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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.
Zawya
01-05-2025
- Business
- Zawya
Gulf Bank records KD 9.4mln in net profit for the first quarter of 2025
Ahmad Mohammad Al-Bahar: We have begun the groundwork to the potential conversion of the Bank into a Sharia-compliant institution in alignment with our long-term vision for sustainable growth. Gulf Bank's financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector including a declining interest rate environment. Recent government reforms present a promising outlook for national development. The proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment and open a new revenue and growth stream for local banks. Waleed Khaled Mandani: While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts. Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility. We continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles. We remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives. Kuwait: Gulf Bank K.S.C.P. announced its financial results for the first three months ending 31 March 2025. The Bank reported a net profit of KD 9.4 million, a decline of KD 3.5 million or 27% compared to 2024 first three months net profit of KD 12.9 million. In addition, Gulf Bank recorded an operating income of KD 44.0 million for the first three months of 2025, representing a decline of 9% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 20.9 million, representing a decline of 22% compared to the first quarter of 2024. Financial Performance The decline in net profit for the first quarter of 2025 is attributed to the decline in net interest income of KD 3.3 million or 9%, coupled with a decline in non-interest income of KD 1.0 million or 10%, compared to the same period of prior year, respectively. In addition, operating expense has increased by KD 1.5 or 7%, when compared to first quarter of 2024. However, this was offset by a decline in the total provisions which reached KD 11.0 million in the first quarter of 2025, down by KD 2.1 million or 16% when compared to the same period of last year. As for asset quality, the non-performing loans (NPL) ratio was 1.5% as of 31 March 2025, compared to the prior year level of 1.2%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 305% including total provisions and collaterals. Total credit provisions as of 31 March 2025 reached KD 277 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 183 million. As a result, the Bank has a healthy excess provision level of KD 94 million, above and beyond what is required by the IFRS 9 accounting requirements. Compared to 31 December 2024, total assets increased by 1% to KD 7.5 billion, net loans and advances increased by 3% to KD 5.6 billion, while total deposits stood at KD 5.5 billion and total Shareholders' equity reached KD 808 million. The Bank's regulatory Tier 1 ratio of 14.9% was 2.9% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 17.0% was 3.0% above the regulatory minimum of 14%. On the 22nd of March 2025, Gulf Bank held its Annual General Assembly Meeting, where shareholders approved the distribution of a cash dividend of 10 fils per share for the year 2024, representing a 63% cash payout ratio per share, in addition to a distribution of 5% bonus shares. Growth Foundations Commenting on the financial results for the first quarter of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: 'Gulf Bank's financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector. Despite ongoing headwinds, Gulf Bank's underlying fundamentals remain strong, supported by a resilient balance sheet, sound risk management, and a clear strategic direction. While net profit of KD 9.4 million and operating income of KD 44.0 million in the first quarter of 2025 were lower than the same period last year, this was driven by systemic factors, including a declining interest rate environment, which continued to exert pressure on net interest margins and overall profitability." He continued: "The global economic landscape remains volatile. Geopolitical tensions, newly imposed tariffs, and ongoing trade restrictions are weighing on market confidence. These recent developments may affect government capital spending, particularly on development projects, which could slow credit demand and investment momentum." "Locally, recent government reforms present a promising outlook for national development. The approval of the long-anticipated Public Liquidity and Finance Law, with a borrowing ceiling of KD 30 billion, will enable the government to finance strategic infrastructure initiatives and support efforts to diversify revenue sources beyond the oil sector. This measure is expected to stimulate overall activity and create new opportunities for growth within the banking industry. Furthermore, the proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment by permitting commercial banks to provide housing finance solutions, thereby opening a new revenue and growth stream for local banks. These legislative, among other advancements, align with Kuwait's Vision 2035 and are expected to boost investor confidence and support long-term prosperity." Strategic progress Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Waleed Khaled Mandani said: 'As we reflect on our performance in the first quarter of 2025, we remain focused on delivering long-term value, amidst the pressures of the macroeconomic landscape. While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts that reinforce the Bank's underlying strength and long-term direction. During the quarter, Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility. The transaction, which was significantly oversubscribed, attracted strong participation from both regional and global institutions, underscoring investor confidence in the Bank's credit profile and strategic vision. This diversifies our funding base, enhances financial flexibility, and positions us to support future growth opportunities more effectively. In parallel, we continued to invest in our most valuable asset, our people. During the quarter we continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles. This reflects our commitment to developing national talent and building leadership from within. By nurturing internal capabilities, we promote continuity, reinforce our culture, and enhance our ability to navigate a dynamic and evolving market landscape. Looking ahead, we remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives, as we navigate the evolving economic landscape with resilience and purpose.' Credit Ratings Gulf Bank's financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of 'A' with a Stable Outlook, while Moody's rated long-term deposits at 'A3' with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of 'A+' with a Stable Outlook, further highlighting the Bank's stability and sound risk management practices. Appreciation Mr. Al-Bahar concluded his remarks by saying: 'As we progress through 2025, Gulf Bank remains focused on executing its strategic priorities with discipline and resilience. In line with our long-term vision for sustainable growth, we have initiated the groundwork for the potential conversion to a Sharia-compliant institution (subject to regulatory approvals), an important step aligned with our long-term vision for sustainable growth. On behalf of the Board of Directors, I extend our sincere appreciation to our shareholders for their continued trust, our employees for their dedication, and the Regulatory Authorities for their valued support. Most importantly, we thank our customers for their loyalty and reaffirm our commitment to delivering a best-in-class banking experience.' Key Financial indicators for the first quarter 2025: First Quarter 2025 net profit of KD 9.4 million. First Quarter 2025 operating income of KD 44.0 million. Net loans and advances grew by 3% year-to-date to reach KD 5.6 billion. Non-performing loan ratio for the First Quarter 2025 was 1.5%, with a solid non-performance loan coverage ratio of 305% including total provisions and collaterals. Capital ratios as of 31 March 2025, Tier 1 ratio was 14.9% and Capital Adequacy Ratio (CAR) was 17.0%.
Business Wire
21-04-2025
- Business
- Business Wire
Grupo Supervielle Announces Filing of the 2024 Annual Report on Form 20-F
BUENOS AIRES, Argentina--(BUSINESS WIRE)-- The Company's financial statements for the year ended December 31, 2024 that the Company published in Argentina on March 10, 2025 were issued under the International Financial Reporting Standards ('IFRS') as adopted by the Central Bank of the Republic of Argentina (the 'BCRA'), subject to the following exceptions: (i) IFRS 9 'Financial Instruments' with respect to the initial recognition of public sector debt instruments received in an exchange of bonds that should be recognized under the accounting rules of the BCRA at the book value of the financial asset exchanged; (ii) IFRS 9 'Financial Instruments' with respect to expected credit loss of financial instruments of the public sector; and (iii) option to classify holdings in dual bonds at amortized cost or fair value through other comprehensive income. Notwithstanding the foregoing, the Company's financial statements filed with the SEC have been presented under IFRS without exceptions, given that no partial adoption of IFRS is permitted. The Company's financial statements filed with the SEC present significant differences with respect to the Company's financial statements issued under the BCRA standards. In compliance with the New York Stock Exchange rules, the Form 20-F is available on the Company's website at In addition, all shareholders of the Company may request, free of charge, a hard copy of the Company's complete audited financial statements filed with the SEC. To request a hard copy of the Company's audited financial statements, or for any other inquiry in respect of this press release, please contact the Investor Relations Department of the Company, whose contact information is as follows: IR-GrupoSupervielle@ About Grupo Supervielle S.A. (NYSE: SUPV; BYMA: SUPV) Grupo Supervielle provides a wide range of financial and non-financial services to our clients and have more than 130 years of experience operating in Argentina. Our main subsidiary is Banco Supervielle S.A. and we have a distribution network comprising our own physical branches, which are primarily located in the Autonomous City of Buenos Aires, Greater Buenos Aires, and the Argentine provinces of Mendoza and San Luis. Additionally, we provide digital and virtual coverage with agile solutions tailored to our users' needs across most of Argentina. We provide access to investment opportunities through our subsidiaries InvertirOnline S.A.U. and Portal Integral de Inversiones S.A.U. ('IOL invertironline'), Argentina's first specialized online trading platform, helping our customers grow their income and savings with innovative tools. Since May 2016, the shares of Grupo Supervielle are listed on the ByMA and NYSE. The subsidiaries of Grupo Supervielle are: (i) Banco Supervielle S.A., which is the seventh largest private bank in Argentina in terms of loans; (ii) Supervielle Seguros S.A., an insurance company; (iii) Supervielle Productores Asesores de Seguros S.A., an insurance broker; (iv) Supervielle Asset Management S.A., a mutual fund management company; (v) Supervielle Agente de Negociación S.A.U., a brokerage firm offering services to institutional and corporate customers; (vi) IOL invertironline, Argentina's leading digital retail brokerage platform specialized in online trading and other financial investment services; (vii) Espacio Cordial de Servicios S.A., an entity offering retail non-financial products, such as assistance and tourism; and (viii) Micro Lending S.A.U., a company specialized in car financing. Our subsidiaries also include Sofital S.A.U.F.e I., a holding company that owns shares of the same companies owned by Grupo Supervielle, IOL Holding S.A., a holding company that owns shares of IOL invertironline, and Bolsillo Digital S.A.U., which is in the process of being dissolved. As of the date of this press release, Grupo Supervielle's network includes 130 bank branches, digital channels and virtual branches, and commercial partnerships, serving 2 million active clients.
Zawya
21-04-2025
- Business
- Zawya
Bad debt securitisations to support Saudi debt capital market: Fitch
Potential bad debt securitization will support Saudi Arabian banks' liquidity profiles and capital ratios and develop the debt capital market, according to Fitch Ratings. Impaired loans, known as stage 3 loans under IFRS 9, fell to SAR 41 billion ($10.93 billion) in 2024, 1.4% of total loans, down from SAR 49 billion at the end of 2022. The drop was due to loan write-offs and reduced generation of problem loans on the back of the healthy operating environment. New impaired loans were about SAR10 billion in 2024 compared to SAR14 billion in 2023 and SAR 16 billion in 2022. Banks are also likely to opt for securitising written-off exposures. However, the par value of the associated bonds would be low as most of the exposures are deeply impaired. Banks wrote off SAR 43 billion of debt in 2022-2024. Domestic lenders are also expected to start securitizing more residential mortgage loans. This will have a big impact on funding diversification and the development of the debt capital markets, as the combined mortgage book of Saudi banks is about SAR 700 billion. However, the banking sector is expected to see a credit growth of 12-14% in 2025, as lending will outpace deposits. This will widen the deposit gap, which reached SAR 300 billion in 2024, Fitch said. 'Even if all bad loans are securitised, the gap will not shrink much,' it added. (Editing by Seban Scaria
Yahoo
14-04-2025
- Business
- Yahoo
Manulife names new chief actuary
Manulife has appointed Stephanie Fadous as the company's chief actuary, succeeding Steve Finch. Last month, the company named Finch as the president and CEO for Asia. Finch will take over the role from Phil Witherington, who has been named president and CEO of Manulife, with the current CEO set to retire. All the mentioned appointments will be effective from 9 May 2025. In her new capacity, Fadous will be part of Manulife's executive leadership team and will report to Witherington. Witherington added: 'I am pleased to be welcoming Stephanie to our Executive Leadership Team. Her ability to drive meaningful outcomes and strong focus on delivering results will further strengthen our talented, global team.' Fadous is currently Manulife's global treasurer and head of capital management, and she has been developing global funding strategies and managing the company's relationships with rating agencies and banks. Fadous' experience with Manulife also includes leading global implementation of the IFRS 17 and IFRS 9 accounting standards. Her career at Manulife has spanned various roles across global finance, group actuarial, corporate development and asset liability management teams. Manulife CEO and president Roy Gori said: 'Stephanie's deep understanding of our company, commitment to leading with our values and unwavering focus on continuous growth will serve her well as Chief Actuary.' Currently, Manulife global head of investor relations Hung Ko will take on the role of global head of treasury and investor relations, succeeding Fadous. Ko has more than 20 years of experience in the insurance industry. Manulife Financial reported net income of $1.64bn (C$2.28bn) attributable to shareholders for the fourth quarter of 2024, a decrease from $1.66bn in the same quarter of the previous year. The company's net income attributed to shareholders for the full year increased by 5%, reaching $5.4bn, up from $5.1bn in 2023. "Manulife names new chief actuary " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
