Search
Clear
Search
Warba Bank announced its business results for the first half ending on June 30, 2023, and these results indicated that the Bank's net profit amounted to KD10.255 million, equivalent to 4.23 earnings per share.
The Bank said in a press statement that the total assets as at the end of June 2023 grew by 12.51% to reach KD 4.727 billion, compared to KD 4.201 billion at the end of 2022, while the total financing portfolio amounted to KD 3.453 billion, compared to KD3.130 billion as of December 31 of 2022. The total accounts of depositors amounted to KD2.930 billion at the end of the second quarter of this year 2023, compared to KD 2.674 billion as at the end of December 2022, and the total operating revenues for the first half of 2023 amounted to KD118.5 million, with a growth rate of 70%, compared to the same period last year.
The balance of investment in sukuk as at the end of the second quarter of 2023 amounted to KD333.6 million, an increase of KD 48.7 million, or 17% over the end of the previous year 2022. The total shareholders’ equity reached KD 303.3 million at the end of June 2023, and the capital adequacy ratio reached 15.3%, exceeding the minimum required by the regulatory authorities, which confirms the solid financial position of "Warba".
Commenting on the Bank’s quarterly financial results, Chairman of Warba Bank Hamad Musaed Al-Sayer said: “We achieved strong results in the first half of this year 2023, despite the challenges of the global economic environment and developments in global markets.” Al-Sayer emphasized that Warba enjoys a strong financial position and a solid and stable capital base, which supports meeting the growing needs of its clients as well as achieving the best returns for its shareholders, explaining that the Bank will continue in 2023 to invest carefully in its employees, capabilities and digital technologies, in order to secure the future growth of the Bank.
He pointed out that "Warba" has proven during the previous period the success of its comprehensive strategy in risk management, through proactive reading of market risks and careful study of the results of stress tests required according to strict scenarios, which helped "Warba" in expanding the scope of treatments for any sudden challenge, and reduced risks and exposures. In the past period, Warba resorted to improving the indicators of asset quality and total operating income, which gives the bank increasing confidence in facing challenges and taking advantage of future opportunities without any fears. Al-Sayer stressed that the Bank's firm commitment to sustainability enhances long-term growth opportunities and supports its position in the local market, indicating that the Bank continues to implement many important initiatives that support responsible business practices and contribute to the sustainable development of the Kuwaiti economy.
The non-performing financing ratio improved to 0.8% compared to 1.1% as at the end of 2022, and the coverage ratio increased to 346% compared to 275% at the end of 2022.
He pointed out that Warba Bank achieved strong revenue growth, continued good operational performance of business and continued to benefit from the advantages of its diversified business mix and strategic investments in talent and technology enjoying the stability of the operating environment in the Kuwait during the first half of 2023. He stressed that the bank's main business sectors achieved good performance in the first half, in addition to registering more momentum in strategic areas that include wealth management, indicating that the bank's performance is based on prudent risk management and high credit quality, as it will benefit from these strengths throughout the fiscal year 2023 to create added value for its shareholders. Al-Sayer added: During the year 2023, we continued to invest in future, and strengthened our digital capabilities to better serve our clients. We also launched innovative products and solutions that will help our customers meet their banking needs more easily.
He continued, saying: “We have a proven track record of sustainable performance and our focus is always on improving operational efficiency and prudently managing capital levels so that we are appropriately prepared for any scenarios in the global economy.
Al-Sayer expected revenue growth to continue at its strong rate, thanks to our solid financial position, strong capitalization rates, and comfortable liquidity levels, which enhance our ability to generate profits. Al-Sayer said, "We are proud of Warba Bank in our contribution to society and the progress we have made in our journey towards strengthening the pillars of sustainability in our operations and our corporate culture through many initiatives." He explained that "Warba" continues to strengthen its position as a major and essential factor in the financial and banking sector in the country, pointing out that the Board of Directors was keen to continuously develop the capabilities of employees by organizing training courses in partnership and cooperation with many leading specialized agencies and institutions at the local and regional levels.
Al-Sayer praised the permanent support that Warba Bank and the Kuwaiti banking sector receive from the Central Bank of Kuwait and the rest of the regulatory authorities in Kuwait, praising the confidence of all shareholders and stakeholders in the Bank’s performance, and the performance of the executive management and all the Bank’s employees and their contribution to providing Warba Bank with the highest levels of service.
The acting CEO of Warba Bank, Anwar Bader Al-Ghaith, said that the profits achieved for the first half of 2023 confirm the success of Warba and the soundness of its approach and operational plans, as the Bank enjoys a strong position that qualifies it to take advantage of the opportunities available in various economic sectors, adding that the Bank continues its efforts in maximizing profitability and return on equity, and maintaining a strong operating performance, especially in light of its strong credit quality.
He added, "The growth in the Bank's financial indicators shows the continuous success in implementing the strategic plan and developing its market shares at the level of all segments of clients, both individuals and companies," pointing out that the strong financial performance recorded by "Warba" during the previous period made it occupy a strong position among local banks in the world in several financial indicators.
He stated that Warba Bank was able to maintain excellent rates with regard to indicators of profitability, return on assets, return on shareholders’ equity, improving asset quality, debt coverage rates from provisions, cost-to-revenue ratios, and all basic financial indicators, adding that Warba Bank is keen to seize opportunities that contribute to achieving sustainable growth, while continuing to contribute to the economic growth of the country, and help ensure the success of Kuwait Vision 2035.
Al-Ghaith pointed out that "Warba" is known for its solid capital base and high liquidity ratios that support the growth of its business and enhance its credit strength, noting that "Warba" continues to implement its strategy to enhance the role of basic banking activity by achieving profitability and sustainable growth and keeping abreast of developments in the fields of digitization, application of artificial intelligence and innovation in financing and investment products and solutions, increasing investment in green sukuk from the total financing portfolio and expanding in linking investments with sustainable development goals, optimal investment in human resources and knowledge enhancement, as well as supporting entrepreneurship and youth, providing innovative banking services to companies, and supporting small and medium enterprises, in a way that enhances the status of "Warba" in the banking sector.
Al-Ghaith referred to the pioneering social contributions that "Warba" is full of, as the Bank contributed to many strategic community initiatives, as well as many environmental and sustainable initiatives, youth support, in addition to many other initiatives, stressing that Warba Bank is aware of the significant role that social responsibility plays in increasing the brand's attractiveness to various stakeholders, including investors, as well as attracting best talents and developing their capabilities, which contributes to the success of the Bank's business in general.
Al-Ghaith expressed his confidence in continuing to achieve strong positive results, praising the trust of shareholders and customers and the support of the Board of Directors. He also praised the role of the regulatory authorities, and the efforts of employees and all partners and stakeholders, stressing moving forward in strengthening Warba Bank's position among banks in the banking sector.
Warba Bank is considered one of the banks that achieved great successes during a short period, as it occupied a leading position in the field of digital banking services, and it is one of the largest local banks in the number of its shareholder base, and these are among the most important factors that make the bank close to all members of society. In addition, Warba Bank is among the 50 largest banks in the Middle East in terms of market value for the year 2023 - Forbes Middle East classification.
