KIB Group achieved profit of $75mln for the year 2024

Zawya

11-02-2025

KUWAIT CITY The Chairman of Kuwait International Bank (KIB), Sheikh Mohammed Jarrah Al-Sabah, announced the Bank's financial results for the year ended on 31 December 2024, highlighting that KIB achieved a net profit attributable to shareholders of KD 23.1 million, marking a 21% increase over the last year, with earnings per share (EPS) of 11.04 fils. Meanwhile, total operating income increased by 26% over 2023, reaching KD 91.4 million in 2024.
In this regard, Al-Jarrah highlighted that the financial results achieved by KIB reflect the Bank's effective strategy that is focused on continuous innovation and excellence in banking services, as well as its ability to adapt to market changes and competition. This success is further supported by its robust financial position and solid, stable capital base.
Al-Jarrah said: 'At KIB, we believe success is not solely measured by numbers but by our ability to anticipate the future and sustain high performance. That's why we invest significantly in technology, digital infrastructure and human capital development, ensuring we meet our customers' needs at the highest standards in a rapidly changing market environment.'
As for the financial statements for 2024, Al-Jarrah noted that the total assets witnessed a 9% growth, amounting to KD 3.92 billion, in comparison to KD 3.62 billion at the end of 2023. This growth came primarily as a result of an increase in the financing portfolio by 14%, reaching KD 2.85 billion at the end of 2024, compared to KD 2.49 billion at the end of 2023. Additionally, the financial investments portfolio which primarily concentrated on high-quality Sukuk recorded a significant growth of 42%, amounting to KD 150.7 million, bringing the total to KD 513.4 million at the end of 2024, compared to around KD 362.7 million in 2023.
Regarding dividends' distribution among the shareholders, Al-Jarrah stated that KIB's Board of Directors proposed cash dividends of 5 fils per share and 5% as bonus shares from the issued and paid-up capital, subject to the approvals of the Bank's shareholders' general assembly and competent regulatory authorities.
Al-Jarrah added: 'KIB's growth in 2024 was driven by its focus on strengthening its financing portfolio and diversifying investments, which contributes to long-term financial stability. The Bank remains committed to supporting the national economy by backing initiatives and projects that promote innovation and entrepreneurship. Additionally, the Bank is dedicated to creating sustainable value for the community, customers, and shareholders, while upholding the highest standards of governance and transparency.'
Al-Jarrah concluded his remarks by emphasizing that the Bank's positive results would not have been possible without the exceptional efforts of its dedicated team and the unwavering support of its valued shareholders. He reaffirmed KIB's commitment to investing specially in technology, digital infrastructure, developing human capital and implementing future plans to meet market demands, all while upholding its social responsibility to deliver sustainable value for all stakeholders.
Innovation and Sustainable Growth
On his part, Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer of KIB, stated: 'This year's results represent a pivotal milestone in our journey, reflecting our strategic focus on innovation and sustainable growth. This approach has allowed us to strengthen our competitiveness significantly by optimizing our financing portfolio and adopting innovative digital solutions that keep pace with market trends.'
Bukhamseen added: 'The Bank has effectively achieved a balance between growing its investment portfolio and expanding its banking services, leading to a significant increase in operating revenues. These results highlight the Group's exceptional performance and growth in key financial indicators, showcasing the success of our strategy and our commitment to the highest standards in the banking industry.'
Commenting on KIB's financial performance, Bukhamseen noted the increase in the net financing income by 29% in 2024, to reach KD 68 million, in comparison with the approximate KD 52.9 million in 2023. Fee and commission income increased to KD 17.4 million, up from KD 12.2 million, reflecting a growth rate of 43%. This contributed to a rise in total operating income, which reached KD 91.4 million compared to KD 72.6 million in 2023, marking a growth of 26%.
Discussing the Bank's financial position, Bukhamseen highlighted that depositors' accounts in KIB grew by 30%, totaling of KD 2.75 billion by the end of 2024, with the comparison with 2.12 billion in 2023. Meanwhile, shareholders' equity attributable to the shareholders grew by 4% to reach KD 348 million. He further noted that KIB maintained high levels of total capital adequacy ratio, in accordance with Basel III instructions, reaching 18.38% as at 31 December 2024.
Issuance of USD300 million in Sukuk
Bukhamseen underscored KIB's notable achievements during the first half of 2024, including the successful issuance of a USD300 million Additional Tier 1 Sukuk (AT1) with an annual profit rate of 6.625%. The issuance saw investor demand exceeding twice the original size of the issued Sukuk, with final pricing achieving the tightest spread ever achieved on an AT1 Sukuk globally at the time of issuance, at 195 basis points above US Treasury. Furthermore, the AT1 Sukuk issued in 2019 were fully redeemed by way of exercising of the Call Option in 2024.
Establishing KIB Invest
In 2024, the Bank officially launched its investment arm, Al Dawli Invest Investment Company (KIB Invest), to engage in Islamic investment activities and provide a diversified suite of investment solutions tailored to meet clients' evolving needs, Bukhamseen noted. This was achieved through a specialized team with extensive expertise in local, regional, and global markets.
Bukhamseen also highlighted that KIB Invest served as Joint Lead Manager (JLM) in the issuance of a seven-year sovereign Sukuk for the Kingdom of Bahrain. The Sukuk raised USD1.25 billion for 7 years and attracted demand exceeding 2.8 times the targeted size. He expressed pride in KIB Invest's position as a trusted partner for major institutions and investors in GCC markets.
Expanding the Branch Network
As part of KIB's efforts to expand its branch network and be closer to its customers across various areas of Kuwait, the Bank opened a new branch in Sabah Al-Salem. The branch features a modern, innovative design and advanced technological capabilities aligned with KIB's digital infrastructure investment strategy. Additionally, the Bank inaugurated its 18th branch in Mubarak Al-Kabeer, designed with a contemporary approach and equipped with the latest banking technologies. These steps demonstrate the Bank's commitment to enhancing its digital infrastructure and broadening the scope of its services, he said.
Enhancing Services and Innovating New Solutions
KIB achieved significant progress in developing banking services and digital products in 2024, while also introducing innovative financial solutions designed to continually elevate the customer experience. These efforts aim to address customers' evolving needs and empower them to manage their finances and conduct transactions securely at all times. This is based on its comprehensive strategy towards digital transformation, innovation and sustainable digital growth, keeping pace with the latest developments in the banking sector, and aligning with its main slogan, 'Bank for Life'.
Social Responsibility
In 2024, the Bank launched several key initiatives, solidifying its position as a leader in community development across various sectors, as part of its comprehensive social responsibility program. Leading these efforts was its continued support, for the fourth consecutive year, of the 'Let's Be Aware' (Diraya) banking awareness campaign, initiated by the Central Bank of Kuwait (CBK) in collaboration with the Kuwait Banking Association (KBA). The campaign aligns with the Bank's mission to promote financial and banking literacy across all segments of society. To maximize its impact, KIB strategically targeted high-traffic locations, such as major shopping centers, while also leveraging media platforms and its digital channels to disseminate awareness messages.
Prestigious Awards and Recognitions
In 2024, KIB achieved numerous prestigious accolades, reflecting its leadership in the banking sector. These included the 'Best Real Estate Solutions Provider – MENA 2024' award from Capital Finance International (CFI.co) magazine and the 'Best Retail Banking Product 2024' from World Finance magazine, recognizing the successful revamp of the KIB Mobile application. Additionally, KIB was honored with the 'Excellence in FinTech Innovation & Digital Leadership in Kuwait 2024' by the World Union of Arab Bankers (WUAB).
Furthermore, the Arab Academy for Management, Banking and Financial Sciences (AAMBFS) announced the appointment of Al-Jarrah as Chairman of its Board of Trustees. Recognized as one of the leading educational institutions in the Arab world, the academy plays a vital role in preparing top professionals in finance, banking, and management.
In their closing remarks, Al-Jarrah and Bukhamseen praised the exemplary regulatory and supervisory role of the Central Bank of Kuwait and its steadfast support. They also expressed their gratitude to the Capital Markets Authority for its efforts in creating an attractive and competitive investment environment in Kuwait. In addition, they acknowledged the dedicated efforts of all KIB teams and their significant contributions to achieving these results. They extended their heartfelt appreciation to the Board of Directors and the Executive Management for their continued support and wise guidance in further strengthening KIB's financial position.
Syndigate.info).