Latest news with #ABK-Egypt
Kuwait Times
2 days ago
- Business
- 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 Times
19-06-2025
- Business
- Kuwait Times
ABK Kuwait-Egypt reports strong results for first quarter of 2025
Over the course of our operational journey, the Bank succeeded in achieving robust growth rates across all financial indicators and managed to demonstrate its strong presence. KUWAIT: Al Ahli Bank of Kuwait – Egypt (ABK-Egypt), reported strong Q1 2025 financial results with Net Profit standing at EGP 1.3 billion, reflecting an increase of 42.3 percent for March 31, 2025 compared to same period last year after excluding foreign exchange revaluation impact. Net Interest Income grew 26.2 percent to reach EGP 1.8 billion compared to EGP 1.4 billion in the same period of the last year. Despite the challenging economic landscape, the Bank managed to further expand its total footings with Total Assets recording a 10.2 percent increase in the end of the Q1 2025 to reach EGP 156 billion compared to EGP 141.6 billion in December 2024. Customer Deposits grew by 12 percent to reach EGP 134.1 billion compared to EGP 119.9 billion in December 2024. Furthermore, the Bank's Total Gross Loans Portfolio grew by 15.8 percent to reach EGP 80.2 billion compared to EGP 69.3 billion in December 2024. Non-Performing Loans (NPL) ratio recorded 2.04 percent at the end of March 2025 compared to 1.74 percent at the end of December 2024. Commenting on the results, Ali Marafi, Chairman of ABK-Egypt stated, 'Over the course of our operational journey that is close to ten years in the Egyptian market, the Bank succeeded in achieving robust growth rates across all financial indicators and managed to demonstrate its strong presence, whilst carefully adhering to all risk management practices to best navigate challenging market conditions and ensure achieving its sustainable success and expansion goals.' Marafi also confirmed that ABK-Egypt has always been keen on prioritizing corporate social responsibility as an integral part of its well-articulated strategy. Since it started operating in Egypt, the Bank has proactively played a leading role in supporting the communities in which it operates through various social initiatives that support the development of the education and healthcare sectors in addition to providing financial relief to the underprivileged. The Bank has also made various contributions to help integrate individuals with disabilities and improve the lives of children, women and families in need. Marafi noted that ABK-Egypt will continue to support development plans in Egypt in cooperation with the relevant authorities. He added that the Bank remains committed to providing the necessary financing to assist individual and corporate clients in carrying out their operations and expanding their activities. This thereby strengthens trust in the Bank as a preferred banking partner in the Egyptian banking sector. Marafi added that ABK-Egypt enjoys the trust of numerous international organizations and institutions, as reflected by the many awards it has received, which affirm its ability to meet the needs of all customers and keep pace with developments in the banking industry. This, in turn, helps the Bank strengthen its competitive position within the banking sector. He expressed his gratitude to the Central Bank of Egypt and the Egyptian government for their continued support of the Bank and the banking sector as a whole, affirming the Bank's full commitment to contributing to the success of future plans aimed at enhancing economic activity and achieving Egypt Vision 2030 across various sectors. Stability and flexibility In the same context, Khaled El Salawy, Chief Executive Officer & Managing Director of ABK-Egypt, affirmed that these results reflect ABK-Egypt's underlying strength and its emphasis on achieving steady, profitable growth. It also underscores the resilience of the Bank's financial position, the agility of its operational frameworks, and the strength of its risk management practices. Adding that the Bank will continue to focus on its digital transformation agenda as one of the chief drivers of sustainable growth. He also expressed his gratitude for the combined efforts of the entire team and their commitment to delivering very strong results through diversifying revenue streams, which led to achieving EGP 1.7 billion Profit Before Tax excluding foreign exchange revaluation impact. El Salawy further elaborated, 'As we continue working on our plans towards fortifying ABK-Egypt's position in the Egyptian market and playing an active role in supporting the Egyptian economy, our vision will remain focused on providing experiences that simplify and enrich people's lives through our range of innovative and secure banking solutions that serve all customer segments. Moreover, we maintain a positive outlook regarding market conditions and will continue to support all endeavors led by the Egyptian government and the Central Bank of Egypt that pave the way for a brighter future.' El Salawy additionally stated that, in line with the Bank's ambitious growth strategy and plans to expand its geographical presence to best cater for its growing customer base in Egypt, ABK-Egypt recently opened its new branch located in Palm Hills, 6th of October. This recent opening brings the Bank's network to 46 branches covering 18 governorates across the country. Furthermore, the Bank will continue to prioritize the enhancement of its suite of offerings and upgrading its service quality to ensure a distinguished banking experience across all channels and to maximize value for its customers. International Certification It is worth mentioning that ABK-Egypt recently obtained the Payment Card Industry Data Security Standard (PCI DSS) certification V4.0.1, a globally recognized benchmark that guarantees the highest standards in payment cards data protection. The Bank was certified after successfully passing a full audit process and a comprehensive review on Bank's systems and technical procedures related to electronic payment cards data processing. Obtaining this certification reflects the Bank's full commitment to the regulations and directives of the Central Bank of Egypt and will further strengthen its ongoing efforts to implement global best practices in information security and the protection of customer data from threats or breaches. The PCI DSS certification marks an important milestone in the Bank's journey to solidify its credibility in the Egyptian banking market and support its strategy aimed at developing digital services while ensuring the highest levels of security in banking transactions - offering customers a safe and reliable experience. This achievement is the result of effective collaboration across various divisions within the bank, as well as the presence of highly qualified personnel with the technical expertise and skills required to implement advanced security solutions. Previously, ABK-Egypt had also obtained the ISO/IEC 27001:2013 certification in Information Security Management Systems, making it one of the few Egyptian banks to earn this international accreditation. This stands as further proof of its excellence in applying security governance standards and ensuring data confidentiality and professional handling. Our vision will remain focused on providing experiences that simplify and enrich people's lives through our range of innovative and secure banking solutions that serve all customer segments.
Zawya
21-03-2025
- Business
- Zawya
ABK-Egypt partners with Visa to expand digital payment solutions
Cairo - Al Ahli Bank of Kuwait-Egypt (ABK-Egypt) penned a long-term strategic partnership agreement with Visa to provide its latest digital payment technologies to meet customer needs. The partnership will enhance digital payment solutions with advanced and competitive features and benefits, according to a press release. It includes the launch of a range of new products and services that meet the diverse needs of various customer segments, boosting Egypt's strategy to achieve full digital transformation and promote electronic payment systems. Malak Al Baba, Vice President and Country Manager of Visa in Egypt, said: 'This agreement with Al Ahli Bank of Kuwait - Egypt represents a significant step towards achieving this goal, and we look forward to contributing to advancing digital transformation in the country.' 'Through this strategic cooperation, we are proud to be part of Al Ahli Bank of Kuwait - Egypt's vision to develop innovative banking solutions, enrich customers' lives, and provide a seamless and secure banking experience,' Al Baba added. The cooperation enables ABK-Egypt to scale its customer base by attracting new segments and encouraging more customers to adopt banking solutions, particularly focusing on youth, contributing to the growth of the Egyptian economy. Source: Mubasher
Zawya
19-03-2025
- Business
- Zawya
Al Ahli Bank of Kuwait-Egypt signs a long-term partnership with Visa to expand digital payment solutions
Al Ahli Bank of Kuwait - Egypt - ABK-Egypt announced the signing of a long-term strategic partnership agreement with Visa, a global leader in payment technology and digital solutions, with the objective of at offering the latest digital payment technologies to meet customer needs, introduce innovative products and services for different segments, and. and enhance its digital payment solutions with advanced and competitive features and benefits. This partnership involves the launch of a range of new products and services that meet the diverse needs of various customer segments in alignment with Egypt's strategy to achieve full digital transformation and promote electronic payment systems. Through this strategic cooperation, the Bank seeks to take further steps towards its expansion plan and introduce innovative solutions that provide customers with a seamless and secure banking experience. ABK-Egypt is committed to Egypt's financial inclusion strategy and vision of transitioning to a cashless society. And thereby, the Bank adopts a digital transformation strategy that focus on streamlining banking operations to enhance customer experience and reinforce the Bank's position in the highly competitive and constantly evolving Egyptian market. Commenting on this partnership, Mr. Khaled Barakat, Deputy CEO ABK-Egypt leading Consumer Banking stated: "We take pride in this cooperation and look forward to capturing a substantial market share through increasing transaction volumes and attracting new customer segments.' He further emphasized ABK-Egypt's relentless efforts to expand its retail portfolio through enhancing service quality and launching new products and services with competitive benefits, aligning with the latest technologies and the growing needs of various customer segments. In the same context, Malak Al-Baba, Vice President and Country Manager of Visa in Egypt, said: 'We at Visa are committed to providing the latest digital payment innovations to enhance consumer's experience in Egypt. This agreement with Al Ahli Bank of Kuwait - Egypt represents a significant step towards achieving this goal, and we look forward to contributing to advancing digital transformation in the country.' We believe that supporting our partners in achieving their ambitions is part of our mission. Through this strategic cooperation, we are proud to be part of Al Ahli Bank of Kuwait - Egypt's vision to develop innovative banking solutions, enrich customers' lives, and provide a seamless and secure banking experience.' It is worth mentioning that the signing of this agreement with Visa marks a significant milestone in strengthening the Bank's position in the digital payments sector. This partnership allows ABK-Egypt to expand its customer base by attracting new segments and encouraging more customers to adopt banking solutions, particularly focusing on youth, who increasingly depend on technology in their daily lives, substantially contributing to the growth of the Egyptian economy.
