Boubyan's net profits increase to KD 96.8mln in 2024

Zawya

28-01-2025

Recommends 10 Fils in Cash Dividends and 5% in Bonus Shares
Abdulaziz Al-Shaya:
Performance and Metrics Showcase the Bank's Robustness and Our Potential to Maintain Our Banking Leadership
We Are Committed to Reinforcing Solutions and Investments That Reflect Our Ability to Confirm Our Status in the Kuwaiti Banking Sector
Adel Al-Majed:
Another Year of Milestones Coincides with Our 20th Anniversary
Our Balanced Growth Strategy Based on Enhanced Banking Activities Has Been a Success, and We Keep Pace with International Developments in the Banking Industry
Scaling Up Our Business in Line with Our Strategy to Ensure Continued Success
Boubyan Bank has announced KD 96.8 million in net profits for FY 2024, at a Growth Rate of 20%, compared with 2023, while the earnings per share amount to 21.6 Fils, and the Board of Directors recommended to distribute 10 Fils in cash dividends and 5% in bonus shares.
Key financial indicators of 2024 show that the bank's assets grew to KD 9.4 billion at a growth rate of 12% compared with last year, while the bank's financing portfolio grew by 10% to KD 6.9 billion, and operating income grew by 13% to KD 246 million, meanwhile, the bank's market share of local financing increased to 12%.
Boubyan Bank's Chairman, Mr. Abdulaziz Abdullah Dakheel Al-Shaya, commented: 'We are proud of the bank's financial results until the end of FY 2024, which recorded significant growth across most of our financial indicators. These results were the fruit of strategic diversification of the bank's products, services, and investments, which reflect our status in the Kuwaiti Banking Sector. This led to the enhancement of our operational performance, thus leading to a good growth in profitability, despite the conditions and contingent developments in the operational environment.'
'After the completion of our past 5-year strategy 'Boubyan 2023', the bank started a new chapter with its new 5-year strategy, titled 'Boubyan 2028', which focuses on pursuing sustainable profitability and continuing the adoption of digital transformation standards, innovation, and resilience as a key driver to improve operational efficiency. This aims to instill the values of the strategy across the Group and to ensure the growth of all concerned parties, including employees, customers, shareholders, and the community as a whole.', he added.
Mr. Al-Shaya thanked the shareholders, investors, and all Boubyan's customers for their confidence, and reiterated the Board's full and ongoing support to the efforts of the bank's highly-professional executive management, which contributed to the achievement of the best results, while thanking all the bank's employees for their continued dedication to work.
** 20 Years of Growth and Sustained Profitability
On his part, Boubyan Bank's Vice-Chairman & Group Chief Executive Officer, Mr. Adel Abdul Wahab Al-Majed, stated: 'Boubyan Bank's financial results in 2024 are the most outstanding ones in the bank's history, being the highest historically. Moreover, this coincides with our celebration of the bank's 20th Anniversary. This solid financial performance is attributed to the unwavering commitment to the development of the most diversified and resilient business model to reinforce our leadership, in addition to our investment in cutting-edge FinTech and the launch of innovative solutions, which reiterates our complete readiness for any future challenges on the long-run.'
'Since its inception, Boubyan Bank has succeeded in reinforcing its franchise and brand as one of the leading banks in the Islamic banking industry, owing to its adoption of balanced growth strategies based on enhanced banking activities. The bank has further managed to stamp its vision to become the leading Islamic bank with high creditworthiness, credibility, and reliability. This was clearly reflected through the bank's financial statements, sustained profitability, and prudent management of risks, business and operational activities, leading to the success of Boubyan's Strategy aiming ' towards perfection ', and leading to increased profitability, market share, and international presence, coupled with outstanding performance, and products and services that attract customers, particularly our digital offerings.', he added.
Al-Majed went on to add: 'Boubyan follows a well-studied strategic approach to ensure continued success and excellence, while aiming to expand the scope of its services and branches in a balanced way in a manner that ensures sustained growth and meeting the increasing needs of customers, all while maintaining the quality of its services and improving core banking activities. The bank is keen on exploring promising investment opportunities, diversifying funding sources, and boosting the Group's funding potentials, which positively reflects on increasing the confidence of customers and investors, in addition to maintaining the level of customers' trust at its best.'
** Shaping the Digital Future
Boubyan Bank's digital transformation strategy gained a significant momentum, being a real and living example for succeeding in being highly competitive regionally and internationally in digital banking services, and in encouraging innovation and sustainable digital growth towards accelerating transformation and making financial transactions more convenient, thus enabling Boubyan to be in the forefront of the digital banking scene and to be the favorite bank for the youths' segment.
It can be safely said that owing to the proactive vision and well-studied plans, which focused on tech-innovation and investment in technology and AI, the bank managed to lead fundamental technological and digital developments in advanced digital transformation across its banking business to upgrade the digital infrastructure of its digital services and reinforce the infrastructure of its digital solutions' portfolio to be in the forefront of institutions that support investing in digital services atop the Kuwaiti banking sector's institutions.
** Significant Growth in Corporate Banking
The Corporate Banking Group witnessed a significant growth in 2024, as it offered a wide set of Sharia-compliant financing products that cater for the needs of corporate customers.
Over the past year, the Corporate Banking Group succeeded in making significant milestones due to the ongoing diversification and improvement of products and services, coupled with its continued offering of innovative and more flexible banking services to keep pace with the accelerated development in financing transactions to meet the banking needs of corporate customers.
** Prestigious Awards across Various Business Areas
During 2024, Boubyan Bank demonstrated its excellence and leadership as it received many domestic, regional, and international awards, in addition to prestigious rankings and ratings that crowned the bank's efforts across various business areas, thus continuing the journey of successes, awards, and international recognitions from prestigious international institutions, which reinforce the bank's leadership, internationally, locally, and regionally.
Speaking of digital leadership, the bank's successes crowned it with 6 prestigious awards from Global Finance, the internationally renowned publication. The icing on the cake was the award for the 'World's Best Islamic Digital Bank' for a full decade atop major Islamic financial institutions, coupled with receiving a similar award in the same domain atop the Middle East and Kuwait, in addition to the award for the 'Best Corporate/Institutional Digital Bank in Kuwait'.
Additionally, the bank's Business Banking Department serving SMEs, received two awards for the 'Best SME Banking/SME Platform in Kuwait' and the 'World's Best SME Payments Innovation'.
Moreover, the bank received two awards, namely the 'Most Innovative Bank' and the 'Best Digital Banking Initiative' by MEED, the internationally renowned publication. This came as a part of its MENA Banking Excellence Awards 2024.
** Sustainable Community Initiatives and Empowering Entrepreneurs
Over the past 20 years, Boubyan Bank's CSR initiatives have been unprecedentedly successful. The bank retained the special award for the 'World's Best Islamic Bank for CSR' for the second year in a row from Global Finance, the internationally renowned publication. This confirms that Boubyan's CSR strategy is on the right track towards achieving its goals, and that it aligns well with various segments of the society through its activities and day-to-day work, coupled with the bank's commitment to ESG standards.
The bank's community initiatives and efforts over the past year focused on many aspects such as the youths, sports, and wellness, in addition to Boubyan Bank's program for the Holy Month of Ramadan and how it embodies the meanings of social cohesion.
Entrepreneurs and owners of SMEs represent a very important segment of Boubyan Bank's customers, being the first bank of choice for the youths. Boubyan has a unique set of digital banking solutions that support and empower entrepreneurs to achieve their future financial goals, while opening up new growth opportunities and horizons to develop their entrepreneurship, enhance their operational efficiency, and expand the scope of their services to meet the requirements of the job market in Kuwait and the region, in addition to considering them major partners in all innovative solutions and products offered by Boubyan.
** Strategic Partnerships and Marketing Campaigns
Boubyan continued reinforcing its strategic partnerships which largely contributed to bringing exceptional experiences, promotions, exclusive benefits and value-adding solutions, and unique services to the lifestyle of our customers, thus enhancing their satisfaction levels. Such partnerships included the one with Acico Group and Enabill, the leader in the business of restaurants' digitalization, and continuing our strategic partnership with Holistic, the leading advisory company, which offers its services to entrepreneurs and business owners, in addition to our partnership with Snowdrop, a leader in enriching the data of financial transfers and payments.
To confirm that it is the closest to customers, Boubyan launched many marketing campaigns where customers were rewarded with exceptional instant prizes beyond their expectations. Additionally, the bank gave customers the best exclusive benefits as in the credit cards' summer campaign, "Every Tap Gets You Closer to Your Dream" Campaign, the Honeymoon campaign with Dazzah card for intending spouses among the bank's customers, and PRIME campaign for the youths' account.
** Enriching Human Resources
Boubyan Bank innovated a unique model to promote the value of developing leadership skills and forging leaders with exceptionally unique competencies that perfectly aligns with the strategy of developing leaders and promoting the creativity and innovation culture among employees, which comes in handy especially with the young expertise and competent cadres available at Boubyan across various levels. The bank further dedicates all necessary resources to the learning, growth, and development of its human cadres.
On another note, the score of the Organizational Health Index survey 'OHI' taken by all Group employees improved to 86%, while the total staff participation across the bank and its subsidiaries increased to 89%, placing the bank among the top 3 institutions regionally, and at the top decile of all prestigious institutions that took part in this survey globally.
Highlights
1st Highlight
Boubyan managed to maintain its status as a banking institution that is keen on attracting the best national cadres and striving to improve its business environment, evident by receiving the award for 'Excellence in Manpower Nationalization', awarded to the bank for the sixth time by the GCC Council of Ministers of Labor & Social Affairs, for its success and excellence in increasing the percentage of national manpower across the Kuwaiti banking sector in 2024, where the bank achieved 82% at the level of empowering and recruiting national manpower.
2nd Highlight
During 2024, Nomo Bank, the digital arm of the Bank of London and the Middle East 'BLME', a subsidiary of Boubyan Bank Group, continued its expansion journey, while focusing on meeting the international banking and investment needs of customers, with a commitment to offer unique promotions and exclusive banking experience to them, in addition to offering them unique international investment opportunities. All such offerings are Sharia-compliant and they enable customers to grow and manage their savings and wealth internationally in a convenient manner with a bigger value across all business aspects.
3rd Highlight
Boubyan Bank continues focusing on customer service and on building sustainable trust, which led to its continued recognition with the 'Best Islamic Bank in Customer Service' award for the 14th year in a row by Service Hero, the consumer-driven customer satisfaction index. The bank reinforced this leadership atop all Islamic and conventional local banks by achieving a Customer Satisfaction Index (CSI) score of 96%.
Boubyan Bank's Key Financial Indicators
In KD Million
Growth
In 2023
In 2024
Indicator
20%
80.4
96.8
Net profits
13%
218
246
Operating income
10%
6,321
6,924
Financing portfolio
12%
8,405
9,377
Assets
15%
6,479
7,424
Customers' deposits