Al Houti:
- KD 2.720 total assets and 18% growth in the operating income to reach KD 26.882 million
- KD 1.931 billion as total of the bank's financing portfolio; customers’ deposit and financial institutions increased to KD2.388 billion, a growth rate of 37%.
- The Bank has succeeded in building a work model according to the highest and best international standards based on continuous competition.
- H1 financial results are promising, positive and call for optimism of stable growth based on firm foundations that achieve our objectives.
- We are committed to providing the necessary funding for all development projects, in light of the capital expenditure rates of the government.
Al-Ghanim:
- The financing market share of Warba Bank increased by 4.75% to reach KD 1.931 billion, of which 18% was for individuals and 82% for companies
- The Bank's non-performing debt ratio is 1.4%, lower than the average of Kuwait's banks of 1.6%.
- The budget of "Warba Bank" has many positive indicators that highlight the solid financial situation and sustainable balanced growth.
- We contribute to the consolidation of the concepts of innovation and creativity and reduce the effort and time spent in obtaining the service and product.
- While contributing to our profitability Warba Bank products and services, , are part of our social responsibility.
- Our participation in the issuance of sukuk domestically and externally confirms the role of Warba Bank as an important source of finance and trust.
- Warba Bank's banking technology has gained momentum since the beginning of the second quarter, resulting in a digital factory called "Al Wateen".
- The new application pumps around the clock digital banking services and products that will move the industry to a new era of development and innovation. "
Warba Bank announced a net profit for the first half of the year 2019 amounting to KD 6.500 million equivalent to 2.69 fils per share compared to 5.198 million dinars equivalent to 2.54 fils per share in the first half of 2018, a growth rate of 25% while net financing income amounted to KD 19,407 million, a growth of 20% compared to the same period in 2018, which amounted to KD16.196 million. Total revenues amounted to KD 55.078 million, a growth of 37% compared to the same period of the previous year amounting KD 40.073 million. Net operating income recorded KD 26.882 million, an increase of 18% compared to the same period of 2018 amounting to KD 22.837 million. The Bank’s financing portfolio grew by 39% until June 30 to reach KD 1.931 billion, while the total assets of the bank increased to KD 2.720 billion, an increase of KD 773 million by 40% compared to the same period last year, which amounted to KD 1.947 billion; deposits of customers and financial institutions increased to KD 2.388 billion, an increase of KD 651 million with 37% growth over the same period in 2018.
Commenting on the Bank's results, Chairman Abduwahab Abdullah Al-Houti said : "Warba Bank's achievement of these record results is a continuation of the Bank's strong performance, which reflects the success of its strategy set by the Board of Directors and perfectly executed by the executive management. The profits were consistent with the plans and programs developed, and are appropriate to the economic developments and the movement of the markets, confirming the feasibility of the decisions and arrangements, the most important of which is to focus on the Bank's main banking activity, deepen professional practices, implementing international banking systems, with full commitment and comprehensive controls.
Al-Houti affirmed that the financial results are promising, for a stable growth based on solid foundations that achieve Warba's objectives of sustainable growth and provide its shareholders and customers with profitability where they reflects the development of performance and high operating rates, rationalization of spending and prioritization, pointing out that "Warba Bank" was able to achieve a positive performance for the third year in a row, despite the challenges of the operating environment in which it works.
Al-Houti said that Warba Bank has successfully built a business model, in line with the highest international standards for banking, based on continuous competition in an ever-evolving environment, integrating innovative solutions, operational banking technology, and launching digital transformation initiatives,. He explained that Warba Bank offers its banking services to individual customers and companies to develop, manage their business efficiently, maximize its leadership, and expand market share through the best quality standards in business performance and service delivery.
Al-Houti advised that the operating environment in Kuwait is constantly improving thanks to the huge support it receives from the increased government investment spending in the framework of the continued implementation of the development plan, in addition to the solidity of the financial situation, which is based on solid foundations of financial reserves, to protect the Kuwaiti economy from slowing global growth rates or any sharp changes in oil prices.
Al-Houti pointed out that Warba Bank is committed to providing the necessary financing for all development projects, in light of the governmental capital expenditure rates of and accelerating pace of projects’ execution. The Bank seeks to maintain its position as the first option to finance governmental and private projects out of its commitment to provide all needed support to the economic development plan and the vision of "Kuwait 2035
Shaheen Hamad Al Ghanim, Chief Executive Officer, said: "We are very proud of Warba Bank which continues delivering strong performance that reflects the Bank's record financial results for the first half of 2019, which reflect the Bank’s strong fundamentals and wise based on diversifying services and products that the Bank offers its customers relying on this on its strategy of digital transformation, which will enable the bank to prepare well for a new generation of digital banking services.
Al-Ghanim explained that the market share of financing in general increased to about 4.75%. whereas Warba’s share in retail financing increased from 3.24% to 3.25% in addition to achieving remarkable growth rates in the corporate credit portfolio which reached 5.85% by attracting many operating companies known for its financial and economic integrity, while firmly adhering to the highest standards of credit quality, risk study and diversification. He pointed out that Warba Bank holds KD 3 million as precautionary provisions, and the ratio of non-performing loans is 1.4% of the total debt, which is less than the average of Kuwait's banks of 1.6% and that the bank's debts are covered by 154%.
Al Ghanim continued: “Customer service is a solid concept and part of the culture of the bank because it is known that everyone has the same product and service, but excellence and creativity are in service and how they are handled with customers, especially in Kuwait, where customers' expectations are high. When we look at the products and services of Warba Bank, although they contribute naturally to our profitability, it is also important, that they take part of our social responsibility, because we first contribute to establishing the concepts of innovation and creativity and reducing the effort and time spent in obtaining service and product”.
Al-Ghanim stressed that the Bank's budget has many positive indicators highlighting the solidity of the financial situation and balanced growth, particularly in the operating income of the banking sector which has become a major share of the budget, in addition to the profitability indicators calculated on an annual basis, Which reflects Warba Bank's improved performance in spite of the difficulties in the operational environment. Warba Bank has continued its conservative investment policy and risk management effectively, maintaining asset quality according to best practice in this area”.
Al-Ghanim affirmed that the banking technology has gained momentum in Warba Bank since the beginning of the second quarter of this year, which resulted in the development of new services and programs. Warba has successfully established and launched its digital factory under the name of Al-Wateen, which will be our creative pulse in customizing new services that shall move the industry into a new era of development and innovation
Al-Ghanim further elaborated that Al-Wateen is the outcome of achievements the Bank has made over the past years by heavily investing in its digital banking services, which is fundamental to keep up with the modern lifestyle and guarantee customers’ satisfaction. “We are committed to implement our development strategy which is based on positioning us as a leading entity in digital banking services and increasing our market share in this framework”.
Regarding Warba expansion’s plan in the upcoming period, Al-Ghanim stressed that the Bank's current direction is to contribute to financing mega economic projects in the local and foreign markets, pointing out that it is an important strategy in its work to support development’s efforts. He said that in the second half of 2019, Warba Bank will continue to finance Kuwaiti companies and help them develop their business, implement their expansion plans, while according small and medium enterprises more importance, and look for viable investment opportunities in the markets.
Since the beginning of the year, Warba has stepped up its portfolio of financing activities, which include, in addition to the business sector, a new vital sector represented in the medical sector in treatment institutions abroad in cooperation with Souq Safar, one of Bodai Aviation Group subsidiaries, where customers can obtain therapeutic funding according to two mechanisms, the first by depositing the value of the treatment in the form of Al Sunbula Deposit account for a period of time with a return of up to 3% and provides the client the opportunity to enter and win one of the weekly and quarterly Sunbula withdrawals throughout the deposit period. Or by requesting Warba to finance the treatment – that might reach up to KD 25,000- with no profit rate added and a flexible repayment period of up to five years.
As well Warba added to its leading financing portfolio a new partnership with “Bina’a.Com” enabling customers to request a personal financing for the purchase of construction materials via Warba App in an easy manner.
Social responsibility program has also a vital importance to Warba Bank; on annual basis, the Bank hosts Quran competition for employee’s kids who would be awarded at the end of it with valuable prizes to encourage them to further memorize verses of the holly Quran.
Al-Ghanim pointed out that Warba Bank was awarded the Elite Quality Recognition 2018 award, for the quality of operations in both categories after achieving high ratios in the direct operations (STP) of 99.0% in the MT103 and 99.7% in the MT202 classification in recognition to the Bank’s accomplishment of the first sukuk issuance (Shaheen SPV) and the Transnational Year Deal Award to lead Warba Bank in the $ 91 million syndicated financing arrangement of Byrne Equipment Rental LLC.
He added that the Bank is proud of its record of awards and accolades, especially as they come from regional and international institutions that are recognized for their neutrality and confidence in their choices based on the figures, financial results and market achievements.
Al-Ghanim stressed that such global estimates at Warba Bank add a greater responsibility to maintain the level of service we offer to customers, stressing that creativity: “Innovation and customer service are the Bank's path to maintaining its success”.
As well the Bank was awarded “Elite Quality Recognition 2018” award by GP Morgan Chase. Another 2 awards received from IFN , which are: “Structured Finance Deal of the Year” for completion of the first sukuk transaction related to financing aviation sector; “Cross Border Deal of the Year” for leading a syndicated financing arrangement of Byrne Equipment Rental LLC with the value of $ 91 million.
