23/10/2024
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23/10/2024
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KUWAIT CITY, Oct 23: Commercial Bank of Kuwait announced a net profit of KD 88.5 million for the nine months period ended 30 September 2024. Operating profit before provisions at KD 89.1 million compared to KD 86.4 million for the same period of last year is higher by 3%.Earnings per share for the current period is 49.4 fils (September2023: 53.1 fils).
| Financial highlights: | (KD Million) | (KD Million) | |
|---|---|---|---|
| Ninemonths2024 | Ninemonths2023 | Change | |
| Operating profit before provisions | 89.1 | 86.4 | 3.0% |
| Net Interest Income | 88.6 | 84.6 | 4.8% |
| Fee and Commission Income | 35.1 | 32.4 | 8.3% |
| Total Assets | 4,617.2 | 4,097.2 | 12.7% |
| Loans and advances | 2,747.2 | 2,386.5 | 15.1% |
| Net profits attributable to Shareholders of the Bank | 88.5 | 99.1 | -10.7% |
| Non-Performing Loans | 0 | 0 | - |
Regulatory Ratios:
Regulatory ratios remained strong andcontinue to be above the Central Bank’s statutory requirements. Capital Adequacy Ratio is at 17.6%, Liquidity Coverage Ratio 310.3%, Net Stable Funding Ratio 112.9% andLeverage ratio 10.1%.
Operational Performance:
Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, is pleased to present the Bank’s results for the first nine months of 2024. Operating profit before provisions reflects a healthy year-on-year growth of KD 2.6 million (3.0%) driven by growth in loansby KD 361 million and 8.3% increase in fee income. Net Profit at KD 88.5millionis lower by KD 10.6 million (10.7%), as last year included higher recoveries resulting from a non-recurring event.
Performance Ratios:
Sheikh Ahmad emphasised that Al-Tijari continues to report healthy performance ratios relative to its history and this stems from the strategic initiatives taken in the previous years.Net interest margin 2.78% (Ytd Sep2023: 2.80%), Return on Equity 17.7% (Ytd Sep2023: 20.0%) and Return on Assets 2.7% (Ytd Sep2023: 3.2%).Cost to income ratio 33.1% continues to be one of the lowest amongst Kuwaiti banks.
Business updates:
Sheikh Ahmad added that the Bank is equipped with the latest technology and digital services, enabling it to continue its successful digital transformation journey by improving its digital platforms and introducing new customer services.
Sheikh Ahmad further added during Q3, Moody’s ratings had upgraded Bank’s long and short-term deposit ratings to A2/P-1 from A3/P-2 and changed the outlook on the Bank's long-term deposit ratings to stable from positive. Long-term Counterparty Risk Assessment (CR Assessment) was also upgraded to A1(cr) from A2(cr) and long-term Counterparty Risk Ratings (CRR) to A1 from A2. The rating upgrades were driven by Moody’s decision to upgrade the bank's Baseline Credit Assessment (BCA) and Adjusted BCA to baa3 from ba1.
This ratings upgrade decision reflects the impact of successful strategy implementation by the Bank, improved asset quality, strong profitability supported by higher margins and sound fee income, strong capitalisation and high reserves to absorb credit losses and significant liquidity buffers.
During Q3, Al-Tijari successfully completed KD 100 million subordinated Tier 2 bond program post issuance of KD 50 million second tranche bond for a tenor of 10 years, callable after 5 years. The KD denominated bond was priced at a floating interest rate of 3% over the Central Bank discount rate. Proceeds from bond issuancehelped to increase the Tier 2 capital and enhanced Bank’s capacity to finance bigger projects.
Thank You Note
Sheikh Ahmad concluded by extending his sincere appreciation to the Central Bank of Kuwait and other regulatory authorities for their supervision and support to the Banking sector and to the Bank’s Shareholders, Executive Management as well as all staff for their dedication and rigorous efforts to make Al-Tijari as Bank of Choice.
