million net profit in 2011 compare to the last year at KWD6.1 million. 15% growth achieved by AUB with KWD 31.5 million net profit compare to KWD 27.4 million in 2010. NBK achieved 0.2% growth a net profit of KWD 302.4 million during 2011, compared to KWD 301.7 million in 2010. All other banks showed a drop in net profit compare to last year. Among them CBK showed the biggest drop in year at 98% followed by KIB 35%, then comes the region’s biggest Islamic Bank KFH at 24% and ABK with 5% drop compare to the last year net profit.
In 2011 KFH achieved total operating revenues of KWD 872.1 million with an increase of KWD 135.8 million at 18.4% growth, which highlights the bank’s leadership in the Islamic banking Industry, despite the challenging local and global competition on Islamic financial services industry witnesses in various markets.
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| Source: 2011 Financial Reports |
The total Assets of Kuwaiti banks has reached KWD 45 billion, out of which NBK reached the top at KWD 13.6 billion in 2011 with 30.4% share and 5% growth compare to the previous year. KFH achieved 8% growth in their Asset at KWD 13.46 billion with 30.1% share in 2011. Followed by Gulf Bank at KWD 4.79 billion, Burgan Bank with KWD 4.55 billion, CBK with KWD 3.71 billion, ABK with KWD 3.08 billion, AUB at KWD 2.63 billion, Boubyan bank at KWD 1.55 billion and KIB at KWD 1.12 billion.
Concerning the total assets among Kuwaiti banks, the most prominent accomplishments achieved by KFH during the past 11 years was significant, where the total assets increased from around KWD 2 billion in year 2000 to reach KWD 13.5 billion (467% growth) till the end of year 2011. This underlines KFH’s robust financial status and its strength to compete with the Kuwait’s conventional bank’s including NBK and its ability to execute its strategic plans to continue growing, expanding, and competitive. Above all KFH’s success firmly underlines that the importance and acceptance of Islamic Banking among the industry and its people.
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| Source: 2011 Financial Reports |
Concerning customer’s deposits, KFH leads the market at 16% growth at KWD 8.9 billion from the last year 2010. It is worth noting that KFH is capable of achieving increasing growth rates in customer’s deposits despite competition that became fierce during the past 5 years in the local Islamic banking field, where KFH sees its Islamic counterparts as partners, not merely competitors. KFH contributing 29% of the total Customer Deposits of Kuwaiti banks. NBK follows KFH at KWD 6.8 billion with 7% growth and 22% share among Kuwait bank’s total customer deposits. Followed by Gulf Bank with KWD 4.1 billion along with 34% growth. Burgan Bank achieved KWD 2.8 billion deposit at 9% growth and contribution share. CBK comes next with KWD 2.25 billion at drop of 1% by the contribution of 7%.
Concerning the total assets among Kuwaiti banks, the most prominent accomplishments achieved by KFH during the past 11 years was significant, where the total assets increased from around KWD 2 billion in year 2000 to reach KWD 13.5 billion (467% growth) till the end of year 2011. This underlines KFH’s robust financial status and its strength to compete with the Kuwait’s conventional bank’s including NBK and its ability to execute its strategic plans to continue growing, expanding, and competitive. Above all KFH’s success firmly underlines that the importance and acceptance of Islamic Banking among the industry and its people.
