Boubyan Bank Records Net Profit of KD 56.1 Million for year 2018 At A Growth Rate of 18%
The Board of Directors’ Recommend To Distribute 8 Fils Cash Dividends and 5% Bonus Shares
Al-Fulaij: 2018 Was An Outstanding Year in terms of Profitability and Growth in all the key Financial Indicators. This Highlights Our Successful Strategy In the Local Market
Al-Majed: We Have Successfully Increased Our Market Shares and Excelled In Offering New Products and Services While Increasing the Levels of Customers’ Satisfaction And Continuing To Focus On the Local Market
Boubyan Bank reported a net profit of KD 56.1 million in 2018, at a growth rate of 18% compared to the previous year with an Earnings Per Share of 21.37 fils compared to 17.81 fils for the year 2017. This is a continuation of the pace of profitability growth as well as the growth in various financial indicators of the bank since 2010. The Board further recommended that the General Assembly distribute 8% in cash dividends (8 fils per share) and 5% in bonus shares.
Mr. Mahmoud Al-Fulaij, the Bank’sChairman, congratulated all the customers and the staff of the bank on such remarkable profits made by the bank again in a year which could be added to the recent excellent years of the journey of the bank, which managed to acquire market shares in various segments in a record time.
Mr. Al-Fulaij stated: “By all aspects, 2018 was a special year for Boubyan Bank whether in terms of profitability or the growth of our financial indicators which reflects the success of our strategy that focus on expansion in the Kuwaiti market.”
“With the advent of the new year, we hope to keep up our pace of growth which we have been maintaining over the past years, and to be up to the expectations of our customers and shareholders.”, he added while stating that 2018’s dividends’ distribution has been the highest for shareholders since the bank’s incorporation in 2004, and that this confirms the successes achieved by the bank.
On his part, Mr. Adel Abdul Wahab Al-Majed, the Bank’s Vice-Chairman& Chief Executive Officer, stated: “Despite the challenges from competition, we managed, thanks to Allah Almighty, and thanks to our human resources, to achieve our targets by acquiring market shares in various sectors whether in retail or corporate banking services.”
Mr. Al-Majed stressed that this reflects the level of trust the bank enjoys, whether being shareholders or customers, and that this reflected positively on all of the bank’s financial indicators.
Positive Growth of Key Indicators
Mr. Al-Majed stated that all of the Bank’s main performance indicators witnessed a remarkable growth in 2018, where the total assets increased to KD 4.3 billion at a growth rate of 9% while the operating income increased to reach KD 140 million at a growth rate of 11% in addition to the increase in customers’ deposits by 9%, amounting to KD 3.7 billion.
He further added that the total equity of the bank increased to KD 408 million, in 2018, compared with KD 375 million in 2017 and that there was a notable increase in the financing portfolio to KD 3.3 billion with a growth rate of 13% in addition to the continuous growth of the bank’s customers’ base.
Al-Majed stated as well that the market share, in financing, increased to approximately 8.6% with the Bank’s share in the retail finance increasing to approximately 12%. Besides, the bank recorded outstanding growth rate of 14% in the corporate credit portfolio compared to last year. This was achieved by building relationship with a number of companies known for their financial position and creditworthiness while continuing to maintain the highest standards of credit quality, monitoring and diversifying risks.
The Kuwaiti Market and the Capital Increase
Mr. Al-Majed confirmed that the bank would continue to focus on the local market which has many growth opportunities while stating that the bank obtained CBK’s approval in December 2018 to increase its capital by 15.75% through the rights issuance with a premium of 250 fils per share along with the par value of 100 Fils per share
Development and Mega Projects
During the previous years, Boubyan Bank financed a number of development projects in Kuwait amounting to more than KD 250 million, which were diversified over education, health, roads, bridges in addition to the constructions sector. The bank also financed a large number of projects for companies that are classified and registered with the Central Tenders Committee.
This comes in line with the bank’s financing policy which focuses on selecting vital projects that contribute effectively towards the development of the country.
Last year, Boubyan managed to successfully participate in several financing deals worth USD +700 million locally and regionally. This includes the financing of some reputable financial institutions in addition to entering into deals to finance mega strategic projects.
One of the major project where the bank played a significant role in 2018 was the Duqm Refinery Project in the Sultanate of Oman where the value exceeded USD 4.6 billion. The bank was a part of the Islamic syndicated financing extended to the project in addition to financing Kuwait Integrated Petroleum Industries Company in excess of USD 300 million for the construction of the liquefied natural gas terminal.
Leadership in Technology
On the other hand, Al Majed stressed that the bank would continue opening new branches after reaching 42 branches, and he stated: “In line with our domestic geographic expansion to be closer to our clients, we are continuing our investment in e-services and e-banking products which placed us ahead of other local banks. We are doing that in order to cater for the various needs of our clients.”
Boubyan Bank reiterated its excellence and its ahead-of-the-curve position in digital banking in Kuwait and the Middle East by receiving 4 awards recently from Global Finance. The Bank was named the World’s Best Islamic Digital Bank, the Best Islamic Digital Bank in the Middle East and the Best Islamic Digital Bank in Kuwait in addition to being named the Best Innovative Digital Bank.
The bank was further named the Best Islamic Bank in Kuwait by the Banker, the renowned financial publication, in addition to receiving many other awards including the first place award in Kuwait in customer service from Service Hero, the international consumer-driven customer satisfaction index.
Leadership in Creativity and Innovation
Al-Majed went on to add that this year witnessed the introduction of many services and products which were first introduced to the Kuwaiti market by Boubyan Bank, and that kept Boubyan in its leadership position in an attempt to distinguish its clients and provide them with a unique banking experience.
“One of these services is “Msa3ed” which allows clients to perform transactions on their accounts round the clock in addition to the Digital Murabaha Service which helps complete finance application procedures through smart phones and online banking.”, he added.
Mr. Al-Majed also stated: “For the first time in Kuwait, Boubyan Bank clients can now apply for a credit card at any time through online banking by using their PACI-verified digital signature.”
He also spoke of the cooperation with the government sector where the bank signed a Mutual Cooperation Protocol with Kuwait Credit Bank to activate and offer a group of digital services which would facilitate banking transactions for the clients of Kuwait Credit Bank.
“This year, we have launched a business banking unit for SMEs to give entrepreneurs access to specially designed services and products to help them and their projects grow.”, he added.
CSR and Human Resources
Mr. Al-Majed stated: “Boubyan Bank concluded the past year with an excellent track record with many activities, initiatives, and outstanding social events. This highlights the leadership status Boubyan enjoys in the domain of corporate social responsibility in Kuwait, whether in terms of quality or quantity. The bank is very selective when it comes to setting its targets to highlight the importance of the private sector’s contribution to build and enhance our Kuwaiti society.”
“We seek to create a positive CSR model away from the existing traditional models, and we observe this in the initiatives we take or the segments we target inside or outside Kuwait.”, he added.
He went on to add: “Corporate social responsibility and the implementation of its programs are not only limited to one department, rather, we consider all the bank’s departments and branches to be main players in undertaking our social responsibility roles and in building the society. Our staff are our main partner in serving our society and we undertake our social responsibilities together.”
During last year, the bank organized and sponsored more than 150 activities and events in Kuwait which targeted various segments and sectors in the Kuwaiti society.
“Boubyan Bank gives a special attention to its human resources as part of the bank’s objective of being a developed and modern bank keeping up with international and regional changes through its young management, and the Consumer Banking Group, which comprises mostly of youths, testifies to this. The bank is known for placing the youth in leading roles, and this has further helped Boubyan Bank earn the award for the “Replacement and Nationalization of Manpower in Kuwait”. The award is given on an annual basis by the Council for the Ministers of Labor for the best GCC institution.”, Al-Majed concluded.
Boubyan Bank’s Key Financial Indicators
In KD Million
Growth of the Bank’s Financial Indicators
Over the Past 5 Years
In KD Million