Kuwait International Bank (KIB) held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) last Tuesday, March 21, 2023, with 75.4% of shareholders in attendance. The AGM approved the Board of Directors’ recommendation to distribute cash dividends of 4% of the nominal value of shares (4 fils per share) and 4% bonus shares (4 shares per 100 shares) from the issued and paid-up capital.
Sheikh Mohammed Jarrah Al-Sabah, Chairman of KIB, inaugurated the AGM and EGM with a speech in which he spoke about the financial results of KIB amid the changes witnessed by the global economy. He said: “In spite of the challenges posed by geopolitical tensions in some regions of the world and the consequences of the quick return to normal monetary policy overseen by central banks with the aim of controlling high inflation rates, the recovery in crude oil prices and the prudent policies pursued by the Central Bank of Kuwait helped limit the effects of international economic challenges to a minimum on the local economy.”
Al-Jarrah added: “KIB has been keen to develop a robust and flexible business model to adapt to the developments in the operating environment. Thanks to the support of the Board of Directors and the solidarity and dedication of the employees, in addition to the relentless efforts made by the Executive Management, KIB was able to achieve solid results and continue working to implement the strategic plan successfully. This success was made possible through diversifying and sustaining sources of revenue, expanding the scope of financing and investment activities, locally, regionally and internationally, in addition to contributing to joint financing deals in cooperation with customers across diverse sectors, such as communications and oil & gas. Our achievement was also facilitated through Sukuk deals in cooperation with market-leading companies and financial institutions in the region, at the best capital cost, with the aim of reinforcing the Bank’s financial position in the regional capital markets.”
Commenting on the most important achievements based on its financial statements, Al-Jarrah explained that KIB recorded a 25% increase in net profit attributable to shareholders, amounting to almost KD 13.6 million for the year ending December 31, 2022, and earnings per share (EPS) of 7.92 fils, while registering total operating income of almost KD 62.5 million. He further pointed out that the Bank continued to improve its asset quality and value, and as the audited consolidated financial statements indicated, assets grew by 14% to reach almost KD 3.58 billion, compared to approximately KD 3.14 billion in the previous year, while depositors’ accounts grown by 13% to exceed KD 2.3 billion.
Al-Jarrah confirmed that this growth came as a result of an increase in the size of the Bank’s financing portfolio by KD 346 million to reach almost KD 2.62 billion at the end of 2022, compared to KD 2.27 billion at the end of 2021, achieving a growth of 15%, denoting an upward growth trajectory and sound financial performance for the Bank.
He also shed light on the growth in the investment portfolio, especially in securities, which is concentrated on investments in high-quality Sukuk, which increased 4% in 2022, amounting to KD 308 million, compared to KD 295 million at the end of previous year, according to the results of the latest financial statements.
Al-Jarrah added: “During this year, we continued to develop our strategy aimed at adopting a dynamic operating model and an agile approach that seeks to keep pace with the banking sector’s continuous developments; allowing the Bank to adapt to the market’s evolving trends and to achieve the aspirations and requirements of its customers under any circumstance. Meanwhile, the Bank remained committed to investing in its digital infrastructure and bolstering innovation in its operational processes, enabling it to avail services that meet the aspirations of today’s customers and to maintain its leading and competitive position in the banking sector.”
Promising financial results and impressive investment achievements
For his part, Raed Jawad Bukhamseen, Vice Chairman and CEO of KIB, said: “The consolidated financial statements reflect the Bank’s outstanding financial performance over the past year, unfolding in spite of the economic and financial difficulties which continue to impact various vital sectors worldwide. Notwithstanding such a challenging operating environment, we continue to deploy our comprehensive experience in the financial industry, dedicating our efforts to mitigating the impact and burden of these challenges. At the same time, we continue to approach our operations with a studied, cautious and prudent vision; taking thoroughly mapped out steps forward that rely on integrated mitigation policies for risk management as well as approved and reliable approaches to crisis management.”
Bukhamseen added: “The past year was defined by a series of consecutive achievements, which spanned several of the Bank’s businesses and fields of operation. At the top of these achievements was innovatively expanding KIB’s retail banking services, including the development and launch of new products, such as Al Dirwaza draw account, which has become the most competitive investment wakalah account of its kind in Kuwait. In addition, the Bank also offered its customers a wide range of Shari’a-compliant financing deals which aim at supporting and fulfilling their diverse needs. This was made possible through the different strategic partnerships that the Bank signed with some of the biggest companies and service providers – including health-care facilities, educational institutions, and various brands – guaranteeing a comprehensive financing experience for the Bank’s customers.”
On a different note, Bukhamseen stated that the financial statements for 2022 registered a 13% growth in depositors’ accounts, reaching almost KD 2.34 billion, compared to KD 2.06 billion at the end of 31 December 2021. Meanwhile, shareholder equity amounted to KD 254 million. He further noted that KIB maintained adequate levels of Basel III total capital adequacy ratio.
On the digital front, Bukhamseen remarked that 2022 witnessed an expansive digital upgrade that touched upon all of the Bank’s operations, paving the path for the introduction of advanced digital solutions for the majority of its services, including opening accounts online or through the mobile app, in addition to the new contactless payment solutions, as well as other payment solutions that facilitate the fulfillment of payments for government agencies through ‘Tasdeed’ portal. Additionally, the Bank launched its digital platform, PayTally, offering digital benefits that support customers with their financing transactions. This is not to mention that year-round campaigns that KIB launched, enticing customers to adopt digital banking services and solutions. It also serves to note that KIB succeeded during 2022 in establishing Digital Innovation Factory, the Bank’s technological arm, which was designed around modern technologies and innovative systems to develop advanced solutions for the different vital businesses, serving all customers across market segments, whether retail or corporate.
Bukhamseen added: “KIB's efforts included expansion in various fields through the establishment of KIB Mubader Center, which serves entrepreneurs who are running small-and-medium-sized companies, and acting as an incubator and accelerator for their business, as part of an integrated qualifying system that aims at raising a generation of national entrepreneurial talents – all of which stems from the Bank’s faith in the vital role that entrepreneurs play in the growth and development of the private sector and the diversification of the domestic economy. The Bank also established ‘Innovotech Center’, which will be the technology arm of KIB in executing technical projects and future developments needed by the Bank and will also invest in financial services such as Fintech and others.”
Outstanding performance and well-deserved recognition
In the same vein, Mohamed Said El Saka, KIB’s Deputy CEO, said: “The good financial results achieved by KIB for the fiscal year ending on December 31, 2022 reflect its continuous efforts and great focus on enhancing its presence as a prominent brand, and its ability to acquire the flexibility and capabilities necessary to achieve stronger results and more sustainable growth rates in the coming years, while preserving the quality of assets and ensuring their continuous growth.”
El Saka added: “As a result of the positive developments in the Bank’s business activities, KIB successfully won a diverse and unique set of awards and honors through a series of award programs affiliated with the most well-known platforms and media agencies specializing in the economic and financial fields. Among KIB’s most notable accolades was being named as the “Best Islamic Bank in Kuwait in 2022" by the World Finance Magazine. The Bank also received the ‘Best Employee Development and Empowerment in Kuwait in 2022’ award from the Union of Arab Banks and the ‘Best Customer-focused Islamic Banking Products and Services in Kuwait in 2022’ award from the World Finance Magazine, for the second year in a row. Moreover, KIB won the ‘Fastest Growing Islamic Bank in the Middle East and North Africa (MENA) in 2022’ award, and the ‘Best Banking Vision in MENA’ award, for the second year in a row, both of which were awarded by Capital Finance International.”
In other news, El Saka highlighted that the year 2022 witnessed a quantum leap in KIB’s social responsibility program, which has become one of the most distinguished social responsibility programs among institutions. He noted that the Bank renewed its commitment to society, the environment, and the field of corporate governance, as it strives to elevate its developmental role on a large scale and in many fields to reach the largest segment of society. In this regard, KIB established an ESG unit responsible for monitoring the Bank’s institutional sustainable practices, both internally and externally, which follows its success in being the first Kuwaiti institution to join the UN Global Compact, vouching to work in accordance with its ten constituent principles. Furthermore, KIB published its first sustainability report, attesting to its commitment to community service.
Words of appreciation and acknowledgement
Concluding his statement, Al-Jarrah expressed his sincere appreciation to the shareholders, Board of Directors and Executive Management for their continuous support to the Bank. He further expressed his gratitude to the Central Bank of Kuwait for its unwavering support, praising its distinguished supervisory role. Al-Jarrah also thanked the Ministry of Commerce and Industry for its tireless efforts in supporting commercial and economic activities in the country, as well as the Capital Markets Authority for its supervisory and controlling regulations that ensure an attractive and competitive investment environment in Kuwait.
In addition, Al-Jarrah extended thanks to each member of the Bank’s Sharia Supervisory Board, as well as all employees for their outstanding efforts. He also thanked KIB’s valued customers for their trust, continuous support, and effective contribution to the Bank’s achievements over the years. Last but not least, Al-Jarrah praised the efforts made by the State of Kuwait, the Emir, the government and the people, to maintain the stability and security of the country.
