KFH announced KD 20.1 million net profit in Q1 2012

Kuwait Finance House (KFH) Chairman Sameer Al-Nafisi announced that KFH has achieved total revenues of KD 182.8 million during the first quarter of 2012. Total profits reached KD 57.4 million, including KD 36.9 million estimated profit for investment depositors.

Net profit for shareholders reached KD 20.1 million, while earnings per share reached 7 fils.

Total assets increased to KD 14.2 billion, with KD 1.4 billion or 11.2% increase over the same period last year. Deposits increased to KD 9.2 billion, with KD 938 million or 11.4% increase over same period last year.

Total shareholders’ equity reached KD 1.3 billion, with KD 14 million or 1.1% increase over same period last year.

Al-Nafisi highlighted the bank’s ability to implement its plans and strategies even in the most challenging of time, which increases the potential of improving financial indicators during the coming period. He added that KFH holds a leading position in operating performance among Kuwaiti banks, and stressed that the profits reflect the successful plans that reinforces precautionary provisions. He went on to say that KFH still leads Islamic banking category, despite fierce competition in local and global markets. He expected that the transformation program that the bank has begun to implement to be rewarding during the coming period.

He noted that the vision and strategic objectives for the transformation program are  focused and competitive, and the bank is expected to reap benefits during the coming period. He explained that the restructuring process will lay the foundation for a new growth phase, since Islamic banking is currently witnessing significant local and global developments. KFH is capable of taking advantage of those developments, which will lead to better returns and added-value for its shareholders and depositors.

Moreover, he said that KFH and its subsidiaries have been recognized internationally and received global awards, not to mention maintaining positive ratings from global prestigious rating agencies. He stated that KFH is interested in expanding its client base in the local market and opening new branches. KFH has also focus on improving the technology platforms for better servicing its customer base, and has equally excelled in direct and remote sales units.

Furthermore, he underlined the importance of the GCC markets, since they serve as an economy and social strategic safety haven for Kuwait. He added that KFH’s overseas markets serve as a platform to enter other markets in neighboring countries in Europe and south East Asia.

Al-Nafisi mentioned that KFH-Turkey has managed to cement its status as one of the best banks in Turkey, which is evident by the increase in deposits that reached 8% and assets growth of  19% and a 17% increase in revenues compared to same period last year. KFH Turkey’s general assembly decided to distribute 16% as dividends, and the bank will expand in neighboring markets through opening branches in Germany, Dubai, and Bahrain. The bank has also offered its clients Sukuk and investment gold fund.

Burgan Bank Group reports KD 17.5 million 1Q2012 net profit, 48 % growth

Burgan Bank Group reported Wednesday 17.5 million Kuwaiti dinars net profits for the first quarter of 2012 (growth of 48 percent), compared to KD 11.8 million for the same period in 2011. Earnings per share increased to 11.9 Kuwaiti fils compared to 7.8 fils for the same period in 2011. This was announced in a press release on Wednesday.

Revenues has reached to KD 42.6 million reflecting a growth of 10 percent from KD 38.8 million reported in the first quarter of 2011. Operating profit grew by 15 percent to reach KD 26.6 million compared to KD 23 million for the same period in 2011. Customers' deposits grew to KD 3,040 million, a 19% increase from 1Q 2011, while loans grew by seven percent reaching KD 2,406 million.

The consolidated financials include the results of the group's operations in Kuwait as well as its subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, in which Burgan Bank has a majority stake. During the first quarter of 2012, the subsidiaries have demonstrated a steady growth path and maintained profitability. 

Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said, "We are pleased with our results during the first quarter of the year. Our financial performance continues to be solid, and the Group demonstrates a consistent growth trend across its operations despite the slow economic growth in the region".

"Burgan Bank Group's conservative strategy, prudent risk approach, and sustainable financial performance helped maintain the group's overall position locally as well as regionally. The group announced earlier that it has entered into an agreement with Eurobank EFG to acquire a 99.26 percent stake in Eurobank Tekfen, Turkey. The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait ("CBK") and Turkey's Banking Regulation and Supervision Agency (BRSA). The value of this transaction reflects a clear strategic approach, where Burgan Bank Group acquired an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey, with a total price that equates to the cost of obtaining a license for an initial operational start-up," added Al-Ajeel.

During the first quarter of 2012, Global Banking & Finance Review recognized Burgan Bank on two levels, the 'Best Banking Group in MENA', where its turnaround performance and delivery of sound results across its operations were acknowledged, and the 'Best Corporate Bank in Kuwait', in which the Kuwait operations Corporate Banking Group's superior performance and commitment of maintaining exceptional growth levels by financing a range of projects in diversified industry sectors were realized.

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. Also to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment," concluded Al-Ajeel.

KIB achieves operational profit of KD 10.1 million in Q1 2012

Chairman of Kuwait International Bank (KIB) Sheikh Mohammed Al-Sabah announced that the bank achieved about four million Kuwaiti dinars in profits for the first quarter (Q1) of 2012 compared to three million dinars in Q1 last year, with a 34 percent growth rate. He added that the bank's investments during Q1 of this year were positively reflected on the total operational revenues, where the bank achieved KD 10.1 growth in this quarter compared to KD 9.7 million for Q1 last year, with four percent growth rate. In a press statement, he explained that the profits reinforced the value of shareholders' equity to reach KD 206.8 million compared to KD 198.8 during the same period last year. He asserted that such positive results during the first three months are the fruits of the hard work of the employees who worked relentlessly to increase operational profit and lower cost of financing.

Al-Sabah stressed that the bank's executive management that is spearheaded by Acting chief executive officer (CEO) Loay Makames highlights the level of quality of operations, where it carefully selected financing operations to limit risks.

The value of net financing assets reached KD 712 million by the end of Q1 this year compared to KD 703 last year. In addition, the total value of assets increased in Q1 to reach KD 1.17 billion with a 4 percent increase. Deposits accounts increased in value to reach KD 743 million in March 2012 after the value was KD 688 million by end of Q1 of 2011. Average rate for shareholders' equity reached 7.76 percent, while earnings per share reached 4.3 Kuwaiti fils compared to 3.22 fils by end of Q1 last year.

Moreover, he revealed that since the bank plans to cement its financial status and increase its profits, it will open more branches this year, in order to geographically spread throughout Kuwait.

-Al Watan-

Al Ahli Bank of Kuwait (ABK) records Net Profit of KD 11.4 million for 1Q2012

Al Ahli Bank of Kuwait (ABK) reported a net profit of KD11.4 million for the first quarter ended 31 March 2012 which is 30% drop compare to the same period last year. Earnings per share amounted to 8 fils with return on assets of 1.5 % and return equity of 9.4 %. Operating profits before provisions increased to KD22.8 million, up from KD19.7 million for the same period in 2011.

 Commenting on the financial results of the first quarter 2012, Ahmed Yousuf Al Behbehani, the Chairman of the Board, stated the following: “ABK managed to achieve profits in spite of the stressful conditions of the world economy, the debt crisis in the Euro Zone. The bank has taken more precautionary provisions to face any unexpected emergencies in the future.”

“The strong capital base and the Capital Adequacy Ratio of around 25% enhance the Bank’s ability to grow and expand its operations under the current market conditions. The Bank’s success in maintaining its credit ratings issued by the international credit rating agencies enhances the confidence in the strong capital position of the bank and its ability to tolerate risks and achieve profits”, added Behbehani.

The Bank periodically reviews and amends its strategy to cope with any exceptional, conditions and the prevailing economic conditions. It focused on minimizing risks across our business areas, improving operational efficiency and enhancing value for our shareholders and customers, providing high quality banking services, and employing high caliber banking staff to service ABK customers.

Regarding  the economic situations for  2012, Behbehani explained that:
“The economic conditions in the area are still difficult in the light of the political turmoil in some countries of the Middle East and the stressed economies in Euro zone. The situation may become more difficult, with the economic recession, volatility of markets, slow growth of world and regional economies. However, the effective risk management and tight control over the loan portfolio will minimize the risks and maintain the strong financial position of ABK and enhance its ability to achieve good profits for its shareholders”. He concluded his statement by expressing his hope to accelerate the launch of new development projects which will push forward the economy wheel to which everyone looking forward.

Boubyan Bank Q12012 profits increase by 17% to KD 2.48 million

Providing the fastest growth rate among the Islamic banks in Kuwait, Boubyan Bank reported net profits of 2.48 million Kuwaiti dinars for the first quarter in 2012 compared to KD 2.11 million for the equivalent period of 2011, by a growth rate of 17 percent due to hike in the bank's operating profits amounting to KD 7.5 million. This was stated in a press release on Tuesday.

Adel Al-Majed, Chairman and Managing Director of Boubyan Bank, highlighted that Boubyan managed, in a short span from the strategic development in 2009, to prove its potential to compete in the Islamic product and service market, which witnesses continuous growth of customer acquisition.

Al-Majed added, "Many of our strategic targets for 2010-2014 have been accomplished by the bank, which is now bound back to profitability thanks to the banking products and services and financing solutions that accommodate the individual and corporate customers' needs". "This is backed by a hike in our market share of deposits during the period from December 2009 to February 2012 from.45 percent to 3.95 percent, and of finance from 2.34 percent to 4.23 percent," Al-Majed added.

Boubyan Bank reported an increase in financing income for the first quarter of 2012 by 36 percent to touch KD 11.8 million against KD 8.7 million for the comparative period of 2011, and an increase by 21 percent to KD 1.249 billion compared to KD 1.036 billion in 2011.

Best  among the positive highlight is was the booming financing portfolio, which amounted to KD 1.092 billion at the end of March 2012 compared to KD 889 million, a growth rate of 23 percent in addition to the increasing number of bank's customers.

Total assets of the bank increased, at the end of March 2012, to KD 1.618 billion compared to KD 1.424 billion in March 2011, i.e. a growth rate of 14 percent. Total shareholders' equity increased to KD 249 million against KD 242 million in 2011 giving rise to a Capital Adequacy Ratio of 24 percent compared to the minimum regulatory ratio of 12 percent, as stipulated by the Central Bank of Kuwait.
Kuwait News Agency

NBK reports net profit of KD 81($292) million for Q1 2012

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported net profits of KD 81.0 million ($292 million) for the first quarter of 2012 compared with KD 80.8 million ($ 291 million) for the same period in 2011. First quarter 2012 net profits came 5.5% more of the fourth quarter of 2011. As of end of March 2012, NBK Group’s total assets reached KD 14.4 billion ($ 51.8 billion) up 3.5% compared to March 2011, while total shareholders’ equity increased by 5.5% year-on-year to KD 2.3 billion ($ 8.1 billion). Profitability indicators remained among the highest in the region with ROA of 2.33% and ROE of 15.0%. NBK’s net operating income continued to improve in the 1Q2012 reaching KD 133.7 million ($481.4 million).

Ibrahim Dabdoub, NBK’s Group Chief Executive Officer, said “NBK’s strong financial position underpins the bank’s ability to generate solid performance despite the challenging operating environment”. “Our focus on core banking operations in and outside Kuwait remained a differentiator as our regional operations delivered resilient performance and contributed to the strong profitability achieved in the first quarter. This along with the strengthening of Boubyan Bank’s (47.3% owned by NBK) market position and profitability continued to support NBK’s efforts to better diversify its income sources.” Dabdoub added.

Dabdoub also highlighted that NBK’s fundamental strengths, along with its clear strategic vision, robust risk management practices and sustainable financial performance helped the bank maintain its strong position through different crises and continued to earn it international recognition. In 2011, NBK maintained its top ranking among Middle Eastern banks and was named the “Best Bank in the Middle East” by Euromoney, The Banker and Global Finance magazines. Additionally, NBK moved 14 positions to rank 33 in Global Finance’s list of the 50 safest banks in the world.

NBK continues to enjoy the widest banking presence in Kuwait with 67 branches, which together with its growing international presence totals 176 branches worldwide. NBK’s international presence spans many of the world’s leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Qatar, Saudi Arabia, the UAE, and Turkey. NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody’s, Fitch Ratings and Standard and Poor’s. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team.