 |
||||||||||||||||||
|
|
 |
||||||||||||||||
Outstanding Performance of ABK KD76 Million Net Profits for 2007
Redeem your Skyward miles against gift vouchers
Al Ahli Bank of Kuwait reported another strong financial performance in a tough competition and challenging banking industry. The bank profits amounted to KD 76 million for 2007, compared to 60 million during 2006, representing a 27% increase in net profits. Earning per Share aalso improved by 27% from 60 fils to 76 fils. The ROA was increased from 2.78% to 2.82% and ROE was increased from 23.87% to 26.12%.
In view of these excellent results, the Board has recommended a distribution of cash dividend at 45% of the nominal value of the share (45 Fils per share) and bonus shares at 9% (nine shares per one hundred shares).
Commenting on the Bank's strong financial results, the Chairman of the Board, Mr. Ahmed Yousuf Behbehani said:
"ABK achieved outstanding results across all business areas, making 2007 the most successful year in the history of ABK. Profitability of the Bank was also supported through automation of several systems and procedures that will continue to add substantial savings in the years to come. The prudent control over expenses, successful application of a well-defined strategy and effective tools for risk managements and compliance contributed to our success. The delivery of innovative customer oriented banking services and financial solutions, and continual investment in technology and human resources are also important factors in improving our performance.
"As regards the credit rating of ABK, Mr. Behbehani pointed out that Al Ahli Bank's intrinsic strength, capacity and potential has been recognized by all leading international external rating agencies and Al Ahli Bank is now one of the highest rated banks in the region. It holds an 'A1' long-term foreign currency deposit rating from Moody's Investors Service and A- rating from Fitch Ratings, BBB+ rating from Standard & Poor's and A-from Capital Intelligence." Added Behbehani.
About Ahli Capital
When asked about Ahli Capital, Mr. Behbehani said:
"Ahli Capital commenced operations in 2007. The discretionary portfolio business generated in 2007 achieved excellent returns on investment and going forward increased attention will be focused on portfolio management and advisory services, as well as concentrating on expanding the customer base."
Expansion plans
During 2007 the Bank opened new branches in Kuwait and there are plans to expand operations both locally and regionally. Our Dubai branch continued to performed well during 2007. Focus was placed on enhancing systems, operations and controls to be on par with those of head office in order to further grow this business in the coming year.
ABK staff
Throughout the year ABK concentrated on hiring and training qualified staff. Our people are an important resource and the attraction and retention of the best talent in the market is necessary to continue to deliver outstanding performance. Key HR initiatives were introduced in 2007 to assist the Bank in becoming more performance based, linking compensation and reward to achievements.
40th anniversary
About the 40th year anniversary, Mr. Behbehani pointed out that:
"Our success over the past 40 years, and particularly this year, could not have been achieved without the combined efforts of our Board of Directors, our management team and dedicated staff, our shareholders and you are valued customers". Together, we will continue to make ABK stronger than ever".
Corporate governance
ABK continues to support its business operations. In 2007 a new Compliance Unit was established to ensure that the Bank complies with all the rules and instructions of CBK and other authorities. The bank follows the best practices of corporate governance, which are essential to the business and protecting the shareholder's interests.
Corporate social responsibility
About the social responsibility, Mr. Behbehani stated that ABK's service to the community includes support for over fifty organizations, benefiting a wide range of needs and activities. In 2007, ABK continued its support and donations to many organizations such as, The Kuwait Association for the Care of Children in Hospital (KACCH) and The Kuwait Blind Association. Several schools received donations, as did programs benefiting youth sports, education and cultural understanding.
