KUWAIT CITY, Feb 10: Warba Bank announced today a net profit of KD 22.4 million, reflecting a 13.9% increase from the previous year. This translates to earnings per share (EPS) of 8.85 fils as of 31 December 2024, representing a 16.4% growth year-over-year. The Board of Directors has recommended a 6% bonus share distribution to shareholders registered in the bank’s records at the General Assembly. This recommendation is subject to the approval of the General Assembly and regulatory authorities.

These results underscore the success of the bank’s prudent strategy and its innovative approach to delivering advanced banking services and products, which align with the aspirations of its customers and shareholders. The strong performance also highlights the bank’s commitment to expanding its business and solidifying its position as a leading Islamic financial institution, despite ongoing regional and international geopolitical and economic challenges.

The bank’s financial performance was driven by a 25.2% increase in net operating income, which reached KD 80.3 million, compared to the previous year. Net financing income also rose by 24.4% to KD 54.8 million, while total comprehensive income for the year increased by 10.4% to KD 270.4 million.

On the balance sheet front, total assets grew by 9.6% to KD 5.29 billion, while shareholders’ equity reached KD 335.9 million, marking a 6.5% increase compared to the previous year.

Financing receivables increased by 5.5% to KD 3.64 billion, and depositors’ accounts grew by 8.3% to KD 3.15 billion by the end of the fiscal year.

Results Reflect the Bank’s Commitment to Leadership

Commenting on these results, Warba Bank’s Chairman, Mr. Hamad Musaed Al Sayer, stated: “Warba Bank continues to deliver exceptional financial performance, driven by its integrated strategy, which has enabled the bank to expand its operations and establish a strong foundation for sustainable growth. This success has been achieved despite ongoing geopolitical and economic challenges in the Middle East region.”

Al Sayer added: “The bank has successfully implemented its strategy, which focuses on digital transformation to diversify banking products and services, alongside a conservative investment approach that emphasizes risk-balanced policies. This strategy has strengthened the bank’s ability to anticipate and meet the evolving needs of customers, earning their trust, safeguarding shareholders’ rights, and ensuring financial stability. Our plans have been centered on expanding our banking operations and introducing innovative digital and financing solutions tailored to the growing demands of the local market.”

Al Sayer highlighted that Warba Bank has recently distinguished itself by launching cutting-edge digital services and products, marking the culmination of its ongoing efforts and investments in developing innovative banking solutions. These initiatives aim to enhance service efficiency and streamline transactions for customers of all sizes and requirements.

He said: “Warba Bank’s direction reflects its future vision to become the bank of choice, delivering value in every aspect of its operations. This vision is embodied in our new slogan, launched at the end of last year: ‘Let’s Own Tomorrow.’ We aim to maintain our leadership by adopting innovative banking solutions that address the changing needs of our customers and support their future aspirations. Our focus on technology, digital transformation, and operational sustainability underscores our commitment to providing an advanced and comprehensive banking experience.”

Al Sayer concluded: “By focusing on innovation and sustainability, Warba Bank continues to achieve milestones that reinforce its position as a modern Islamic bank, combining ethical principles, rich heritage, and future aspirations. We strive to be a trusted partner in building a better tomorrow for all segments of society in Kuwait.”

Significant Achievements in 2024

2024 marked a pivotal year in Warba Bank’s operational journey as it continued to develop and grow, solidifying its position as a leading Kuwaiti Islamic bank with over a decade of experience. Throughout the year, the bank introduced a range of innovative banking products and services, many of which were first-to-market in Kuwait. These initiatives reflect Warba Bank’s commitment to delivering advanced solutions that align with the evolving aspirations of its customers, driven by a robust strategy focused on sustainable expansion.

Despite global economic shifts and regional tensions, the bank maintained stable performance, leveraging its diversified business model and ability to provide integrated banking solutions that deliver sustainable value to customers and shareholders. This resilience has reinforced Warba Bank’s leading position in the banking sector.

Commenting on these achievements, Warba Bank Chief Executive Officer, Mr. Shaheen Hamad Al-Ghanem, said: “Our earnings are the result of our strategy to achieve sustainable growth through investments in technology and innovative product offerings. We remain committed to expanding our digital footprint and enhancing the customer experience by delivering advanced solutions that align with the rapid transformations in the banking sector.”

Al-Ghanem highlighted the bank’s operational milestones in 2024, most notably the issuance of sustainable green sukuk, listed on the Nasdaq Dubai and London Stock Exchange. This milestone made Warba Bank the first Islamic bank in Kuwait to issue such sukuk, demonstrating its commitment to supporting global efforts to combat climate change. These sukuk are designed to finance projects that promote the green economy and sustainable development, with a focus on renewable energy and environmental resource management.

Al-Ghanem added: “This achievement reflects our dedication to the principles of Islamic Sharia, as well as our social and environmental responsibilities. By innovating financial solutions, we have positioned Kuwait among the global leaders investing in sustainable finance. Our efforts extend beyond this, as we continue to invest in Sharia-compliant banking technologies and nurture young talent, empowering future generations to drive progress in the banking sector and beyond.”

Al-Ghanem also emphasized the bank’s focus on delivering flexible and seamless services to enhance customer satisfaction. A standout initiative in 2024 was the launch of the “Warba Advisor,” Kuwait’s first AI-powered personal financial advisor. This service provides customers with personalized financial advice, leveraging data analysis and machine learning to help them make informed decisions tailored to their diverse needs.

Al-Ghanem concluded: “Warba Bank’s vision is rooted in our commitment to offering services and products that align with modern trends while adhering to the principles of Islamic Sharia. We strive to meet customer needs with flexibility and transparency, preserving our heritage and excellence. Our strategy also includes a strong focus on community engagement, supporting initiatives that equip younger generations with the skills and knowledge to compete in the future. Additionally, we prioritize community issues such as health, education, and the preservation of our local heritage.”

2024 Milestones

Warba Bank announced several milestones in 2024 as part of its commitment to qualitative development and innovation. Among the most notable achievements was the launch of its premium banking service, Royal Banking, tailored to meet the unique needs of high-net-worth individuals. This service is designed to address their specialized banking requirements and investment goals, reflecting the bank’s strategy to expand its offerings and deliver exceptional, personalized experiences that align with the aspirations of each customer segment.

In a pioneering move, Warba Bank became the first bank in Kuwait to introduce an AI-powered personal banking advisor. This initiative is part of the bank’s broader digital transformation strategy, aimed at automating services, enhancing operational efficiency, and maintaining a competitive edge in the financial sector. By leveraging artificial intelligence, the bank provides advanced, personalized financial consultations, improving customer engagement and satisfaction.

For its corporate clients, Warba Bank introduced the iPos smart wireless point-of-sale device, an innovative solution designed to revolutionize how merchants manage their businesses. This advanced device aligns with the bank’s vision to create unique value in the banking sector and beyond, offering new opportunities for both individuals and businesses to streamline operations and enhance efficiency.

Global Recognitions

In 2024, Warba Bank received a series of prestigious awards, cementing its reputation as a leader in innovation, sustainability and digital banking. Among these accolades was the “Most Sustainable Bank in Kuwait” award from International Business Magazine, recognizing the bank’s commitment to environmental, social, and governance (ESG) principles. The bank was also honored with the “Best Islamic Digital Banking Services in Kuwait” award by the same publication, which evaluates institutions based on market trends, economic stability, sustainability reports, corporate social responsibility (CSR) initiatives, and the adoption of innovative technologies.

Warba Bank further distinguished itself by winning two awards from International Finance Magazine: the “Most Innovative Islamic Banking Product – Sustainability Sukuk – Kuwait” and the “Most Socially Responsible Bank – Kuwait”. These awards come as the bank continues to develop high-quality products and services that contribute to long-term sustainability and benefit all segments of society. They also reflect Warba Bank’s unwavering commitment to its community and its role as a socially responsible institution.

Additionally, Warba Bank was honored by Network International with the “Insightful Leadership and Pioneering Card Services” award, showcasing the bank’s recent introduction of innovative services, such as the issuance of instant credit and prepaid cards, which allow customers to order and receive a fully activated card within just five minutes. The bank also implemented advanced interactive communication solutions to enhance fraud prevention and streamline payment recovery processes.

Further solidifying its leadership in digital banking, Warba Bank received the “Highest Growth in Credit Card Activation on Digital Wallets” award from MasterCard for 2024 in Kuwait. This achievement reflects the bank’s significant growth in digital wallet adoption and its success in building customer trust and confidence.

Community Investment

Warba Bank is deeply committed to investing in social responsibility programs and initiatives that drive sustainable development and support diverse segments of society. The bank’s social responsibility strategy is built on several key pillars, designed to promote sustainability across economic, social and environmental dimensions. Through these pillars, Warba Bank aims to implement impactful programs that align with its cultural and ethical values while addressing the needs of the community.

One of the bank’s most notable initiatives is its focus on youth empowerment. Through programs like “Rowad,” Warba Bank works to develop the skills of Kuwaiti youth, foster creativity and innovation, and cultivate the next generation of leaders. Additionally, the bank is dedicated to environmental preservation, partnering with organizations such as Climate Partner to reduce carbon emissions from employee travel. Warba Bank also promotes sustainable agriculture by distributing Moringa seedlings, encouraging eco-friendly practices within the community.

Warba Bank also collaborates with local institutions to raise awareness about public health. Initiatives such as the “The Healthy Office” program educate employees on physical and mental wellbeing, while the bank actively participates in national campaigns like the Breast Cancer Awareness Month. Furthermore, Warba Bank demonstrates its commitment to cultural preservation by sponsoring heritage activities and supporting events that celebrate and safeguard Kuwait’s national identity.

Investing in Digital Infrastructure

Warba Bank continued to strengthen its digital infrastructure, focusing on enhancing banking applications and introducing innovative services such as “Customer Onboarding”. The service streamlined the process of opening new accounts as Warba commits to delivering banking solutions that meet the highest international standards. These advancements reflect the bank’s dedication to leveraging technology to improve customer experience and operational efficiency.

A Bright Year and a Promising Vision

These achievements mark another milestone in Warba Bank’s journey as a modern, integrated financial institution that harmonizes Islamic values with technology.

Commenting on the bank’s progress, Al Sayer stated: “Warba Bank is the people’s bank, established by an Amiri decree to serve as a pillar of the national economy. With these results, we are confident in our steady progress toward realizing our vision of a sustainable banking future that benefits generations to come.”

Warba Bank is one of Kuwait’s leading Islamic financial institutions, operating in full compliance with Sharia principles. The bank has solidified its position as a pioneer in offering integrated services and products, particularly in the digital space, tailored to meet the unique needs of its customers and simplify their banking experience. Alongside its focus on innovation, Warba Bank remains deeply committed to supporting community initiatives that add value and contribute to building a brighter future for all.