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![](/azure/Assets/ContentPhotos/Photos/126677.3 Fils Earnings per Share "Warba" profits jump 21% to KD 19.3 million in 2022.jpg?w=1140&h=600&mode=crop)
Warba Bank announced its annual financial results for the year ending on December 31, 2022, the results showed that the bank achieved net profits of KD 19.3 million, equivalent to 7.38 fils earnings per share, compared to net profits of KD 15.9 million, equivalent to 6.02 fils earnings per share, with a growth rate of 21%, while the financing revenue amounted to KD 129.3 million dinars, growing 35.5% compared to the same period in the year 2021, which amounted to KD 95.4 million. The financing portfolio grew by 26.5% reaching KD 3.13 billion, while the total assets of the bank increased reaching KD 4.2 billion, with an increase of KD 621 million by 17.3%, compared to the previous year, which amounted to KD 3.58 billion and the depositors accounts increased reaching KD 2.7 billion, with an increase of KD 386 million in the year 2022, with a growth rate of 16.8% compared to the year 2021. In addition, the capital adequacy ratio reached 16.94%, exceeding the minimum required by the regulatory authorities, the ratio that proves the stability of the financial position of “Warba".
Commenting on the Bank's annual financial results, Hamad Musaed Al Sayer, Chairman of Warba Bank, indicated that the financial results "Warba" achieved during the year 2022 confirms the success of the Bank’s strategy and the strength of its financial and operational performance. He highlighted the growth in all the basic indicators, the maintenance of remarkable rates with regard to capitalization, maximizing profitability, return on assets, return on equity, cost optimization, improvement of asset quality indicators, and rates of covering bad debts from provisions. These are the matters that led to the Board of Directors' proposed to distribute cash dividends for the year 2022 at the rate of 3% and bonus shares at the rate of 3% as well to the shareholders.
He added: "We achieved strong financial results despite the challenges in the macroeconomic environment, in light of rising levels of inflation, slowdown in economic activity and uncertainties of probable recession. Our strong results are driven by our customer-focused approach, quality products and services excellence, as well as diversification and innovation to achieve sustainable profits.”
He pointed out that the strategy of sustainable profits is achieving its desired goals the matter that is demonstrated by the reported sustainable and balanced growth, emphasising on moving forward with implementing the strategy of focusing on basic banking core activities, in parallel with strengthening digital transformation efforts, in all banking and financing services, enhancing the customer experience, and providing them with easy and safe access to financial services and products, with a focus on accelerating the pace of innovation in digital banking solutions that meet the aspirations of customers.
He added, “The operating environment continued during the year 2022 to gain more momentum, in light of the continued recovery in the pace of commercial activity, the improvement in the pace of consumer spending, and the increase in oil production, which coincided with the rise in prices. This strengthened the public financial situation and gave optimism about an improvement in the pace of capital spending during the coming period. He explained that in addition to the strong financial performance achieved during the year 2022, the bank also continued to fulfil its obligations towards contributing to the promotion of sustainable development.
Al Sayer stated that "Warba" is a fundamental pillar in supporting the national economy and acceleration of the development plan in Kuwait through its pioneering role in providing a wide range of financing solutions. It also plays the role of the lead arranger of major financing deals for institutions and governments.
He emphasized on the continuation of working from a position of strength from which the Bank relies on a prudent strategy, financial stability and capabilities that we possess to provide innovative products and insightful advice that our customers rely on, and our diversified business model continues to create long-term added value for our customers, our communities and our shareholders.
He indicated that Warba Bank presents a milestone in community services affairs that has been proven by the Bank commitment and leadership in social responsibility, by participating in community initiatives in various fields such as health, education, the environment, disabled support, and other community related initiatives.
He stated that "Warba" seeks to expand its role in the small and medium enterprises sector and support youth entrepreneurs being substantial element of sustainability, and one of the most prominent pillars of "Warba" strategy during the coming period, which will enhance its leadership position in the market.
Al Sayer appreciated the trust of shareholders and customers and the support of the Board of Directors, and praised the role of the regulatory authorities, and the efforts of employees, partners and stakeholders, stressing the keenness to continue efforts to maintain the leadership of "Warba" in light of the competition between banks.
From his side, the Chief Executive Officer of Warba Bank, Shaheen Hamad Al Ghanem, said that Warba Bank achieved strong financial results in the year 2022, and continued to achieve strong operational performance across all major business sectors, benefiting from the improvement in the macroeconomic environment, He explained that the Bank's strategy for sustainable growth tends to focus heavily on environmental governance and following the latest and best international standards, in addition to launching initiatives that contribute to advancing the transition towards a sustainable economy, as well as continuing to launch community initiatives in various health and educational fields.
Al Ghanem stated that the Bank witnessed remarkable growth in deposits and the financing portfolio, which supported the improvement in margin levels. The bank also continued to report strong growth in its main business sectors, which included Islamic banking services and asset and wealth management.
He stated that Warba Bank was able to maintain a good level of deposit composition, as the good contribution from current and savings account deposits of the total deposits at the end of the year 2022, and the percentage of customer deposits to the total financing has reached 71% reflecting the quality composition of funding components and strength of liquidity levels.
He continued, saying that: “The Non-Performing Loan ratio improved to reach 1.07% (according to the calculation principles of the Central Bank of Kuwait) for the year 2022 compared to 1.08% as in 2021, and the Bank’s provisions coverage ratio reached 275% at the end of the year 2022 compared to 244% for the year 2021.
Al Ghanim clarified that the main reason for the increase in fee and commission revenues by 1.54 KD million was due to the increase in the volume of trade finance transactions related to the main banking activities and the expansion of the asset and wealth management activities.
Al Ghanem added; that the Bank is ongoingly executing of its continuous growth strategy, investing in digital technologies with the aim to achieve the best returns for shareholders, stressing the Bank's tireless efforts to focus on designing innovative products for its valued customers and constantly expanding its digital offerings, which were recently crowned with many prestigious awards in the category of best digital savings application – Hassala - in Kuwait for the year 2022 from the International Finance Magazine, in appreciation of the Bank’s digital efforts and the distinguished services and digital products it provides and advanced payment solutions throughout the year.
Al Ghanem explained that the bank will continue to strive towards achieving leadership taking extra miles in its excellence journey andboosting itsgrowth rates during the coming period capitalizing on encouraging our professional calibres, improving the competitive advantages of our products and developing technological services.
to meet the needs and expectations of all customers segments, and attract new segments in order to increase its market share.
He added that the Bank's human resources are considered the real wealth and the secret behind the Bank's achievements and consecutive successes, stressing the keenness of Warba Bank's management to develop these resources and invest in them by all possible means in accordance with the latest international standards, including the executive team of experts with focus on the fundamentals of the Banking Industry including customer service quality, investment in digital banking services, and human resources, with particular focus on Kuwaiti manpower.
Al Ghanem pointed out that Warba Bank is considered one of the highest private institutions in employing national manpower, which is currently close to 81% on the other hand the female employees percentage has reached more than 14% of the total Bank workforce.
It worth mentioning that Warba Bank is one of the banks that achieved great successes in a short period, as it occupied a leading position in the field of Islamic digital banking services for individuals, and it is also considered one of the largest local banks in terms of number of shareholders, this is considered one of the most important factors that makes the bank close to all members of the society.
