Kuwait International Bank (KIB) has seen its first-half (H1) net profit soar 103% to KD12 million ($38.24 million).

KIB’s total assets grew to reach almost KD3.50 billion. This growth was the result of an increase in the size of financing portfolio which reached KD2.52 billion as on June 30, 2024, said bank Chairman Sheikh Mohammed Jarrah Al-Sabah.

He noted that KIB’s investment and high-quality Sukuk portfolio stood at KD405 million.

Sheikh Mohammed highlighted that depositors’ accounts witnessed a growth by 12% to reach almost KD2.12 billion at the end of June 30, 2024.

Shareholder equity

In addition, the shareholder equity, stood at almost KD336 million (i.e. 7% growth) due to KIB successfully maintaining adequate levels of Basel III total capital adequacy ratio, which was 19.5% at the end of H1 2024.

Sheikh Mohammed said: “The financial results reflect the strength of the bank’s finances, its flexible business model and its ability to achieve sustainable profits. This success is attributed to KIB’s effective strategy, its digital infrastructure investments and its efforts to attract the best national talents.”

He added: “The financial results confirm that the bank enjoys a strong and stable capital base, enabling us to pursue further development, enhance our digital capabilities, evolve our innovation-driven operations and expand our financing and investment activities on different levels.”

Sustainable profit growth

KIB Vice Chairman and CEO Raed Jawad Bukhamseen pointed out that KIB has maintained sustainable profit growth and continued to achieve positive financial results thanks to its long-term strategy to keep pace with the banking sector’s rapid and continuous advancement, with a core focus on innovation, transformation and agile development. “Our continuous efforts aim to achieve our mission of providing an exceptional banking experience for our customers, ensuring the application of best responsible banking practices and risk management, while committing to providing added value to our shareholders,” he said.

Bukhamseen presented the key financial results for the first half of the year 2024, where financing income increased to reach KD89 million, a growth rate of 9% on an annual basis, and net financing income increased to reach an KD31 million, a growth rate of 33% on an annual basis, and an increase in fees and commission income to reach KD7.8 million, a growth rate of 28% on an annual basis, as this contributed to an increase in operating income to reach almost KD42 million compared to KD35 million, a growth rate of 19%.

Bukhamseen highlighted KIB’s notable achievements during the first half of 2024, pointing out that the bank successfully issued a $300 million Additional Tier 1 (AT1) Sukuk at an annual profit rate of 6.625%. The issuance attracted high investor demand, resulting in an oversubscription of over twice the original size of the issued Sukuk. The final pricing represented the tightest spread ever achieved on an AT1 Sukuk globally at the time of issuance, at 195 basis points above US Treasuries. In addition, KIB has fully redeemed the Tier 1 Sukuk issued in 2019 by way of exercising the sukuk Call Option.

Bukhamseen pointed out that the subsidiaries of the KIB continue to achieve tangible achievements in diversifying and developing products and services, targeting all companies in their various sectors to provide innovative and advanced services.

Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).