19/02/2025
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19/02/2025
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KUWAIT CITY, Feb 19: Al Ahli Bank of Kuwait (ABK) proudly announced its robust financial results for the financial year 2024, once again affirming its position as a leading financial institution.
Financial Performance
ABK reported a Net Profit of KD 52.41 million, representing a 16% increase and an increase in Earnings per Share (EPS) of 17% to 21 fils. Operating Profit increased by 11% to KD 107.41 million while Operating Income witnessed an increase of 9%, reaching KD 200.75 million, reflecting the Bank’s strong profitability and shareholder value creation.
Total Assets reached KD 7.37 billion while maintaining steady growth in Loans and Advances amounting to KD 4.83 billion, with Customer Deposits at KD 4.42 billion, affirming the Group’s reputation as a trusted financial partner. Moreover, the Bank’s Non-performing Loan (NPL) ratio stood at 1.23%, with NPL coverage at 460%, Capital Adequacy Ratio (CAR) at 16.94%, and Shareholders’ Equity at KD 628 million, further underscoring ABK’s financial stability, healthy financial position, and robust balance sheet.
The Board's proposed to distribute cash dividends of 10% equivalent to 10 fils per share, as well as bonus shares of 5% equivalent to 5 shares for every 100 shares. These recommendations are subject to the approval of the Annual General Assembly.
Added Value
On this occasion, Talal Mohammed Reza Behbehani, Chairman of ABK, expressed his happiness with the outstanding results, stating, "The profits for 2024 reflect our ability for sustainable growth and delivering added value to shareholders. They also confirm the success of our strategic plans to develop the Group's operations and operational efficiency according to the highest standards, helping us enhance our competitive position in the banking sector across various fronts."
Behbehani added that 2024 witnessed the continued implementation of the digital transformation plan across various departments and sections of the Group, pointing out the signing of numerous agreements to leverage artificial intelligence technologies and develop banking solutions, services, and products offered to individual and corporate clients.
He emphasized that throughout 2024, ABK was keen to formulate plans to address local, regional, and global economic challenges, including changes in interest rates, inflation levels, and geopolitical tensions, to protect its interests and preserve shareholders' rights.
Developments
Behbehani explained, “Last year, the Bank was upgraded to the Premier Market on Boursa Kuwait. Additionally, 2024 marked our return to debt capital markets with our US$300 million Additional Tier 1 (AT1) bond offering with a coupon rate of 6.5% per annum. The subscription exceeded 4.5 times the offered amount, reaffirming the Bank's financial trust and reputation among investors and its financial stability.
He noted that ABK achieved more than 10 global awards from institutions specializing in performance evaluation across various sectors. Among these are six awards from Global Finance Magazine for digital excellence in Kuwait and the Middle East, two awards from MEED for Excellence in Customer Protection/Fraud Control in Kuwait, and Best Retail Bank in Egypt. This is in addition to five awards from International Business Magazine across Kuwait and Egypt. The Bank was also recognized as Best Investor Relationship Bank by International Finance and for Best Corporate Governance Banking by The Global Economics, among others.
Behbehani added that the Group has consistently maintained its high credit ratings, with an A by Fitch and an A2 by Moody’s, underscoring the Group's robust financial position and its ability to tackle various challenges.
Integrated Operations
The Chairman stated that the Group has focused on achieving operational integration in Kuwait, Egypt, and the United Arab Emirates. This effort includes the introduction of new banking services, products, and solutions tailored to all customer segments.
Behbehani announced the launch of the group's five-year strategy, focusing on environmental, social, and governance (ESG) and sustainability. This initiative aims to foster sustainable growth and minimize the environmental impact of the Bank's operations, highlighting its role as a responsible financial institution in the market. He also highlighted the publication of the fourth annual sustainability report, which reviews significant developments across the Group's operations and activities in all the markets where it operates.
Furthermore, he noted that ABK Capital, ABK’s investment arm, has been actively enhancing its products by launching several new investment portfolios and forming global partnerships. The company aims to provide exceptional benefits to clients as part of its strategy to strengthen its presence in the investment sector and stay abreast of developments in this area.
Continued Success
On his part, Abdulla Al Sumait, Acting Group Chief Executive Officer at ABK, said, "In 2024, we successfully achieved growth in our financial indicators once again. This success stems from our consistent adaptation to both local and global market developments, engaging in carefully assessed financing operations, and innovating new services, solutions, and products that continue to attract more customers to our ever-expanding family."
He noted that over the past year, the Group participated in numerous financing deals within Kuwait and the Gulf Cooperation Council (GCC) countries. This participation reflects the strong trust companies have in the Bank to meet their needs in developing projects and enhancing operational activities.
Al Sumait also mentioned that 2024 saw the launch of a newly revamped website to stay abreast of technological advancements. This update was accompanied by the introduction of various digital solutions, meeting the growing demand from customers for secure and fast banking and financial transactions using their smart devices, available 24/7.
Achievements
Al Sumait highlighted that 2024 marks a significant milestone with the continuous growth in both individual and corporate clients. The focus has been on enhancing and simplifying the services provided to ensure customer satisfaction during financial and banking transactions. Additionally, clients were rewarded with various promotional campaigns and exclusive benefits tailored to their needs.
He also highlighted that in 2024, the WAMD service for instant money transfers in collaboration with KNET was introduced. This is alongside a RMB (Chinese Yuan) currency transfer service for businesses. Additionally, several special packages were launched catering to diverse customer segments. These include the ‘Al Tajer Plus’ package designed to help merchants expand their operations and projects, as well as a package specifically for oil sector employees, among others.
Furthermore, Al Sumait explained that in 2024, the Group focused on enhancing employee capabilities by engaging in various training programs and recruiting new talent. Additionally, efforts were made to improve the work environment and ensure equality among employees.
Branches and Social Responsibility
Al Sumait highlighted the ongoing plan to develop the Bank's branches in both Kuwait and Egypt. Additionally, ABK is enhancing its operations in the UAE by introducing more services, such as mortgage loans, signing a Real Estate Escrow Account agreement, and establishing a Corporate Services Desk, among other initiatives.
He noted that last year featured the sponsorship of events across health, education, culture, and sports sectors. “These efforts are part of an evolving social responsibility program designed to meet the diverse needs of communities in Kuwait, Egypt, and the UAE,” Al Sumait added.
Al Sumait concluded, "In 2024, we continued supporting the 'Let’s Be Aware' banking awareness campaign to promote financial inclusion in Kuwaiti society. This was achieved by delivering exceptional and purposeful awareness content within our bank branches and digital platforms, organizing numerous events and competitions for the public, and participating in television and radio interviews. These efforts were conducted in collaboration with the Central Bank of Kuwait and the Kuwait Banking Association."
