Al Tijari declared Net Profit of KD 73.6 million for the year 2022, Board recommends cash dividend 25 fils per share


Al Tijari announced a net profit of KD 73.6 million for the year 2022 compared to KD 54.6 million for the year 2021. Further, earning per share for the current period is 37.2 fils with recommendation of 25 fils per share dividend.

Financial highlights

  2022   2021 Change

Net profits attributable to Shareholder of the Bank (KD Million)

   73.6    54.6  34.7%

Operating Income before provision (KD Million)

  102.8    81.3  26.4%

Fee and Commission Income (KD Million)

   42.8    38.9  10.0%

Net gain in dealing in foreign currency (KD Million)

   8.0    6.4  25.0%

Customer Loans and advances (KD Million)

2,419.5 2,278.1  6.2%

Total Assets (KD Billion)

   4.3    4.3     -

The Bank's regulatory ratios displayed impressive results, surpassing the Central Bank's minimum requirements. The Capital Adequacy Ratio was 17.8%, Liquidity Coverage Ratio was 249.7%, Net Stable Funding Ratio was 109.1%, and Leverage ratio was 11.4%. The non-performing loan percentage remained at zero for the fifth year in a row.  These ratios reflect the Bank's strong position and provide a robust capital and liquidity buffer to support potential loan growth aligned with the Bank's strategic plan.

Sheikh/ Ahmad Duaij Al Sabah Bank’s Chairman started his comments  on the financial results by saying: “the Bank’s net profit of KD 73.6 million is the highest ever during the last ten years, and the recommended distribution of 25 fils cash dividends to shareholders is also the highest during this period”.  He further added that the growth in net profit by KD 19.0 million (year 2022: KD 73.6 million vs. year 2021: KD 54.6 million) was mainly because of improved business scenarios which is evident from 10% increase in fee and commission income, 25% growth in FX income, increase in loans and advances and rising interest rate environment has boosted the net interest income for the year 2022. Sheikh/ Ahmad further emphasised that the bank has prudently allocated KD 30.1 million provision charge against other receivable as part of managements’ conservative approach.

Sheikh/ Ahmad also commented that the Bank continues to focuses on asset quality, diversification, digitalization, operational efficiency, cyber security and data protection. As always, the Bank’s first priority investment is on customer service enhancements and employee training and development in order to sustain legacy title of “Bank of choice”.  

Business update
Sheikh/ Ahmad mentioned that, during the year, increase in FX income was mainly from rising interest rate scenarios resulted in favourable KD/USD spot rates trading opportunity which the Bank has successfully monetized.

The increase in fee and commission income was mainly due to unfunded facility to an international client for importing oil from Kuwait. This is expected to continue and create similar opportunities in the future. Al-Tijari – acting as the lead arranger and bookrunner for arranging conventional trade finance tranche for signing syndicated facility contract amounting $292 Million in favour of Septco International Petroleum Company in participation with a group of banks. The financing package has been completed and, all contracts and the financing documentation concluded. The consortium aimed at financing the contract for the construction of Jurassic Production Facility No. 4 in North Kuwait “JPF-4” awarded by the Kuwait Oil Company to Septco International.

On the retail business front, Al-Tijari has opened two new branches, equipped with the latest technology and digital services, one located in the heart of Kuwait city at Fahad Al Salem Street and the other in Saad Al-Abdullah to meet customers’ needs.

Digital Enhancements, Innovation and Customer Solution
Sheikh/ Ahmad stated that the Bank is continuing its swift progress in digitalization, particularly in terms of digital payment innovation. Additionally, the integration of the PACI digital signature into the account opening system is expected to further improve the process. The Bank has also established a comprehensive Digital Payments Ecosystem, providing customers with a variety of options for conducting transactions, including wallets, Apple Pay, Samsung Pay, cardless cash withdrawals, QR codes, and other services that enhance the overall customers banking experience.

Sheikh Ahmad further added that the newly launched “Business Islands” are currently available in most of Al-Tijari branches and has been enhanced with additional features to facilitate the customer journey through providing seamless services at one station (“Business Island”). Customers can log into the machines using their Al-Tijari’s mobile application registered biometric facial recognition to access any of the banking products/services. Al-Tijari prioritizes being customer-oriented and launched new services to improve their banking experience, such as virtual debit and pre-paid cards, a chatbot "T-bot" on WhatsApp and T-Lockers available 24/7. The Bank also provided innovative solution to customers in need of funds by allowing them to withdraw accrued interest anytime during the life of fixed deposits.

The Corporate Internet Banking has been enhanced whereby corporate customers’ can now avail new services through the application, whereby a temporary facility is given to them by overdrawing the account when processing fund transfers, salary payment and transfers through Swift.

GO Green
Sheikh Ahmad underlined that GO Green is an area where the Bank has been working on through various initiatives and projects - to create a “culture of conservation” and natural resource stewardship within its community.

GO Green Sustainable Finance: an area where the Bank is proactively pursuing through its financing and investment activities - to encourage and support a “green” business that uses sustainable materials to make its products with lower usage of water, energy and raw materials as well as cutting carbon emissions, or utilizing these materials in renewable and eco-friendly ways.

GO Green Initiatives: launched by the Bank and to name few; firstly maximising the utilization of QR Codes wherever possible to encourage paperless approach within the Bank, Secondly the adoption of energy saving tactics within the premises and, thirdly enhanced the recycling and re-usage efforts through education among staff as well as usage of environmentally friendly products. Further, he stated that the Bank has

provided several Go Green loans to Corporate and international customers. The Bank will continue to fund for projects of national and environmental importance.

Society and social responsibility

Al-Tijari showed a strong commitment to social responsibility throughout the year. The Bank celebrated National Holidays with construction workers through its "Hawen Alaihum" Campaign and recognized the significance of old Kuwaiti neighborhoods with its "Ya Zeen Turathna" initiative. The Bank continues to have a tailored –made social program to celebrate and share the various occasions with various segments of society with an overarching goal of deepening the principles of the Bank's corporate social responsibility by means of innovative societal initiatives and activities.

As part of its Corporate Social Responsibility, the Bank supported the "Diraya - Let's Be Aware" Campaign launched by the Central Bank of Kuwait and Kuwait Banking Association and used its electronic channels to educate customers on protecting their banking information from fraud.

Thank You Note
Sheikh/ Ahmad concluded by congratulating all on the advent of the Holy Month Of Ramadan and by appreciating the  Central Bank  of Kuwait, Capital Markets Authority for their supervision on the banking and financial sector and to the shareholders, Board Members, Management and employees for their efforts, support and dedication.