Al Tijari declared Net Profit of KD 40.8 million for the nine month of 2021

Nature

Commercial Bank of Kuwait announced net profit of KD 40.8 million for the nine months ended 30 September 2021 as compared KD 17.1 million for the same period last year, notable hike in net profit by KD 23.7 million during current period.
 
Highlighting on overall performance of the Bank, Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, commented that even though the socio-economic aspects are improving amidst of pervasive pandemic, the Bank will continue to embrace conservative approach of building provision cushion for any unexpected losses. Persistent on conservative approach, Al Tijari has allocated KD 25.8 million additional precautionary provision during the current period, total precautionary provision buffer as of 30 September 2021 is now KD 131.4 million representing 5.8% of the total loan portfolio. Having adequate buffer enables the Bank to accommodate any further unforeseen losses and to explore new business opportunities.


On business updates, Sheikh Ahmad expressed that ease in travel restrictions, energy crisis-led increase in oil price, and rigorous inoculation by government, has contributed growth in business. There has been considerable growth in fees and commission income, and forex income during the period. Moreover we hope that coming quarters would be further brighter than what it had been since pandemic struck in 2020.


Revealing updates on the Bank’s digital initiatives, Sheikh Ahmad reflected that Al Tijari has always benchmarked its digitisation strategic business plans with best industry practises.  In pandemic era, the Bank has witnessed the exponential growth in users of the Bank’s digital products/services which affirmed that and that the digital banking services have already become the future of the banking industry. Furthermore, tremendous banking transactions were processed by the customers through CBK Mobile Application and online are evidence that our strategy has successfully paid off.


 Financial highlights

 Nine months 2021  

 Nine months 2020

 Change %  

 Net profits (KD Million)

 40.8  17.1  138.6%

 Operating profits (KD Million)

 66.1  68.9  -4.1%

 Fee and Commission Income (KD Million)

 28.8  26.7  7.9%

 Foreign Exchange Income (KD Million)

 4.7  4.3  9.3%

 Customer Loans and advances (KD Billion)

 2.2  2.3  -4.3%

 Total Assets (KD Billion)

 4.2  4.5  -6.7%

 Cost to Income Ratio (%)

 30.6  28.8  1.8%


Robust regulatory ratios comfortably exceeded the Central Bank’s statutory requirement, Capital Adequacy Ratio 18.6% against regulatory requirement of 11.0%. The available capital buffer is the core strength of the Bank and will be utilized responsibly to expand our loan portfolio in line with our growth strategy. Similarly, Liquidity Coverage Ratio 151.1%, Net Stable Funding Ratio of 104.3%, Leverage ratio of 12.1%, all are well above the statutory minimum requirements which would be deploy for quality assets expansion.


As part of our Corporate Social Responsibility, the Bank welcomed The ‘Let’s Be Aware’ “Diraya” Campaign’ launched by Central Bank of Kuwait and Kuwait Banking Association. The Bank has been spreading awareness messages among its employees, customers’, citizens, and residents through its website, mobile App, branches, social media platforms and Frequently Asked Questions (FAQs) sections in all of the online portal.


Sheikh Ahmad, in his closing remarks, appreciated all the efforts by Kuwaiti Governmental organisation which helped in combatting this pandemic, the regulatory authorities represented by the Central Bank of Kuwait for its continuous support to the banking sector, the Bank’s Executive Management and all staff for their dedication and rigorous efforts for customer service.