KUWAIT: Ahli United Bank announced the financial results of the first quarter ending 31 March 2015, following the endorsement of these statements by the bank board of directors and approved by Central bank of Kuwait. The results of these statements showed noticeable performance improvement and continued growth in profits. On this occasion, the Chairman, Dr Anwar Al-Mudhaf, said that these remarkable results during the first quarter of 2015 indicates Al- Mutahid’s strength to continue and expand its business, notwithstanding fluctuations in the emerging markets.
He added that, based on the momentum built along the last few years, driven by the growth of our balance sheet and the qualified bank staff, we will continue to procure to dominate a larger share in the domestic market in the context of our insistent endeavors to enhance Islamic banking concept to become a vigorous model, not a mere alternative. The most significant results of the first quarter of this year is the growth in Al- Mutahid profits from its core business, whereas the net profits of the bank rose to KD 15.4 million , ie an increase of 27.2 percent, compared with KD 12.1 million for the corresponding period of 2014.
This increase is attributable to the rise in the operating revenues which reached KD 26.3 million, an increase of 6 percent, compared with KD 24.8 million for the corresponding period of 2014. Dr Al-Mudhaf went on to say that the financing portfolio witnessed growth also in all its components, when it reached KD 2,509 million, ie an increase of 1.2 percent, compared with KD 2,480 million, at the end of 2014, thereby driving the total assets to rise to KD 3,724 million, or 3.5 percent, compared with their levels of 2014 which was KD 3,597 million. Notwithstanding the rise in the financing portfolio, the quality assets has not been impacted, whereas the ratio of non-performing financing reached 2.91 percent, compared to 2.93 percent at the end of 2014.
Similarly, the liquidity coverage ratio reached 188 percent. Worth mentioning is that total deposits increased also to reach KD 3,322 million, compared with KD 3,210 million, at the end of the previous year, up by 3.5 percent. It is to be taken into consideration that the returns on customer investment accounts are deemed among the highest in the local market compared with their peers, whereby the six-month investment deposit return reached 1.29 percent, and the annual investment saving accounts return reached 1.39 percent, noting that Al-Motahid is distinguished with calculating and distributing profits on quarterly deposits, according to the results of the bank during the reporting period.
Yet, the financial statements showed convenient levels of liquidity and capital. The capital adequacy ratio reached 15.8 percent against the required ratio of 12.5 percent according to the Central Bank of Kuwait regulations. The ratio of the financing portfolio to deposits reached 75.9 percent, which is deemed one of the highest levels in the market. Accordingly, based on these positive results, shareholders’ equity improved, whereas the earning per share (EPS) for the first quarter 2015 rose to 11.9 fils against 9.4 fils in the first quarter of 2014, and returns on average assets rose by 17 basis points to rise to 1.7 percent in the first quarter of 2015, compared to the first quarter of 2014. The return on average equity improved also by 307 basis points, to reach 18.6 percent. Dr Al-Mudhaf added that this robust start of Ahli United Bank in the first quarter of this year echoes the established position of the bank.
This makes us more ambitious to look forward to a promising future when the bank will be on the lead of financial institutions striving to development and growth in Kuwait and a pioneer in Islamic banking, driven by its reliance on product innovation, technology and integrated solutions and services, seeking for customer satisfaction. At the same time, we confirm our commitment of the continued endeavors to generate ample returns to our shareholders and depositors and will provide the best products and services to our customer.
Dr Al-Mudhaf concluded by saying that we extend our thanks and appreciation to Central bank of Kuwait, the AUBK management and all staff members for their serious efforts and their loyalty, and our thanks are extended also to our loyal customers. It is worth mentioning that Al-Motahid obtained a credit rating from “Fitch” which affirmed the bank’s credit strength on the Long-Term and Short-Term to ‘A+’ and ‘F1’ respectively with a stable Outlook. The banker magazine awarded “Best Private Banking Services” award for the year 2014 to Al-Motahid in Kuwait.
