Al-Ahli Bank of Kuwait (ABK) reported a 15 percent increase in net profits to 11.645 million Kuwaiti dinars ($38.84 million) for the six-month period, which ended June 30, 2003. This compares to the KD10.132 million net profit reported for the same period of 2002.
ABK has also reported 15 percent increase in earnings per share, compared to the same period last year. Commenting on the bank's financial results, ABK Chairman Ahmed Yousuf Behbehani stated "This consistent growth in profits, for the third consecutive year, reflects our strategy to diversify revenues, effectively manage risks, and the launching of new products and services designed to meet our customers' needs."
Behbehani added that in recognition of the bank's positive trends, the international rating agency, Moody's has upgraded the Bank's Financial Strength and Deposit ratings, while in March 2003, Capital Intelligence also upgraded the Bank's Financial Strength rating.
"We have managed to reduce our operational and credit risks to a large extent having developed a strong risk management culture and with the implementation of a new credit policy and procedures manual, as well as improving the quality of banking services offered to our customers," Behbehani said.
There has been strong loan demand in corporate banking due to the acquisition of several new high quality clients and increased demand from existing customers, according to a bank release. They have also been active in supporting a number of large projects and for supply contracts related to the reconstruction of Iraq.
This substantial increase in new credit facilities combined with continuing reductions in non-performing loans and an impressive growth in documentary business have all combined to make Corporate Banking the largest contributor to the increased profits of the Bank.
With the continued strong demand for credit facilities related to infrastructure projects in Kuwait, contracts related to the reconstruction of Iraq and general business expansion in the country, the corporate business is expected to continue the strong performance in the first half for the remainder of the year.
The Bank has had improved results from their Dubai branch by focusing on business between Kuwait and the United Arab Emirates (UAE) and regional trade business. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
