The Banking Executive Magazine - March 2024 Issue

KIB Group KIB GROUP RECORDS 19 KD MILLION PROFITS FOR THE YEAR 2023, 40% UP FROM LAST YEAR The Chairman of Kuwait Interna- tional Bank (KIB) Group, Sheikh Mo- hammed Jarrah Al-Sabah, announced the Bank’s financial re- sults for the year ending on 31 De- cember 2023, highlighting that KIB achieved a net profit attributable to shareholders of KD 19 million, mark- ing a 40% increase over the last year, with earnings per share (EPS) of 10.28 fils. Meanwhile, total operat- ing income increased by 16% over 2022, reaching approximately KD73 million in 2023. Commenting on the latest financial results of KIB, Al-Jarrah confirmed the steadiness of its sustainable growth trajectory, which reflects the strength of its financial position, the success of its strategy implementa- tion, and the flexibility of its business model to enhance its status as one of the leading banks in the State of Kuwait. Throughout the year, the Bank continued to innovate and offer new banking products and services in response to its customers’ needs, providing them with exclusive bene- fits and digital solutions that are in line with their modern lifestyles. As for the financial performance dur- ing 2023, the financing revenues wit- nessed a 51% growth, amounting to KD172 million, in comparison to ap- proximately KD114 million that was achieved in the previous year. Invest- ment income also recorded a 13% growth amounting to KD6 million, in comparison to approximately KD5 million that was recorded in the pre- vious year. He further noted KIB’s continued ef- forts towards improving its asset quality metrics. The total assets amounted to KD3.62 billion while the Bank’s financing portfolio reached KD2.49 billion. Investment portfolio grew to reach approxi- mately KD363 million by 31 Decem- ber 2023, supported by increase of investments in high-quality Sukuk. Al-Jarrah added: "KIB has a strong fi- nancial standing as well as a solid and stable capital base, which con- tributes to supporting its efforts to meet the growing needs of its cus- tomers, alongside achieving the best returns for its shareholders," confirm- ing the Bank's commitment to ex- panding the scope of its financing and investment activities, on the local, regional, and international lev- els, through participation in syndi- cated financing deals, among others, in cooperation with its customers across various sectors. Regarding dividends’ distribution among the shareholders, Al-Jarrah stated that KIB’s Board of Directors proposed cash dividends of 5 fils per share, in addition to 3% as bonus shares from the issued and paid-up capital, subject to the approvals of the Bank’s shareholders’ general as- sembly and competent regulatory authorities. He also referred to KIB's strategy of relying on adopting a flexible opera- tional model and an approach that keeps pace with the continuous de- velopments in the banking sector and adapts to its changes, indicating that the Bank's main business sectors performed well during 2023 and recorded further momentum in oper- ational performance. He confirmed the Bank's continued investment in technological infrastructure and the enhancement of its digital services in line with its digital transformation strategy, thereby maintaining its lead- ership and competitive position in the banking sector. Commenting on the financial results of 2023, Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer of the Group, said: “The growth in KIB's profitability coin- cides with strengthening the Bank's financial position, in addition to the comprehensive and sound hedging policies for risk management and the reliable and proven approach to cri- sis management.” In his statement, Bukhamseen noted the increase in the net financing in- come by 21% to reach KD53 mil- lion, in comparison with the approximate KD44 million that was achieved in the previous year. De- positors’ accounts exceeded KD2 bil- lion as of 31 December 2023. Meanwhile, shareholders’ equity grew by 31% to reach KD333 mil- lion as of 31 December 2023. He further noted that KIB maintained ad- equate levels of Basel III, and the total capital adequacy ratio stood at 19.78%. Bukhamseen added: "The year 2023 witnessed the successful increase in KIB’s share capital, in line with the Bank's adoption of a digital transfor- the BANKING EXECUTIVE 20 ISSUE 183 MARCH 2024