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Kuwait Times
38 minutes ago
- Kuwait Times
Al-Ahli Bank of Kuwait Group holds H1 2025 analyst conference call
Bank has successfully executed a number of strategic initiatives over the years KUWAIT: Al-Ahli Bank of Kuwait (ABK) recently hosted its H1 2025 analyst conference attended by Giel-Jan M Van Der Tol, Group CEO; Abdulla Al-Sumait, Deputy Group CEO; Shiamak Soonawalla, Group CFO; Abdulaziz Jawad, Chief Strategy Officer; and Osama Ezzeldin, Assistant General Manager of Strategy and Follow Up. In his opening statement, Van Der Tol said, 'What's clear to me is that ABK has a robust foundation that will be leveraged to unlock and realize the Group's regional aspirations. The Bank has successfully executed a number of strategic initiatives over the years which we are bearing fruit of now. ABK Group will continue to invest in the future and transform itself into a digital-at-core organization.' He shed light on ABK's solid performance, achieving a 9 percent year-on-year increase in net profit with net profit attributable to shareholders rising to KD 31.7 million. Meanwhile, earnings per share held steady at 11 fils and ABK's loan portfolio grew 5 percent year-on-year, supported by its robust credit governance structure. Asset quality also remained solid, with the NPL ratio well controlled at 1.35 percent. Furthermore, ABK's CET1 ratio stood at 11.94 percent and total capital adequacy ratio at 16.96 percent, well above the regulatory requirement, reflecting the strength of its capital base and ability to support future growth. Van Der Tol added, 'We have successfully executed the key initiatives under our ABK2X strategy, which focused on improving efficiencies, strengthening our core franchise and accelerating our digital transformation. As a result, we witnessed a significant improvement in our cost to income ratio, which improved to 42.2 percent, a clear reflection of the benefits realized from our transformation strategy.' Giel-Jan M Van Der Tol Abdulla Al-Sumait Shiamak Soonawalla Abdulaziz Jawad The Group CEO elaborated on ABK's continued advancement in digital transformation. He said, 'Over 15 new features were added to our mobile app enhancing digital applications, payments and account control. Furthermore, as part of our customer experience banking initiative, we upgraded our ATM network with a new interface.' Moving on to ratings, he clarified that Moody's reaffirmed ABK at A2 and Fitch at A, both with a stable outlook and continued confidence in its financial strength, prudent risk management and governance standards. Van Der Tol continued, 'Our regional diversification continues to be a key enabler of sustainable growth. Our international operations, including our UAE branches and ABK-Egypt, contributed a solid 40 percent of operating income and accounted for 37 percent of total assets, highlighting the strategic value of our regional footprint.' He also highlighted ABK employees' unwavering commitment and hard work, who remain a key pillar of its success. He affirmed that the Bank remains focused on fostering an inclusive, high performing culture and empowering local talent with Kuwaitis continuing to occupy 73 percent of leadership positions and female representation reaching 40 percent of human capital. In his final remarks, Van Der Tol claimed, 'As we enter the second half of the year, our focus is clear: drive core profitability, strengthen asset quality and accelerate digital transformation. We remain committed to disciplined execution and delivering sustainable shareholder value.' Strongly positioned Commenting on ABK's overall performance, Al-Sumait stated, 'The Bank will continue to strengthen its position and deliver on its strategic priorities.' He commended the Board of Directors for their steadfast leadership as well as the senior management for their dedication and resilience where their collective efforts have been instrumental in driving progress for ABK. Financial performance Moving on financial performance, Soonawalla highlighted that operating income for the period reached KD 108.8 million, while operating profit stood at KD 62.9 million, reflecting proactive cost management and continued revenue momentum across business lines. Asset quality remained robust with the Group's non-performing loan (NPL) ratio maintained at a healthy 1.35 percent while loan loss coverage ratio held firm at 447 percent, underscoring the stability of ABK's credit metrics. He added, 'We hold provisions amounting to KD 218 million, which exceed IFRS 9 requirements and are in accordance with Central Bank of Kuwait guidelines, reflecting our continued prudent provisioning policy.' The net interest margin (NIM) increased to 2.2 percent driven by improved asset yields and stable funding costs while return on average equity (ROAE) improved to 9.2 percent in H1 2025, showcasing stable earnings and long-term shareholder value. Liquidity and funding remained a key strength for ABK supported by a liquidity coverage ratio of 230 percent and a net stable funding ratio of 108 percent, both comfortably above regulatory thresholds. Customer deposits stood at KD 4.3 billion, representing 67 percent of our total liabilities, highlighting the continued client confidence and the resilience of ABK's funding profile. Soonawalla shared, 'The Group's operational performance advanced significantly in H1 2025 with an 18 percent uplift in operating profit, reflecting improved income generation and tighter cost control. This demonstrates our stronger efficiency and core business growth.' Commercial Banking continued to lead operating income during H1 2025, contributing 51 percent, followed by Retail Banking at 37 percent and Treasury and Investments at 12 percent. Asset allocation also remained strategically balanced, with 56 percent allocated to Commercial Banking, 13 percent to Retail Banking and 31 percent to Treasury and Investments. He continued, 'Our cost to income ratio improved to 42.2 percent in H1 2025, reflecting the success of our focused cost management efforts which delivered a 3 percent year-on-year reduction in operating expenses.' As of H1 2025, total assets expanded to KD 7.2 billion, delivering strong year-on-year growth of 8 percent. In addition, net loans and advances increased by 5 percent to KD 4.7 billion, demonstrating healthy lending activity and prudent balance sheet expansion. Soonawalla summarized, 'Overall, H1 2025 demonstrates the strength of our business model and impact of our focused execution. We delivered solid financial performance, strong risk controls, improved efficiency and robust asset quality. As we enter the second half of the year, we remain committed to sustainable growth and long-term value creation for our shareholders.' Strategic priorities On his part, Jawad affirmed that ABK has continued to execute against its strategic priorities, delivering steady growth across key customer segments, including Kuwaitis, privilege banking and youth. Targeted initiatives focused on product development, digital engagement and service excellence contributed to loan growth that beat market growth. 'We remain disciplined in our underwriting approach while maintaining a healthy risk-adjusted return profile,' he affirmed. In addition to its financial performance, ABK achieved meaningful recognition from leading international institutions. During the first half, the Bank was honored with the Best Digital Transformation Initiative award by MEED and the Elite Quality Recognition award from J.P. Morgan. He said, 'These recognitions reflect the progress we have made in advancing our digital capabilities, strengthening operational delivery and our ongoing efforts to enhance client experience across channels.' Egypt and the UAE Jawad shed light on the business' continued strong performance in Egypt where it obtained PCI-DSS certification, reinforcing digital security standards. ABK-Egypt was also recognized by International Business Magazine as the Fastest Growing Retail Bank in 2024. He continued, 'In addition, we strengthened our digital payments proposition through a strategic partnership with Visa and launched a suite of tailored wealth solutions to support our affluent client base. These developments are aligned with our commitment to innovation, segmentation and service excellence.' In parallel, ABK Capital, the investment arm of the Group, has established its subsidiary at the Dubai International Financial Centre (DIFC) after receiving approval from the Dubai Financial Services Authority (DFSA). This marks a significant strategic milestone in our efforts to expand ABK's regional and international presence. Jawad claimed, 'The new entity strengthens our investment platform, enabling us to access key financial markets and deliver enhanced value to our clients and stakeholders across a broader geographic landscape.' ESG Last but not least, Jawad emphasized that ESG remains a central pillar of ABK's long-term strategy, fully aligned with Kuwait Vision 2035. He stated, 'We are embedding ESG into our culture and operations through initiatives focused on climate resilience, responsible banking, financial inclusion and community impact.' He also highlighted the strong progress made on climate action by transitioning all ABK facilities to LED lighting, reducing Scope 2 emissions. On the governance front, climate considerations have been integrated into policies and processes. Additionally, ABK is growing its sustainable finance portfolio by funding projects with positive environmental outcomes. He concluded, 'We remain focused on execution, agility and delivering shareholder value. We are well-positioned to navigate the evolving operating environment and capitalize on emerging opportunities. Our strategic direction remains clear and we are committed to driving disciplined growth, strengthening our franchise and upholding our leadership in financial stewardship and sustainability.' Giel-Jan M Van Der Tol The Bank has successfully executed a number of strategic initiatives over the years which we are bearing fruit of now. Abdulla Al-Sumait The Bank will continue to strengthen its position and deliver on its strategic priorities. Shiamak Soonawalla Overall, H1 2025 demonstrates the strength of our business model and impact of our focused execution.
Kuwait News Agency
2 hours ago
- Kuwait News Agency
Yemeni coffee looks to regain global presence amid resurgence efforts
News report by Sami Numan ADEN, Aug 9 (KUNA) -- A journey deep into Yemen's ancient mountains and sun-kissed slopes leads you to the southwestern Arab Peninsula nation's renowned coffee plantations, churning out an earthy and aromatic coffee that at one point dominated the international market. Often referred to as the "Mother of all Coffees," Yemen's renowned coffee beans take you on a wonderous journey through the port of Mocha, an ancient Red Sea port that had been crucial to coffee trade from the 15th to 17th centuries, where the first beans for the modern-day chocolate version variation of caffe latte were grown. At a time where the impoverished nation is mired in conflict and unrest, it is practically impossible for the government to provide updated statistics on coffee production, the last of which showed a cultivation figure of 22,000 tons across 36,000 hectares of land. Employing techniques that are in line with conventional and historic methods, Yemeni farmers cultivate coffee on steep slopes and high-altitude mountains, resulting in a natural product that is free of chemical residues, which offers a lifeline to rural families that depend on coffee cultivation for a living. In a testament to its ingenuity and quality, the Yemeni government last March had submitted a bid to nominate the country's rich coffee culture for UNESCO's Intangible Cultural Heritage of Humanity list, an ode to the world's oldest coffee origins and an effort to garner global recognition while simultaneously aiming for a global resurgence. In spite of the persistence of such efforts, restoring Yemeni coffee to the upper echelons of the international market remains a difficult task, partly thanks to the need of vigorous marketing at a time where the production of a green stimulant drug known as Qat accounts for the lion's share of the country's agricultural resources. On the factors behind the regression of Yemeni coffee, the head of a national coffee club Hashem Numaan cited various reasons, chief among them the dominance of Qat production coupled with the lack of state support, which primarily entails providing farmers with the proper agricultural infrastructure, he said. He lamented a bygone era where Yemeni coffee production was the "pulse" of the national economy, accounting for some 80 percent of national exports, however, with a sense of optimism, renewed investment can bring back Yemeni coffee to its heyday, he said. Despite a civil war that has raged on for more than decade, he clings to a glimmer of hope that Yemeni coffee can return to international prominence again, starting with putting in place the proper infrastructure for a coffee production boom, which is possible thanks to rising global demand, he told KUNA. Going far beyond the notion of a warm beverage, Yemenis view their coffee as a cultural, civil and spiritual emblem, where the state's backing along with international support, can allow Yemen to once again become a powerhouse for coffee production. (end)
Kuwait News Agency
9 hours ago
- Kuwait News Agency
KPC: Kuwait oil price down 81 cents to USD 69.81 pb
KUWAIT, Aug 9 (KUNA) -- The price of Kuwaiti oil dropped 81 cents to USD 69.81 per barrel (pb) on Friday, compared to USD 70.62 pb on Thursday, reported Kuwait Petroleum Corporation (KPC) on Saturday. In global markets, Brent futures went up 16 cents to USD 66.59 pb, while West Texas Intermediate stood at USD 63.88 pb. (end)
