March 2013
Kuwait International Bank's Ordinary General Assembly adopted a decision to distribute a cash dividend to shareholders at 7% for the fiscal year ended on 31st December 2012. The assembly unanimously elected a new Board of Directors for the next three years which consists of Messrs. Sheikh / Mohamed Al-Jarrah Al-Sabah, Anwar Jawad Bukhamseen, Haidar Hassan Al-Jomaa, Jassim Hassan Zainal, Ahmad Ibrahim Al-Assfour, Raed Jawad Bukhamseen, Abdullah Abdul Samad Maarifi, Abdul Wahab Mosa Alabdalrazag and Najat Hamad Al-Suwaidi.
The Chairman of KIB, Sheikh Mohamed Al-Jarrah Al-Sabah, said in his speech on the occasion of Bank's regular General Assembly held yesterday that the Bank has made a net profit by 13.2 million KD in 2012 compared to 10.8 million KD in 2011, an increase of 21.4%. Additionally, the operating income rose by 44.9 million KD compared to about 39.3 million KD in 2011, an increase of 14.3%. This growth directly reflects the adequat performance of the Bank in achieving its strategic objectives, which considers the growth in sustainable and moderate rates, while taking caution and wariness against all risks, noting that the Bank has awarded allocations by 7.7 million KD, of which 4.4 million KD were as precautionary allocations.
Al-Jarrah said that "Al-Dawli" is proud to achieve such remarkable results despite all discouraging conditions in 2012 through low rates of local economy performance, and the continuing structural imbalances in the local economy, with a significant reduction in incentives growth, to stimulate the local economy; such as the activation of private sector role, the implementation of development plan programs and increasing public and investment spending.
Al-Jarrah also noted that KIB has succeeded during 2012, in diversifying the sources of its income, where fee and commission income increased by 39%, other income rose significantly, and net financing operations rose by about 15% as well. This great performance reflected positively on other key indicators at the end of 2012 compared to 2011, where the total assets rose to about 1.249 million KD compared to 1.118 million KD, an increase of 12%. Also, the percentage of return on assets rose by about 1.11% compared to 0.96%. Earnings per share (EPS) also rose to about 14.1 fils compared to 11.6 fils. Further, the Capital Adequacy Ratio (CAR) has reached a secure rate by 25.23% that exceeds the current regulatory requirements which identified the minimum value of this ratio by 12%. Also, "Al-Dawli" succeeded during this period to achieve concrete results in reducing the level of non-performing loans to total portfolio for which the Bank's management has worked hard to organize, then reduced significantly to reach 8.4% in 2012 compared to 11.2% in 2011.
It's worth mentioning that the growth rates achieved by "Al-Dawli" have been reflected by some important indicators; such as deposits of high growth rate by 13%, the funding growth rate for all sectors rose by 13%, loans ratio to total assets about 63%, the investment volume to total assets about 10%, and total assets growth rate about 11% in 2012 compared to 2011.
On the other hand, Mr. Louay Maqames, the Bank's CEO, commented on the growth rates, saying "Such positive improvements are mainly caused by the Bank's success in achieving its strategy objectives, most important of which the diversification of its funding portfolio, expansion in project and SMEs funding, expanding its branch network and ATMs to cover as much as possible of the geographical area of the State of Kuwait with establishing more branches and ATMs, through locating more ATMs in targeted places to serve Bank's customers and others. This is in addition to the provision of different banking services through "Dawli's Online Service". Also, KIB continued in providing its new banking products that cater to customer requirements; such as "Al-Baraka Deposit", in addition to other various accounts. Kuwait International Bank made proper steps in strengthening its presence abroad through investing in the instruments, particularly in Turkey and some other states."
Maqames also mentioned that KIB shows great interest in recruiting calibers with scientific degrees, qualification and broad skills to occupy executive positions. An initiative that enriches Al-Dawli's role in the banking market. KIB continues to provide its customers with services and Islamic banking products, featured by its easement, high quality and meeting the requirements of all segments with a distinct contemporary style at the same time. Maqames noted that the KIB is being managed, at present, now by a qualified team, fully aware of market conditions and maintain a clear vision vision to implement Bank's strategy and achieve its expected objectives with trust and confidence, since that "Al-Dawli" has proved its high competitiveness ability in the Islamic banking sector and proceeds according to a successful methodology and a deep concept which enhanced its role in the local economy and providing support to the development plan for the benefit of Kuwait.
Finally, the Chairman Sheikh Mohamed Al-Jarrah Al-Sabah, offered his thanks to all who supported and encourage "Al-Dawli" to proceed and move towards bright future prospects, led by the Central Bank of Kuwait for its continuous support, praising its distinct supervisory and monitoring role. Also, he offered his sincere thanks and appreciation to all shareholders and customers who have contributed significantly to the improvement of Bank's financial position during 2012, and his thanks to all KIB's Board members, and to their honor, the members of the Fatwa and Sharia Supervisory Board, and to the executive leadership of the Bank and all staff.
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