Warba Bank reported a net profit growth of 633 per cent to reach KWD 315,000 for the first half of 2015 compared to KWD 43,000 for the first six months of 2014.
Total income grew by 37 per cent to reach KWD 11.17 million. The strong operating performance was supported by all business units within the bank.
The bank’s balance sheet was further strengthened by strong operating revenue which has increased by 23 per cent to KWD 7.582 million at the end of the first half of 2015 compared to KWD 6.145 million during the same period in 2014.
As at June 30, 2015, Warba Bank’s total assets increased 30 per cent to reach KWD 645 million as a result of the bank’s aggressive geographical expansion strategy in local and regional markets, combined with investments in low-risk and high quality assets.
The bank’s financing portfolio has also showed an impressive growth of 50 per cent to reach KWD 457 million compared to the first half of 2014. This enabled the bank’s default finances ratio to reach 0.24 per cent, which is considered among the lowest in the local banking sector. The bank’s coverage ratio reached 564 per cent at the end of the first half of 2015.
Commenting on the results, Emad A. Al Thaqeb, Chairman, Warba Bank said, “We are pleased to deliver another set of strong financial results. The impressive growth in profits and operational revenues despite a tough competitive environment further validate Warba Bank’s strong balance sheet supported by asset quality, capital and liquidity”
“The bank’s expansion plans combined with introduction of innovative banking propositions provided strong foundation for the record financial performance for the first half of the year.”
Customer deposits have increased 36 per cent reaching KWD 547 million in the first half compares to the same period in 2014 with KWD 402 million. In the past few months, the bank has introduced a series of innovative banking products and services including the Investment Saving Account, Salary Transfer Account in addition to individuals and Shari’ah compliant corporate financing products such as Qard Hasan, Murabaha Express, and Mosawama.
Warba Bank has been committed to the requirements of maintaining good safe investments and credit portfolios and the net financing revenue has increased to KWD 5.5 million compared to KWD 4 million for the same period in 2014, representing a growth of 38 per cent.
In the second quarter of this year, Warba Bank was mandated by Garuda Indonesia, Indonesia’s flag carrier, as Joint Lead Manager and Joint Book Runner for its inaugural international Sukuk issue valued at $500 million. Warba Bank also contributed in leasing aircrafts for Kuwait Airways, in addition to acquiring an auto finance portfolio from Al Mulla International Finance Company KSCC through a deal reaching KWD 20 million which is a part of Warba’s strategy in plans of expansion in the local and regional market.
Al Thaqeb added, “Warba bank is very keen on its solid financial platform and the quality of its assets and it works to seizing investment opportunities that are suitable with low investment risks and can achieve strong returns which will support the future growth of the bank whilst enhancing its competitive ability and increase its share in the Islamic banking market which is witnessing a rapid popularity and strong competition locally and regionally.”
Jassar Al Jassar, Vice Chairman & Chief Executive Officer, Warba Bank said, “We will continue to grow through our investments and successful banking policy which projects positively on performance indicators among the outstanding 50 per cent increase in its financing portfolio reaching KWD 457 million compared to KWD 304 million for the same period in 2014 with a decrease in the default finances which has reached 0.24 per cent. Warba Bank aims at increasing its financing portfolio market share through working continuously towards developing and innovating financing products that are Shari’ah complaint and fulfill the requirement of customers while easing their financial burdens. In addition to the bank making customers feel special with the high privileges credit cards which provide customer a lot of benefits and advanced services.”
Jassar added, “Warba Bank has succeeded in diversifying the sources of income and growing its operational revenue through focusing on the various sectors of the bank including investment, treasury, corporate finance and planning, risk and group operations and group banking and information technology while paying attention to customers and satisfying their needs through the widespread network of branches across all provinces with sophisticated network of ATM machines and developing electronic banking services through the internet and smart devices and paying more attention to the role of the call centers and the development of its performance to ensure the best standards of services for customers in addition to investing in human resources through attracting special national calibers and training them and increasing their ability through specialized advanced training program that is in line with the highest international standard.”
Al-Jassar said, “We will continue, God willing, the implementation of the road map laid out in the new strategy and take advantage of positive growth opportunities in the region despite the falter in some markets as a result of the prevailing security situation, relying on key fundamental pillars to provide outstanding banking service to customers, and to build a high-performance institution, advancing the core business growth to continue playing a leading role and effective in pushing the development and evolution wheel in the Kuwaiti economy and market of Islamic banking specifically that records high demands in emerging markets, and we will work to enhance the share of Warba Bank in the years ahead and securing its status to be at the forefront Islamic banks operating in the region.”
Originally published on www.cpifinancial.net