Search
Clear
Search
Warba Bank announced its financial results for the three-month period ending on March 31, 2023, as the results showed that the Bank achieved net profits amounting to KD 4.293 million, equivalent to 2.08 fils earnings per share.
The Bank said in a press statement that the total assets as at the end of March 2023 grew by 9.3% to reach KD 4.592 billion, compared to KD 4.201 billion at the end of 2022, while the total financing portfolio amounted to KD 3.302 million, compared to KD 3.130 million as of December 31, 2022. The total accounts of depositors amounted to KD 2.785 billion at the end of the first quarter of this year 2023, compared to KD 2.674 billion as at the end of December 2022. Total operating revenues for the first quarter amounted to KD 55.7 million, with a growth rate of 70%, compared to the same period last year.
The balance of investment in sukuk for the first quarter of 2023 amounted to KD 315.6 million, an increase of KD 30.7 million, or 11% from the end of the previous year 2022. The total shareholders' equity amounted to KD 299.2 million at the end of March 2023. The capital adequacy ratio reached 16.1%, exceeding the minimum required by the regulatory authorities, a ratio that confirms the solid financial position of "Warba".
Commenting on the Bank's quarterly financial results, Chairman of the Board at Warba Bank Hamad M. Al-Sayer said during the first quarter of 2023, we recorded strong quarterly earnings and continued to build on the operating momentum we recorded during the past year, to continue achieving another quarter of strong earnings driven by continued growth across all of our business segments. Al-Sayer added that Warba Bank's performance is based on strong risk management and excellent credit quality, as the non-performing financing ratio improved to 0.9% compared to 1.1% at the end of 2022, and the coverage ratio increased to 317% compared to 275% at the end of 2022. In addition, financing provisions drop to 0.2% in March 2023 compared to 0.8% at the end of the first quarter of 2022.
The Bank's investments in talent and technology also support achieving stronger revenue growth, improving the efficiency of "Warba" operations, and maximizing returns for its shareholders. Al-Sayer stressed that the Bank witnessed good growth in deposits and financing portfolio, stressing that the Bank recorded strong performance in the strategic pillars that included banking services in addition to wealth management.
He pointed out that the continuous improvement in the operating environment will be reflected on the growth of the corporate financing rate, while the Bank’s fee and commission revenues have increased, benefiting from the strong relationships that the Bank has established with its clients over many years. Al-Sayer added that the Bank continues to make further progress in its strategic plans and agenda towards digital transformation and in its technological projects, the latest of which was the launch of Warba Digital World within the augmented reality technology, which was well received by the participants, in addition to what Warba Bank offers of an integrated package of advanced products and services to meet the requirements of the youth segment.
He stressed that "Warba" enters the second quarter of this year 2023, with stronger momentum thanks to its strong financial position that enables it to achieve added and long-term value for its clients, shareholders and employees.
Al-Sayer stressed that "Warba" will continue in 2023 to invest heavily in its employees and work to unleash their potential for additional dimensions, and focus on its approach based on providing the best products and services that its clients need in the midst of this changing world, while accelerating its commitments aimed at achieving strategic growth for a sustainable future.
He noted that Warba Bank prioritizes attracting and employing distinguished national talents, providing them with all elements of success, and paving the way for developing their abilities and skills. "Warba" presents the ideal model in this field, and is keen to support and promote national employment, and its prominent role in supporting the development process in the country, which comes within the process of developing human capital at the top of its priorities and success factors, pointing out that the recruitment and development of Kuwaiti youth is a continuous strategy in "Warba", strengthened by growth opportunities and its large market share, which requires providing national manpower and the preparation of successive generations capable of continuing to achieve the foundations of banking success.
Al-Sayer expressed his conviction that the current stage in the banking process is the most important and sensitive since the inception of banks, due to the large scale of challenges associated with it, the most important of which is that the opportunity for banking services in its traditional concept of structuring and delivery is diminishing, pointing out that "Warba"'s strategy in adopting digital performance and modern technology is based on following the latest developments in the world in this field, extrapolating the latest and most important aspirations of clients, and then creating services and products that are appropriate to their needs. Thus, technical development contributes to the improvement of products, the quality of service, the addition of new innovative dimensions, and the reduction of expenses.
For his part, Chief Executive Officer of Warba Bank Shaheen Hamad Al-Ghanem said that Warba Bank achieved strong financial results in the first quarter of this year 2023, thanks to the flexibility of its diversified business model, and its prudent management of both risks and capital, in addition to strategic investments in technology and in preparing and attracting the best talents, stressing that efforts are focused on maintaining the growth of the profit rate, the return on credit, and other financial indicators, applying the best banking practices, and fully adhering to the regulatory and Sharia controls and instructions, and the determinants of optimal operation, while continuing to improve the standard of operational efficiency, and benefiting from modern developments, most notably new digital financial technologies, and reliable administrative and organizational plans, especially those concerned with enhancing employee efficiency, innovation, operational quality and customer care, achieving the interest of shareholders and depositors, and developing their investment returns in a manner that enhances their trust in "Warba".
Al-Ghanem said that thanks to the disciplined implementation of our strategy, we are steadily moving towards implementing our digital agenda and launching more products and services that enhance our strong position in the Kuwaiti banking sector.
He continued, saying: "The Bank's strategy has led to continuous improvement in the growth of budget numbers, strengthening the quality of assets, and enhancing the capital position," explaining that Warba Bank continues to invest intensively in its innovative banking offers and the development of its employees to ensure sustainable and profitable growth.
Al-Ghanem stated that by focusing on clients-centric products, partnerships and strategic initiatives, we are strengthening our core business, and ensuring that we stand on solid foundations to take advantage of available opportunities and develop them in the future. Al-Ghanem expressed his pride in the inclusion of Warba Bank in the list of the 50 largest banks in the Middle East in terms of market value for the year 2023 from Forbes magazine, which is truly a strong testimony confirming the Bank's great position in the Kuwaiti banking sector.
Al-Ghanem explained that, during the first quarter of this year 2023, Warba Bank implemented many initiatives to simplify and enhance its services and raise customer satisfaction levels.
Al-Ghanem stressed that social responsibility is deeply rooted in the operational spirit of Warba Bank, as the Bank always cooperates with non-profit institutions, government agencies, and groups interested in community service to make a positive impact in all areas in which it operates. The Bank provided its support and sponsorship for many sports and entertainment events during the first quarter of this year 2023. Al-Ghanem stated that Warba Bank continues its support for the comprehensive banking awareness campaign "Let's Be Aware" at the initiative of the Central Bank of Kuwait and the Kuwait Banking Association, and uses all its channels to promote financial awareness to highlight the rights and duties of clients and how to protect themselves with regard to dealing with banking products and services.
