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Warba Bank announced the quarterly financial results for the first nine months of the current year ending on September 30, 2023. These results indicated that the Bank’s net profits amounted to KD 14.324 million, equivalent to 6.21 earnings per share.
The Bank noted in a press statement that that net financing revenues have risen in the first nine months of 2023 to KD 164 million, a growth rate of 86.67% compared to the same period of the previous year. The total operating revenues for the first nine months of 2023 amounted to KD 182 million, a growth rate of 61.52% compared to the same period last year.
The balance of financing receivables in the first nine months rose to KD 3.4 billion, an increase of KD 313 million, an increase of 10% over the end of 2022. Meanwhile, the balance of investment in sukuks for the first nine months of 2023 amounted to KD 351 million, which is an increase of KD 66 million, or 23.3% over the previous year of 2022. The balance of total assets reached KD 4.8 billion at the end of September 2023, and this marks an increase of KD 602 million, or 14.33% over the previous year, 2022.
The balance of depositors’ accounts for the first nine months reached KD 2.8 billion, an increase of KD 104 million, or 3.87% over the year 2022. Shareholders’ equity amounted to KD 305.6 billion at the end of September 2023, an increase of 7 million. The capital adequacy ratio reached 15.7%, exceeding the minimum required by the regulatory authorities, a ratio that confirms the strength of Warba’s financial position.
Hamad Musaed Al-Sayer, Chairman of Warba Bank, commented on the financial results, saying: “Warba Bank has achieved strong financial results in the first nine months of 2023, and our performance reflects our diversified business mix along with the strength and size of our balance sheet. It confirms that we are moving steadily towards providing sustainable and long-term added value to our customers, our communities and our shareholders”. He stressed that these record profits support Warba’s position in the market while also contributing positively towards the enhancement of the capacity and position of the Kuwaiti banking sector in general.
Al-Sayer added that Warba achieved positive growth in all basic financial indicators, and maintained good rates in terms of return on average assets and return on average shareholders’ equity, while improving the quality of assets, rates of coverage of bad debts from provisions, cost-to-revenue ratios, and various financial indicators.
He stated that the record financial results achieved reflect the efforts made by the work teams at Warba. These results are also a reflection of the confidence of shareholders and customers and the efficiency of the strategic directions of the Board of Directors all of which comes within the context of appreciation for the role of the regulatory authorities, and all partners and stakeholders.
He continued: “Our growth strategy and prudent management of both risk and capital, along with our diversified business mix, demonstrate our strength and stability in a challenging global economic environment, noting that "Warba" continues to reap the fruits of its strategic investments, stressing its confidence in the Bank's ability to achieve more successes that meet the growing needs of its clients”.
He also added: “Our commitment to enhancing our clients’ loyalty, community reinvestment, and adopting the highest standards of sustainability strengthens our position as one of the leading banks in the local market and supports long-term growth opportunities. “ He stated that Warba has made great strides in its digital transformation strategy, and that the noticeable growth in the volume of customers’ use of digital banking services confirms the strength and leadership of Warba in providing innovative digital financial solutions that enhance customers’ banking experience and give Warba a competitive advantage.
Al Sayer reported an increase in revenues from key activities, as strong profitability trends continued for both quarterly performance and since the beginning of the current year, explaining that “Warba” succeeded in maintaining very strong trends from an operational standpoint, as revenues grew at levels that exceeded the growth rate of operating expenses. He noted that the Bank's focus is mainly on creating value for its shareholders, as evidenced by the continuous improvement in profitability rates, as the return on average total assets reached 0.42% and the return on average shareholders' equity reached 5.33%.
Al-Sayer pointed out that the Bank continues to implement its core strategic pillars, which focus on diversification and maintaining its market share. It has also maintained a strong competitive position in the local market and succeeded in maintaining its position as the bank of choice, whether for individual clients, high-net-worth individuals, companies, or local and foreign institutions.
He stressed that Warba Bank is looking forward to continuing to invest in technology and digital platforms and expanding their scope, and this will contribute to working more efficiently and growing in various fields to achieve the aspirations of all stakeholders. This is in addition to a strong focus on innovation as a major driver of future growth.
Al-Sayer highlighted that the Bank continues to integrate issues related to environmental, social and institutional governance into the Bank’s business, culture and operations, and plays an effective role in accelerating the pace of continuous improvement of the policies and disclosures issued in relation to environmental, social and institutional governance matters to ensure a more sustainable future.
For his part, Warba Bank’s CEO, Shaheen Hamad Al-Ghanem, said: “We achieved strong profits in the first nine months of 2023, and we maintained the path of our strategy aimed at maximizing the highest returns for our shareholders, in line with our long-term goals, indicating that sentiment towards the operating environment in Kuwait which has been witnessing gradual improvement over the past period.
He added that the Bank's main business sectors continued to build on the strong performance achieved by the Bank at the beginning of this year, pointing out that stability in the operating environment will be a catalyst for better performance during the coming period, noting that the profits for the first nine months reflect the strength of the Bank’s operational performance and confirm the continued growth of our business activities.
He stressed that several factors contributed to enhancing the Bank’s performance during the first nine months of 2023, including benefiting from higher interest rates and improved operational performance, in addition to the strength of the balance sheet, comfortable levels of liquidity, and the solidity of the capital base. Al-Ghanem explained that the Bank also benefited from the stability of the operating environment in general in Kuwait during the first nine months of the year 2023. Meanwhile, inflationary pressures in the United States and some other advanced economies began to recede. Despite the risks of economic recession, there is cautious optimism that the operating environment will remain generally stable.
He pointed out that the Bank’s solid foundations, and our proven track record in providing flexible financial performance in various circumstances, enable us to support our clients with the advice, products and integrated services they need, in addition to enhancing our pioneering digital experiences that distinguish us from our competitors and achieve long-term value for our shareholders.
Al-Ghanem said that the continued growth in business volume and the strong liquidity of the Bank, in addition to the prudent levels of asset quality, are factors that will continue to support profit growth until the end of 2023, in addition to having enabled the Bank to confront the major fluctuations in the global banking industry during the last period.
He continued his statement that the first nine months of the current calendar year witnessed the continued disciplined implementation of the Bank’s strategic priorities and initiatives towards enhancing revenue growth, in addition to achieving strong operational performance, stressing that the Bank continued to achieve major achievements in its digital journey, which supported the deepening of relations with existing clients, and accelerate the growth rates of attracting new clients.
Al-Ghanem expressed his and the Bank’s pride in raising Moody’s global rating from a stable outlook to positive, and also in the progress it has made in the areas of digital innovation, women’s empowerment initiatives, and sustainable development of human resources. He explained that the positive outlook regarding the classification reflects the positive impact of developments in Warba’s business and proves the soundness of its strategic directions. This classification also confirms the successes and achievements achieved by Warba Bank, which is an appreciation for the Islamic banking industry.
He noted that this evaluation gains its importance from the importance of Moody's as an agency with its stature, and secondly because it comes at a time where Warba is on the cusp of a pivotal stage in its development. He stressed Warba Bank's full readiness to face any competition, noting the great potential and diverse capabilities that it possesses. Warba Bank's experience gave it the ability to deal with changes positively while adhering to the Sharia approach and providing services and products at high international standards that keep pace with the ambitions of its clients.
Al-Ghanem further said that the concept of achieving the globalization of the institution does not only mean international expansion, but also subjecting all services, products and activities to international standards and criteria, which qualified Warba Bank to obtain successive international awards and evaluations, praising the ability that Warba Bank demonstrated recently in implementing an unprecedented qualitative investment policy, adding that it depends on employing capabilities, experience and solvency.
Al-Ghanem stressed the continuation of Warba’s pioneering role in social responsibility by supporting various initiatives that add value to society, including health, sports, educational and environmental initiatives, empowering women, supporting youth and students, the category of people with special needs, promoting financial culture, and more. Pointing out that Warba Bank is proud of its young national banking talents, and will continue to excel in training and nationalizing workers and attract talent from graduates in partnership with public and private universities.
Al-Ghanem concluded his statement saying that Warba Bank continued its excellence in developing innovative financial and investment products, services and solutions for clients, while relying on financial technology and artificial intelligence to support operational processes and enhance clients’ banking experience, maintain its position among banks in the Kuwaiti banking sector, and expand market share. He praised Warba's success in expanding its customer base and achieving growth in operating revenues, which was reflected positively in its financial results for the first nine months of 2023.
