Operating revenues amount to KD 24.8 mln; EPS 9.4 fils
KUWAIT CITY: The Board of Directors of Ahli United Bank (Kuwait) chaired by Dr Anwar Al-Mudhaf, Chairman of the Board, endorsed the financial statements for the first quarter of the present year. These statements showed that the bank realized net profits by KD 12.1 million, i.e. an increase of 10.9% compared with the corresponding period of the previous year. These profits were generated from operating revenues amounted to KD 24.8 million, and the earning per share reached 9.4 fils against 8.5 fils for the corresponding period of the previous year. This reflects the strength of the financial position of the bank and its capability to continue realizing operating profits.
In this occasion, Dr Al-Mudhaf, Chairman of the Board of Directors of Ahli United Bank (Kuwait) said that, "with the grace of Allah, our bank achieved rising ratios in most of the financial indicators in the first quarter of 2014, whereby total assets rose to KD 3,371 million at the end of the first quarter of 2014, compared to KD 3165 million as on Dec 31, 2013. Customer deposits grew also by 6.6% to reach KD 2,231 million at the end of the first quarter of 2014, compared to KD 2,093 million as on Dec 31, 2013. The bank realized also high ratios in the average return on shareholders' equity (ROE) and the average return on total assets (ROA) by 15.5% and 1.5% respectively, along with the satisfactory ratio of capital adequacy of 16.8% as at the end of the first quarter of 2014. Dr Al-Mudhaf stressed that these positive results are the outgrowth of the prudent management and unwearied efforts exerted by the bank board of directors and its staff members who succeeded to maintain success and stability of Ahli United Bank business course of action.
Dr Al-Mudhaf said also that the revenues realized by Ahli United Bank (Kuwait) in the investment deposits during the first quarter of the present year 2014 surpassed their peers in the market, and represented the highest returns in Kuwait, whereby the bank business results on the first quarter of 2014 showed that profit distribution rates in KD annual deposits reached 1.96%. the return on investment deposits for the six-month deposits reached 1.59%, the return on KD investment saving accounts reached 1.45%. Ahli United Bank (Kuwait) avails an advantage to depositors in that it distributes profits on quarterly basis, thereby depositors maintain their rights in the profits realized in the preceding periods for each quarter independently, in accordance with the results announced for these periods.
Dr Al-Mudhaf stated that the increase in net profits during the first quarter of this year was attributable to the collaborated efforts of the bank management targeting high performance ratios in various activities, in terms of rendering distinguished service to customers, the integrated solutions, enhancing the presence of Al-Motahid in retail banking in the marketplace, corporate finance and treasury services, taking into account to diversify the sources of revenues, distribution of risk, and the rising demands of customers in terms of type, quality and volume. This enhances the culture of inter-reaction with changes and the continued development in the bank, considering that these results reflect a balanced approach between realizing high profit ratios on the one hand, and prudent credit policy on the other hand, within the framework of overall corporate governance standards.
Dr Al-Mudhaf affirmed that Al-Motahid management succeeded to place the bank among the best Islamic banks, not only on the local levels but also on the regional arenas. The bank management continues its endeavors to accomplish achievements and enhance success with prudence and perseverance in view of the confidence accorded to the bank by its customers, the board of directors, and its shareholders. This confirms the right track the bank followed for conversion into Islamic banking in April 2010 and the sagacity of this historic decision, which was applied with superb care and high professional standards based on shrewd future prospects.
Dr Al-Mudhaf commended the rating made by Fitch Rating Agency which upgraded Al-Motahid credit strength on the long term and short term to A+ and F1 respectively. Fitch upgraded also the bank rating for its capability to continue and the soundness of its positions owing to the strength of its financial position, rising profitability, the quality assets, and the strength of its liquidity position and its capital adequacy, as well as the strength of adequacy of its big shareholders and the support they render to the bank.
Dr Al-Mudhaf expected that the improvement in the bank performance will continue, whereby it is expected that the bank will realize further achievements during the year, notwithstanding the heated competition in the Islamic banking market. The bank management is well aware of these conditions and consider these challenges as a driving force to improve all banking services and the continued development of integrated services and products and financial solutions, to cope up with the accelerating changes in the banking business in general and Islamic banking in particular, and to observe the new rules and instructions issued by the Central Bank of Kuwait.
Undoubtedly, the well performance forecasts and maintenance of appropriate growth ratios in Al-Motahid operations activities falls within the implementation of an overall strategy and in the framework of intensive efforts exerted for protection of the position held by the bank, being one of the best Islamic banks and to benefit from being one of the most significant entity within an integrated banking group that attain pioneer international and regional expansion and profound banking history.
In concluding his statement, Dr Al-Mudhaf extended his thanks to the bank customers and shareholders for the confidence and support they conferred upon the bank which enabled the bank to realize these results. Dr Al-Mudhaf presented his thanks also to the bank management and the staff members for their diligent efforts, affiliation and loyalty, and expressed his prospects for further growth and success in the coming years.
© Arab Times 2014
