Tijari declares operating profit before provision KD 54.1m for H1 of 2018

CBK makes a net profit of KD 6m for first six months of 2018

Sheikh Ahmad Duaij Al-Sabah

KUWAIT: Commercial Bank of Kuwait announced an operating profit before provision KD 54.1 million compared to KD 53.2 million for the 1st half of 2017. The net profit of KD 6.0 million for the first six months of 2018 is higher by KD 4.0 million as compared to last year. The Bank witnessed growth in all the key areas of its business. Net interest income grew by 2.8 percent, fee income by 2.0 percent, dividend income by 14.1 percent and the foreign exchange income grew at robust rate of 157.9 percent.

Sheikh Ahmad Duaij Al-Sabah, the Bank’s Chairman, commentated that the Bank’s strategic objectives to diversify its income sources and mitigation of risks, particularly geographical and sector concentration are being pursued. This strategy bore its fruit and will continue yielding benefits in the future too. The loans portfolio is now well diversified by reduced concentration in higher risk sectors and the deposit base has also grown.

Sheikh Ahmad added that Bank’s total assets are KD 4,262 million, mainly comprising of KD 2,137 million of loan portfolios and KD 489 million of investment securities. The Banks’ conservative approach towards growth, maintenance and improvement in the quality of its assets will continue during rest of year 2018 in order to meet the challenges of volatile economic and geopolitical situation in the region, as the main emphasis is on quality not quantity. Sheikh Ahmad further commented that the Bank will continue its balanced strategy and actively continue financing new projects of national importance with public and private partnership by efficient management of risks and associated returns.

Sheikh Ahmad further added that the Bank’s capital adequacy ratio at the end of June 2018 was at 19.0 percent, the leverage ratio at 11.9 percent, net stable funding ratio at 116.0 and liquidity coverage ratio at 210 percent, this comfortably exceeds the regulatory requirement set by the Central Bank of Kuwait. The Bank continues to demonstrate its cost leadership with operational efficiency, a competitive advantage for the Bank, which continues to maintain one of the lowest cost/income ratios among Kuwait banks at 30.3 percent for the half year ended 30th June 2018.

He pointed out that we will continue investing in technology and human capital to meet the customers’ expectations by providing effective and efficient service at all touch points through digitalization and simplification of processes and ease of contact. Some of the new initiatives taken during current year are introduction of largest prize money in the history of banks in Kuwait to Najma account holders, and customers can now complete several tasks online through the mobile application, without having to visit a branch, such as: update civil ID information, enable their cards (debit/credit) before travelling, NFC on debit card payments (tapping card) and create and activate beneficiaries. Moreover, customer can have easy access to their accounts by using face ID feature on their iPhone.

Sheikh Ahmad took the opportunity to thank the Bank’s shareholders, valued customers, staff and regulatory authorities, emphasizing that the Bank’s Management continues to implement all the required policies to protect the interest of all stakeholders.

This article was published on 15/08/2018