KUWAIT: Warba Bank achieved excellent profits in the third quarter exceeding expectations for its financial results for the first nine months of 2015. The Bank achieved net profit of KD 1.251 million compared to KD 318,000 for the same period in 2014. The Bank’s total assets grew by 34% reaching KD 682.760 million compared to KD 507.140 million as on 30 September 2014. The Bank maintains high level of asset quality due to the expansion strategy adopted by the Bank in its pursuit for viable financing opportunities risk studied locally and internationally for making investment and achieving lucrative revenues thus supporting the Bank’s future growth, enhancing its competitiveness and increasing its market share in the Islamic banking industry, which witnesses increasing boom.
The realized profits before provisions increased at 100% reaching KD 3.314 million due to the quality and diversity of the Bank’s assets and retaining high growth rates despite the severe competition in the sector. The Bank’s financing portfolio grew by 42% reaching KD 492.386 million by the end of the third quarter 2015 compared to KD 346.747 million for the same period last year.
Mr Emad Abdullah Al Thaqeb, Chairman of Warba Bank, said: “Warba Bank’s strong performance continues to the third quarter with growth ascending trend reflecting the Bank’s solid financial position, successful and flexible strategy that adapts to accelerating economic and legislative recent changes despite the ongoing political and security turbulences in the region.”
Al Thaqeb noted that Warba Bank’s operational revenue grew by 34% reaching KD 13.283 million by the end of the third quarter 2015 compared to KD 9.891 million for the same period in 2014. He assured that the excellent achieved results are the outcome of the operational activities and strong growth in the business volume and high performance which are the main factors for Warba receiving its first time rating of Baa2/Prim-2 for deposits in local and foreign currencies with a stable outlook by Moody’s International Agency. This rating is due to some other factors of which the most important are the good quality of the financing and investment assets portfolio, the low rate of problem financing and the adequate liquidity levels retained and consistently balanced by the Bank.
He pointed out that receiving that rating is a milestone added to the Bank’s record despite the few years of its operation and in such stage and conditions prevailing in the region that press international rating agencies to be more reserved in giving ratings. He added; “Warba Bank demonstrates high capitalization levels due to its solid capital base and the assets’ quality. The tangible common equity “TCE” to risk weighted assets (RWAs) ratio stood at 23.76% as of 30 September 2015 (29.76% as on 31 December 2014), comparing favorably to local banks in Kuwait average of 13.9% as of December 2014 and to the global median of 13.4%.
