Latest news with #AlAhliBankofKuwait
Business Times
30-06-2025
- Business
- Business Times
Asian banks fuel more than US$2 billion loan boom in Middle East
[HONG KONG] Middle East borrowers are ramping up loans that are being syndicated in Asia-Pacific as they look to diversify fundraising beyond global bond and domestic markets. More than US$2 billion of Middle East deals targeting Asian bank liquidity have launched in recent weeks, including Saudi Electricity's US$1 billion loan, Banque Saudi Fransi's US$750 million facility and a US$500 million financing for Al Ahli Bank of Kuwait. The growing need for Middle East borrowers, primarily those from the Gulf States, to look beyond domestic capital markets comes as many regional economies press ahead with expensive diversification plans, in an environment where low oil prices are seen as challenging growth and finances. Saudi Arabia is running a fiscal deficit, with oil prices being far below the level of US$92 a barrel, the International Monetary Fund says it needs to balance its budget. That's led to the government and Saudi companies ramping up borrowing to fund Crown Prince Mohammed bin Salman's US$2 trillion transformation programme. Meanwhile, Qatar, Kuwait and the United Arab Emirates are among others that have agendas that will require heavy investment over several years to diversify revenues away from traditional energy sources. 'Middle Eastern borrowers, given the significant borrowing requirements, have been much more open to diversifying their lending relationships and willing to tap into the demand from Asia,' said Amit Lakhwani, global head of loan syndicate at Standard Chartered. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Asia also offers opportunities to borrow in new currencies or tenors versus what is available to them in the Middle East market, he added. The volume of loans raised by Middle East borrowers in Asia-Pacific touched a six-year high of US$5.2 billion in 2024, according to Bloomberg-compiled data. The flurry of recent deals also follow the closing of Qatar National Bank's US$2 billion borrowing in March that drew nearly 30 lenders, largely comprising Chinese, Japanese and Taiwanese banks, the data showed. Such deals have historically done well in Asia. There's a huge demand from Asian banks to join the loans of Middle Eastern borrowers, given the dearth of transactions back home. The volume of syndicated facilities – denominated in the US dollar, euro and Japanese yen – slumped 30 per cent to US$53 billion so far this year in Asia-Pacific ex-Japan, according to Bloomberg-compiled data. That's the lowest tally in at least a decade. Moreover, not only do companies from the Middle East often have better credit ratings, but such deals are able to offer higher returns versus similarly-rated Asian entities, said Aaron Chow, managing director for loan capital markets, Asia-Pacific at Sumitomo Mitsui Banking. The recent five-year loan of Saudi Electricity, which is rated A+ by Fitch, pays an interest margin of around 85 basis points over the benchmark Secured Overnight Financing Rate. In contrast, the recent nearly five-year borrowing of South Korea's Shinhan Card, which is rated A by Fitch, offers a margin of 80 basis points over SOFR. Still, some of these deals could experience some headwinds given that banks have internal limits on how much capital can be deployed into a specific country and sector. BLOOMBERG
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.
Arab Times
16-04-2025
- Business
- Arab Times
ABK Holds Ordinary and Extraordinary General Assembly Meetings for the Financial Year Ended 31 December 2024
KUWAIT CITY, Apr 16: Al Ahli Bank of Kuwait (ABK) Group held its Ordinary and Extraordinary General Assembly for the financial year ended 31 December 2024, with an attendance rate of 90.910% of shareholders. The meeting was chaired by the Chairman of the Board, Talal Mohammed Reza Behbehani, and attended by Acting Group CEO Mr. Abdulla AlSumait, members of executive management, and representatives from the Ministry of Commerce and Industry, and Kuwait Clearing Company. The assembly approved all items on the agenda, including the distribution of cash dividends at 10% (10 fils per share) and free bonus shares at 5% (5 shares for every 100 shares held). The meeting also reviewed the Board of Directors' report on the 2024 results, the auditor's report, and other items. Following this, the new Board of Directors for the next three years (2025–2027) was elected, comprisingTalal Mohammed Reza Behbehani;Salah Ahmed Al Serhan;Ali Ebrahim Hejji Hussain Marafi; Khaled Othman Abdulwahab Al Othman; Adel Ibrahim Yali Ahmed Behbehani; RaedAbdulkareem Al Moamen; and The Public Institution for Social Securityas non-independent board members. This is in addition to Tarek Fareed Abdulrahman Al Othman; Dr. Mahdi Ismael Ali Al Jazzaf; Ahmed Abdullah Mohammed Al-Baghli; Dr. Mohammad Munther Abdul Kareem Al-Zuhair as independent board members; andShaimaa Mohammed Abbas Bin Hussain as a reserve independent board member. Furthermore, Behbehani Investment Company and Mohammad Saleh & Reza Yousuf Behbehanias reserve non-independent board member. Sustainable Growth On this occasion, Chairman Talal Mohammad Reza Behbehani stated, 'We have maintained sustainable growth in our net profits and various financial indicators by consistently keeping pace with developments. This reflects our ongoing commitment to maximizing shareholder returns and providing added value to all our stakeholders, thereby strengthening their trust in the Group and reinforcing our leading position in the banking sector in Kuwait and the regional markets in which we operate, including the United Arab Emirates and Egypt.' He added, 'The Group achieved net profits of KD 52.41 million by the end of 2024, a 16% increase, with earnings per share reaching 21 fils, up 17% year-on-year. Net operating profit rose by 11% to KD 107.41 million, while total assets reached KD 7.37 billion, growing by 17%. Customer deposits grew by 16% to KD 4.42 billion, while the loan portfolio increased by 13% to KD 4.83 billion. Operating income also increased by 9% to KD 200.75 million.' He continued, 'Our non-performing loan ratio (NPL) dropped to 1.23% from 1.67% in 2023, covered by provisions at 460%. Capital adequacy ratio (CAR) stood at 16.94%, and shareholders' equity increased by 1.4% to KD 628 million.' Behbehani confirmed that these indicators reflect the Group's success in achieving its strategic goals, thanks to the outstanding performance of all divisions and their dedication to continuous achievement. He stressed the Group's commitment to maintaining strong profitability, sustainable growth, and innovation in banking services, products, and solutions, in line with its newly approved strategy and clear vision across all levels, with a focus on strategic expansion and leveraging growth opportunities in local and regional markets. He emphasized the Group's forward momentum in enhancing service quality, maintaining growth momentum, strengthening its strong financial position, improving asset quality, and diversifying income sources. He also highlighted the Group's readiness to seize opportunities arising from new economic decisions aimed at stimulating activity in the Kuwaiti and regional markets, and its preparedness to finance major development projects that will be launched as part of the New Kuwait 2035 vision. He further noted that ABK continues to reinforce its leading position in Kuwait and the markets it serves, evidenced by winning over 15 awards in 2024 from global institutions specialized in evaluating banking performance locally and regionally. Egypt and the UAE Behbehani noted that ABK-Egypt achieved strong net profit growth of 137% in 2024, reaching EGP 6.6 billion. This was due to a sustainable growth strategy and flexible business plans aligned with the evolving banking sector in Egypt and a commitment to delivering added value for both customers and shareholders. Meanwhile, ABK–UAE continued to significantly contribute to the Group's financial results by enhancing its services and products. The DIFC branch participated in syndicated loans exceeding USD 10 billion across GCC countries, Europe, Asia, and others during 2024. Digital Transformation Behbehani noted that 2024 was a landmark year in ABK's digital transformation journey under its integrated strategy aligned with the 'Simpler Banking' vision. This included launching a newly designed website that offers customers a seamless, 24/7 experience with top-tier security standards. He highlighted the Group's collaborations with leading companies to introduce new digital solutions and its readiness to leverage artificial intelligence (AI) technologies by partnering with specialized institutions to enhance operations and drive innovation. He thanked the regulatory authorities, including the Central Bank of Kuwait, the Ministry of Commerce and Industry, Kuwait Clearing Company, Boursa Kuwait, the Central Bank of Egypt, and the Central Bank of the UAE for their continued support of ABK and the banking sector. He praised the executive management team for successfully executing strategic plans and commended employees as the Group's most valuable asset, urging everyone to strive for further achievements in the coming period to meet the needs of existing and prospective customers. Strong Performance Acting Group CEO Abdulla AlSumait stated, 'The year 2024 witnessed significant developments in ABK's operations, as we continued to provide solutions that meet diverse customer needs and enhanced operational efficiency across all divisions.' He emphasized that ABK's strong 2024 performance reflects its adaptability and customer-first approach, noting success in enhancing the product portfolio, diversifying income sources, expanding market share, and attracting new customers to the ever-growing ABK family. Al-Sumait added that these results were achieved through meticulous planning, coordination among departments, and adherence to excellence while offering innovative solutions in line with global developments. Branch Upgrades AlSumait noted that ABK continued its branch renovation plan in 2024, reopening Jabriya and Zahra branches with modern designs featuring the latest banking technologies. The plan will continue in the upcoming period to include more branches across Kuwait. He affirmed that ABK is committed to continuously upgrading its digital infrastructure and systems while adhering to the highest security standards to safeguard customer data—solidifying ABK as their preferred banking partner. He highlighted the launch of several new accounts and successful campaigns in 2024, including a special offer for oil sector employees, a new family banking bundle, a UAE mortgage loan, and real estate escrow agent services in the UAE. These offerings reflect ABK's ongoing commitment to providing integrated, tailored services and solutions for all customer segments. He also revealed ABK's intention to surprise customers with exclusive campaigns and offers designed to meet their needs and deliver benefits through diverse banking solutions. Employee Development AlSumait affirmed ABK's dedication to enhancing employee performance through continuous investment in training programs, promoting productivity, and fostering a positive work environment that drives innovation. He also emphasized the Bank's ongoing efforts to attract top talent and improve employee benefits to strengthen loyalty and engagement. 'Let's Be Aware' Campaign AlSumait stated that ABK continued to support the 'Let's Be Aware' campaign in collaboration with the Central Bank of Kuwait and the Kuwait Banking Association to raise awareness of banking services and promote financial inclusion. This included hosting events and offering targeted digital content on banking topics, helping ABK secure a top ranking in the campaign's annual evaluation. He stressed that social responsibility remains a cornerstone at ABK, which actively engages with all segments of society and supports educational, sporting, cultural, environmental, and humanitarian initiatives through sponsorships and participation. Sustainability Report In 2024, ABK issued its fourth sustainability report, highlighting key operational developments, carbon emission reduction achievements, significant support for SMEs, and strong social responsibility efforts—demonstrating its leadership across sectors. Additional Tier 1 Bonds In 2024, ABK issued USD 300 million in Additional Tier 1 capital bonds at a 6.5% annual yield. This marked ABK's return to global debt markets since 2018, with overwhelming demand—oversubscribed by 4.5x—reflecting high investor confidence in the Group's strength and financial stability. High Credit Ratings ABK maintained strong credit ratings of A from Fitch and A2 from Moody's. These ratings reflect global and institutional confidence in ABK's financial position. Premier Market Listing In 2024, ABK's stock was promoted to the Premier Market on Boursa Kuwait due to its compliance with qualification requirements. This increased institutional trading and demonstrated ABK's commitment to meeting regulatory standards and maintaining its status in the index.
Arab Times
24-03-2025
- Sport
- Arab Times
ABK sponsors Al-Arabi Club Futsal Championship and Heroes Penalty Tournament
KUWAIT CITY, March 24: Al Ahli Bank of Kuwait (ABK) has announced its sponsorship of the Al-Arabi Club Futsal Championship and the Heroes Penalty Kick Championship, held during the holy month of Ramadan. The event featured participation from numerous teams and children in a lively entertainment setting, along with various prize draws. The sponsorship of the two championships is part of ABK's social responsibility program during the holy month. The initiative emphasizes participation in sports activities and encourages community members to partake in them regularly. On this occasion, Sager Albenali, Chief Communications Officer at ABK, stated, "This sponsorship highlights our deep commitment to sports. We are dedicated to encouraging youth and new generations to engage in sports activities, given their crucial role and importance in maintaining health. Additionally, we aim to provide essential guidance for adopting a healthy lifestyle that suits them." He added that sponsoring the championship demonstrates the Bank's ongoing dedication to ensuring the success of events in various sectors. It also reflects ABK's commitment to strengthening its presence among all segments of Kuwaiti society, as part of its continuous efforts to enhance its standing in the local market. Albenali concluded by affirming the Bank's commitment to social responsibility, which forms a core component of its role as a leading banking institution in the Kuwaiti market.
Zawya
24-03-2025
- Business
- Zawya
Kuwait to open mortgage market for the first time
KUWAIT CITY - Kuwait is preparing to allow banks to offer mortgages for the first time, a major development that could reshape the country's financial sector. The legislation is expected to be passed soon by the Council of Ministers, according to sources familiar with the matter. This move could open up a market potentially worth $65 billion, which would expand lenders' credit portfolios by 40%, according to the sources, who requested anonymity due to the sensitive nature of the information. Historically, mortgages were not permitted or regulated in Kuwait due to concerns over the political ramifications of foreclosures on citizen-owned homes. Instead, the government has offered a public housing program, where married citizens can receive highly subsidized housing or a plot with a low-interest loan. However, the system has faced significant challenges, with a backlog of 103,000 housing requests and wait times stretching over a decade. This has led the government to plan major changes to address the situation. Kuwait's oil wealth has positioned it as one of the world's richest nations, but policy stagnation has caused it to fall behind its more ambitious neighbors in the region. The upcoming mortgage law is expected to provide a "structured framework" to improve home financing access for eligible citizens, according to Abdulla Al Sumait, acting group CEO of Al Ahli Bank of Kuwait. Al Sumait referred to the development as a transformative step for the country. The introduction of the mortgage law comes just 10 months after Kuwait's emir suspended parliament for up to four years, allowing the government—led by the Al-Sabah family—to pass important legislation. Just days before, the cabinet had approved a draft decree that set the stage for Kuwait to sell international debt for the first time in eight years. These political moves have already created optimism in the markets, with Kuwaiti stocks outperforming their Gulf peers this year, particularly driven by banks like Boubyan Bank KSCP, Burgan Bank SAK, and Warba Bank KSCP, which have each seen gains of 17% or more. The significant demand for housing in Kuwait suggests that even with regulatory limitations, the introduction of mortgages could greatly enhance the profitability of Kuwaiti banks, according to Justin Alexander, director of Khalij Economics and an analyst at GlobalSource Partners. The new development could also attract foreign interest in Kuwaiti banking stocks. Currently, foreign investments in Kuwaiti banks total 4.7 billion dinars ($15.3 billion), representing 15% of the sector. 'This opportunity extends beyond just housing finance, considering the large-scale infrastructure investments needed to develop new residential areas to meet the growing demand for housing in Kuwait,' said Sheikha Al-Bahar, deputy group CEO at the National Bank of Kuwait. Bloomberg Intelligence analysts suggest that the new legislative amendments could include provisions on mortgage durations, state subsidies, interest rate caps, and regulatory limits such as debt service ratios. A growing mortgage market could stimulate the construction sector and drive domestic credit growth, potentially reaching high single-digit growth over the medium term. The mortgage law is also expected to spur real estate development in the coming years. 'It should increase project awards for creating infrastructure and new cities and boost housing starts,' said Jaap Meijer, head of research at Arqaam Capital in Dubai. Behind the scenes, the government is also making strides with other urban development projects. The Public Authority for Housing Welfare has signed a consulting services contract to develop three residential sites with more than 5,000 housing units. Kuwait's market is considered relatively untapped compared to its neighboring countries. Bader Al-Saif, an assistant professor at Kuwait University and associate fellow at Chatham House, stated, 'Kuwait offers much. It's an untapped market when compared to its immediate neighbors.' The planned changes signal the government's commitment to addressing the country's housing challenges and improving the financial landscape.
