Bank gives nod to bonus shares of 5%;AGM held with 92.851% attendance
03/04/2018 05:39 AST
Chairman of Ahli United Bank, Dr Anwar Al Mudhaf assured that "In 2017, Ahli United Bank has witnessed a 10.4% growth in net profits which reached KD 44.5 million (2016: KD 40.3 million) thanks to the strengthening of our core earnings, achieving a net finance income growth of 18% during 2017. Ahli United Bank has recorded sound results which have reinforced the Bank's financial status, strengthen its performance, and maintain its position as a leading Islamic bank, both locally and regionally.
Furthermore, the Bank achieved growth in total operating income of 8.1% to reach KD 120.1 million as at the end of 2017 (2016: KD 111.1 million). In parallel, the equity attributable to shareholders has increased by 5.7% reaching KD 406.9 million as of Dec 31, 2017 up from KD 385 million at the end of 2016. Similarly, net operating income increased by 5.8%, reaching KD 81.7 million by end of 2017 (2016: KD 77.2 million).
Dr Al Mudhaf's speech came during the Bank's 2017 Annual General Meeting held on 01 April 2018, at the Bank's Head Office, with % 92.851 attendance, which approved a cash dividend of 13% and bonus shares of 5% of issued and paid up capital (13 Fils per share and 5 shares per 100 shares, respectively).
Dr Al Mudhaf explained that "Ahli United Bank maintained a sound capital adequacy ratio of 18% on Dec 31, 2017 (18.2% on Dec 31 2016), before dividend distributions, a ratio that is comfortably higher than the required regulatory level. This provides room for future expansion in both customers' credit facilities and the Bank's core businesses.
Furthermore, the Bank achieved a return on average equity and a return on average assets of 11.4% and 1.2% respectively as at the end of 2017, being amongst the highest key performance indicators in the local market. This has led earnings per share to increase from 24 fils in 2016 to 24.4 fils per share as at the end of 2017.
"Despite the continued challenging global operating environment, Ahli United Bank continues to pursue its role as a leading financial institution that is striving to play an active role in the economic growth within "Kuwait's New Vision 2035." In doing so, the Bank recognizes and benefits from the strengths of Kuwait's operating environment which include political stability, large sovereign assets, and the greater stability in oil prices. Such positive factors ultimately reinforce the status of Kuwaiti banks in general," he added.
2017: The Year of the Awards
Since its establishment in 1942, Ahli United Bank's development journey has accompanied and reflected the growth that Kuwait has experienced. The progress and development witnessed in the country over many years is reflected in the Bank's own path and throughout the many changes it has undergone. However, the Bank's values have remained steadfast and at the core of all that we do.
Ahli United Bank has been recognized and honoured by renowned and well-respected entities in the international financial and banking sectors, by receiving many prestigious awards to be added to a long list of accolades earned in the past. Accordingly, the Bank received the "Best Islamic Bank Award" in Kuwait for 2017 from "Islamic Business and Finance" magazine. The Bank also won the "Best Digital Bank of 2017" award in the Middle East (within the corporate banking sector) from "Global Finance" magazine which was proof of Ahli United Bank's innovative digital capabilities and ability to provide the best banking solutions for its customers. Furthermore, the Bank won the "Sukuk Deal of 2017" award in Kuwait from "International Finance" magazine for its debut issuance of the Additional Tier 1 Capital Sukuk of $200 million in 2016, which was oversubscribed by three times as a result of strong demand from investors in the Middle East, Asia and Europe. The Bank also received many other awards during the year that further highlighted its quality performance, particularly in Private Banking & Wealth Management and for excellence in Contact Center services.
As a recipient of many prestigious awards earned across different banking disciplines in 2017, we are positive and optimistic about the future, as we move towards further growth and development. Whilst recognizing our strong legacy over the past 76 years, we can look to the future with confidence as we strive to consolidate our reputation and deepen the trust of our customers through continued improved products and services.
Strong Credit Ratings
Ahli United Bank has continued to receive high credit ratings from major international credit rating agencies. The Bank maintained a credit rating of "A+" and "F1" on the long term and on the short term respectively, with a stable outlook by Fitch Ratings, in addition to receiving an "A2" with a stable outlook on its local currency rating by Moody's. Capital Intelligence reaffirmed the Bank's long term credit rating of foreign currency at "A+" and enhanced the short term foreign currency rating to "A2". These ratings reaffirm the credit standing, capital quality and stability of the Bank.
Sound and Effective Governance
In 2017, Ahli United Bank was able to perform based on a sound and effective governance system that applies and commits to the best governance standards which define its operations according to the Islamic Shari'ah. Throughout 2017 the Bank implemented the Central Bank of Kuwait's revised requirements for Shari'ah Supervisory Governance in Kuwaiti Islamic Banks to further develop Kuwait's Islamic Banking sector. The Bank is fully committed to these requirements and will benefit from them as we continue to improve our future performance.
Human Capital: One of Our Most Valuable Assets
There is no doubt that our human capital counts as one of the Bank's most valuable assets. Accordingly, we constantly strive to enhance our human resources, invest in upskilling, training, and improving the knowledge of our staff, providing them with a work environment that promotes innovation and provides for their development opportunities.
It should be emphasized that Ahli United Bank is perceived as one of the top employers in Kuwait, offering an attractive and stable work environment for employees. In fact, a number of staff members have been working for the Bank for more than 30 years, many of whom started their careers at the Bank. The Bank is equally committed to the recruitment of promising national talent, and providing and environment of development and learning as they further their careers.
Social Responsibility & Sustainable Development
The Bank enjoys a proven record of socially responsible initiatives over many years. In 2017, Ahli United Bank remained committed to its role towards the community by sponsoring many social, educational, humanitarian, charitable, and sporting events. This was in line with the Bank's corporate social responsibility program that was based mainly on volunteer work encouraging staff to engage in the community. The Bank firmly believes in instilling the spirit of initiative and collaboration between employees and increasing their engagement in support of different social causes.
Arab Times
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