KIB Group announces net profit of KD 6 million (74% increase) for Q1 of 2024
Raed Jawad Bukhamseen, KIB Vice Chairman and CEO
Kuwait, 4 May 2024: Sheikh Mohammed Jarrah Al-Sabah, Chairman of Kuwait International Bank (KIB) Group, announced the financial results for the first quarter of 2024. The Bank achieved net profit attributable to shareholders amounting to KD 6 million which grew by 74% compared to KD 3.5 million. Earnings per share (EPS) was 3.82 fils compared to 3.06 fils for the first quarter of 2023. Total operating income was almost KD 21 million, which grew 23% compared to the first quarter of 2023.
Commenting on the latest financial results, Al-Jarrah said: “The results from the first quarter of 2024 reflect the Bank’s stable financial standing and its consistent approach to sustainable growth. The flexibility and adaptability of the executive team and all staff have enabled the implementation of our growth strategies and plans. These are based on the innovation of new digital products, services, and solutions that meet customers’ needs and ensure a distinct banking experience.”
Regarding the Bank’s interim financial statements for the first quarter of 2024, Al-Jarrah noted that the financing portfolio reached KD 2.44 billion as at 31 March 2024. In terms of KIB’s investment securities portfolio, Al-Jarrah revealed that the portfolio, which included primarily high quality Sukuk, grew by KD 80.7 million, reaching almost KD 386 million by the end of Q1 2024, compared to KD 305.3 million during Q1 2023.
Al-Jarrah highlighted that KIB’s depositors’ accounts reached KD 2.08 billion as of 31 March 2024, while the shareholders’ equity totaled KD 333.2 million.
On a related note, Al-Jarrah mentioned that “KIB continues to reap the benefits of its strategic investments in technology infrastructure and the development of its human resources. These investments have directly improved the quality of service provided to customers,” adding that “The Bank is focused on expanding its operations and sustaining growth across all sectors, while looking to seize the best favorable opportunities.”
From his side, Raed Jawad Bukhamseen, Vice Chairman and CEO of KIB, said: “We are pleased to announce these positive results for the first quarter of 2024. This achievement is a testament to KIB’s success in implementing the best practices in responsible banking and risk management, and in providing high-quality financial services that meet the aspirations and growing needs of our customers.”
Furthermore, Bukhamseen underlined that KIB recently issued an Additional Tier 1 (AT1) Sukuk that received high demand from investors, resulting in an oversubscription of over two times. He said: “The issuance concluded by setting a new benchmark for the tightest spread ever achieved on an AT1 Sukuk globally with 195 bps spread over US Treasuries. This transaction stands as a testament to the confidence of local and international investors in the robust Kuwaiti banking sector in general and KIB’s operational performance and forward-looking strategy in particular.” The USD 300 million AT1 perpetual Sukuk, classified under Tier 1 capital as per Basel III and CBK guidelines at an annual profit rate of 6.625%, will be made available for trading in the secondary market and will be listed on the London Stock Exchange.
As for the Bank’s geographical expansion, Bukhamseen noted that KIB opened its new branch in the Sabah Al-Salem area during the first quarter of 2024, which features a modern, innovative design and advanced technical specifications that align with the Bank’s new digital transformation strategy. This expansion is part of KIB’s ongoing efforts to enhance its customers’ banking experience and to be closer to them wherever they are.
On a different note, Bukhamseen discussed the Bank recently hosting its inaugural real estate forum. This initiative is rooted in the Bank’s more than 50 years of experience. Furthermore, the Bank signed a memorandum of understanding (MoU) with Kuwait University – College of Administrative Sciences, to contribute to student training and enhancing educational curricula in the field of real estate through practical studies, in addition to organizing workshops and training.
Even more, KIB launched several significant initiatives in the first quarter of 2024 that reinforced its role as a leader in community development, as part of its comprehensive social responsibility program, Bukhamseen said. Notably, the Bank successfully hosted the second season of KIB | The Stadium, Kuwait’s first and premier professional sports championship, which took place from January 26 to February 17. This year, the event particularly highlighted equestrian sports, expanding the venue to approximately four times its size from the previous year.
Bukhamseen also affirmed that the Bank continues its support of the ‘Let’s Be Aware’ banking awareness campaign, for the fourth consecutive year. Launched by the Central Bank of Kuwait in collaboration with the Kuwait Banking Association, this initiative aims to advance the goals of its community program and to promote banking and financial literacy across all societal segments.
In their concluding remarks, Al-Jarrah and Bukhamseen commended the Central Bank of Kuwait for its exceptional regulatory and supervisory roles, as well as its consistent support. They also expressed their gratitude to the Capital Markets Authority for its supportive role in fostering an attractive and competitive investment environment in Kuwait. In addition, they praised the tireless efforts of all KIB teams, highlighting their contributions to achieving these results. They expressed their profound appreciation to the Board of Directors and Executive Management for their ongoing support and wise guidance, which have been crucial in enhancing KIB’s financial standing and meeting all environmental, social, and corporate governance requirements.
Provided by SyndiGate Media Inc. (Syndigate.info).