Latest news with #Al-AhliBankofKuwait
Kuwait Times
3 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
11-07-2025
- Business
- Kuwait Times
Today in Kuwait's history - Islam Al-Sharaa
KUWAIT: 1985 -- Eleven people were killed and 89 others injured in terrorist explosions at two popular sea-front cafes in Sharq and Samliya areas, State of Kuwait. 1991 -- Fifty-four people, mostly Americans, were injured in a big fire at a weapons depot of the US forces in Doha area. 1994 -- The Public Authority for Youth and Sport allowed every local sporting club to bring two foreign players to their football teams, allocating 20,000 Kuwaiti Dinars (KD) for every club to hire the players. 2000 -- Kuwait Amir Sheikh Jaber Al-Ahmad Al-Sabah issued a law rejecting claims to state property. 2000 -- Kuwait Amir Sheikh Jaber Al-Ahmad Al-Sabah signed a law allowing establishment of private universities or branches of foreign universities. Majority of shares of these institutions, which contribute to higher and applied education, should be owned by Kuwaiti nationals. 2002 -- Kuwait's Khaled Al-Mudhaf won the Trap event at the World shooting Grand Prix in Finland, thus qualified for the 2004 Olympics in Athens, Greece. 2005 -- Murad Yusuf Behbehani, one of the first Kuwaiti businessmen to import air conditioning units, watches and cars in 1940s, passed away at age of 86. Behbehani was the honorary consul of the Switzerland for more than 50 years, and chaired Al-Ahli Bank of Kuwait between 1986-2003. 2018 -- Kuwait Environment Public Authority's (EPA) Environmental Monitoring Information System of Kuwait (eMISK) won the 2018 geographic information systems award, in a conference held in the US. 2019 -- Chinese Tsinghua University selected Kuwait University political sciences professor, Ghanem Al-Najjar, to be member of the higher academic committee of its international studies institute. 2024 -- Jaber Al-Ahmad Al-Sabah Hospital was internationally recognized by Surgical Review Corporation as a distinguished breast surgery center. —KUNA
Kuwait Times
14-05-2025
- Business
- Kuwait Times
Al-Ahli Bank of Kuwait Group holds Q1 2025 analyst conference call
ABK's diversified footprint continues to drive its growth momentum KUWAIT: Al-Ahli Bank of Kuwait (ABK) recently hosted its Q1 2025 analyst conference attended by Abdulla Al-Sumait, Acting Group Chief Executive Officer; Shiamak Soonawalla, Group Chief Finance Officer; Abdulaziz Jawad, Chief Strategy Officer; and Osama Ezzeldin, Assistant General Manager of Strategy and Follow Up. Al-Sumait began with discussing the financial highlights for Q1 2025. 'ABK achieved a healthy net profit growth of 8 percent to KD 15.7 million. Earnings per share remained stable at 5 fils, and our capital adequacy ratio stood robustly at 16.78 percent.' 'On the lending side, ABK's loan portfolio expanded by 10 percent year-on-year, supported by our disciplined credit underwriting standards. Asset quality remains strong, with our NPL ratio well controlled at 1.38 percent, reflecting our continued focus on maintaining strong asset quality,' Al-Sumait said. He added, 'Our diversified footprint continues to drive our growth momentum. 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 strength of our regional diversification strategy.' Al-Sumait shared that ABK launched key strategic initiatives during the quarter to reinforce its competitive advantage and enhance customer experience. Major achievements in Q1 2025 included the launch of its new mobile banking app in Kuwait, featuring enhanced features and a new design, the introduction of a free international call service for customer support, and an enhanced customer service model with virtual service available in branches. He concluded, 'As we look ahead, ABK remains focused on delivering sustainable, long-term value. We will continue to pursue strategic expansion opportunities, strengthen our regional presence, and introduce innovative financial solutions tailored to meet the evolving needs of our customers.' ABK's Chief Strategy Officer Abdulaziz Jawad ABK Group CFO Shiamak Soonawalla Financial indicators On his part, Soonawalla discussed ABK's financial highlights for Q1 2025. He said, 'We achieved a healthy net profit growth of 8 percent year-on-year, with KD 15.7 million net profit attributable to shareholders. Earnings per share remained stable at 5 fils, and our operating income for the period reached KD 50.4 million, while operating profit stood at KD 29.3 million. This was supported by proactive cost management and continued revenue momentum across business lines.' ABK's asset quality remains robust, with the Group's non-performing loan (NPL) ratio maintained at a healthy 1.38 percent. The Group's loan loss coverage ratio held firm at 433 percent, confirming strong credit quality. Furthermore, provisions exceeded the IFRS 9 requirements, in accordance with Central Bank of Kuwait guidelines, as ABK continues to apply a prudent provisioning policy. Soonawalla added, 'We managed to maintain our net interest margin at 2.1 percent levels, although operating income marginally declined due to funding cost pressures and lower fees and commission income. Return on Average Equity (ROAE) delivered a healthy 8.1 percent, underlining ABK's strength in sustaining returns and driving long-term shareholder value. Liquidity continues to be a key strength for us, as evidenced by a liquidity coverage ratio of 255 percent and a net stable funding ratio of 109 percent, both comfortably above regulatory thresholds. Customer deposits remained resilient, totaling KD 4.4 billion, which represents 66 percent of our total liabilities. This further reinforces the strength and stability of our funding base.' He highlighted that the Group's strong start to 2025 reflects ABK's effective execution of strategic priorities and the leveraging of our core banking franchise alongside diversified income streams to drive sustainable growth. Notably, operating profit grew by 5 percent, highlighting the Group's enhanced operational efficiency. Commercial Banking remained the largest contributor to our operating income during the quarter, accounting for 49 percent, followed by Retail Banking at 39 percent, and Treasury and Investments at 12 percent. Our asset allocation remains strategically balanced, with 55 percent allocated to Commercial Banking, 12 percent to Retail Banking, and 33 percent to Treasury and Investments. He added, 'Our focus on operational excellence, digital transformation, and strategic investments continues to yield meaningful improvements. During Q1 2025, ABK's cost-to-income ratio significantly improved to 41.9 percent, down from 46.4 percent year-on-year, reflecting greater efficiency and disciplined cost management across the Group. As of Q1 2025, total assets expanded to KD 7.4 billion, delivering strong year-on-year growth of 13 percent. Net loans and advances increased by 10 percent to KD 4.7 billion, demonstrating healthy lending activity and prudent balance sheet expansion.' Soonawalla closed, 'Our Q1 2025 results highlight our solid profitability, disciplined risk management, and strengthened balance sheet. ABK remains firmly positioned to deliver sustainable growth and create enduring value for shareholders. With a strong foundation and a clear strategic focus, we are confident in our ability to sustain momentum throughout 2025.' The local and global economy Jawad mentioned that the sharp escalation in trade tensions and high policy uncertainty are expected to weigh heavily on global economic activity. According to the latest IMF projections, global GDP growth is now projected at 2.8 percent in 2025 and 3.0 percent in 2026. This marks a downward revision from the earlier forecast of 3.3 percent for both years. Global headline inflation is expected to decline at a slightly slower pace than what was expected in January, reaching 4.3 percent in 2025 and 3.6 percent in 2026. When it comes to Kuwait, the IMF has revised its 2025 GDP growth forecast for Kuwait to 1.9 percent. The adjustment reflects a more measured recovery pace, although domestic demand remains strong and oil output continues to recover. Inflation is expected to stabilize at 2.5 percent, supported by effective monetary policy by the Central Bank of Kuwait. Jawad highlighted, 'In March, Kuwait introduced a new public debt law, setting a borrowing ceiling of KD 30 billion and permitting the issuance of financial instruments with maturities up to 50 years. The move aims to strengthen financial stability, support Kuwait Vision 2035, diversify funding sources, and enhance Kuwait's position as a regional financial hub.' Exceptional results Jawad continued, 'Our strategic focus continues to be on salaried Kuwaitis and high-income expatriates, while placing growing emphasis on youth, who represent the future. We are continuously enhancing our youth offering to further strengthen our overall value proposition. As a result, our retail loan portfolio grew 1.75 times faster than the market in Q1 2025. We also enhanced our cards portfolio with a new prepaid card featuring a dual rewards program.' Furthermore, he affirmed, 'ABK maintains strong credit ratings of 'A' from Fitch and 'A2' from Moody's, reflecting its robust financial position, prudent risk management, and commitment to long-term stability.' Egypt and the UAE Regarding Egypt's macroeconomic landscape, the country is making progress on its macro-economic reform agenda despite regional challenges. The IMF completed the fourth review of Egypt's Extended Fund Facility (EFF), disbursing $1.2 billion and approved an additional $1.3 billion under the Resilience and Sustainability Facility (RSF). Although Egypt's inflation rose slightly to 13.9 percent in April 2025, up from 13.6 percent in March, the rise remains in line with market expectations, reflecting stability despite seasonal demand pressure. GDP growth accelerated to 4.3 percent in Q2 FY 2024/25. Moving on, Jawad shed light on the UAE stating, 'ABK, through its DIFC branch, has successfully closed a landmark $1 billion global syndicated term loan facility for a period of over three years, marking its largest debt facility to date. This significant achievement affirms ABK's robust standing in the financial markets.' The syndication was initially launched at $750 million; however, due to excessive oversubscription by 60 percent, the facility was upsized to $1 billion. This positive response highlights the strong liquidity position and confidence that both regional and international lenders, including those from the Middle East, US, Europe, and Asia, have in ABK. Jawad affirmed, 'This achievement reflects the trust and confidence that our lenders have in our financial stability and strategic vision. We are committed to utilizing these funds to enhance our service offerings and continue to foster sustainable growth.' 'Alongside our funding activities, ABK-UAE continued to advance its strategic agenda in the real estate sector. As a continuation of our Q4 2024 update, ABK-UAE successfully onboarded its first real estate escrow customer, marking a key milestone as the first Kuwaiti bank to offer this service in the UAE. With additional clients in the pipeline, we are now assessing the extension of these services to Abu Dhabi. This aligns with our strategy to strengthen our footprint and competitiveness in the UAE financial sector,' Jawad continued. Complementing the real estate escrow rollout, a dedicated UAE mortgage service for Private Banking clients in Kuwait was also launched. To enhance this service, real estate brokers are being brought on board as key partners, ensuring a more streamlined client experience. ESG ABK continued to build momentum around its ESG agenda, laying the groundwork for future initiatives and enhancements. The Bank remains committed to further integrating ESG principles into key business areas. Looking ahead, ABK plans to publish its updated sustainability report, assess its ESG maturity, strengthen internal capabilities, and explore opportunities that support sustainable value creation. Building on a strong start to 2025, ABK remains committed to accelerating momentum, executing its strategic agenda with discipline, and creating long-term shareholder value.
