Al Tijari declared Operating Profit of KD 21.7 Million for Q1 2021
Commercial Bank of Kuwait announced operating profit of KD 21.7 million for the first quarter of 2021 compared to KD 21.8 million for the same period last year. Net profit for the period is KD 0.04 million (Q1 2020: KD 0.8 million). Further, current quarter net profit was mainly utilised towards provision for future impairment loss.
Commenting on overall performance of the Bank, Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, stated that despite of challenges faced due to pervasive pandemic, rigorous measures to limit movement, reduced business hours and restricting business to essentials, the Bank was able to maintain its operating profits. The Bank has allocated KD 21.6 million on prudent basis to the provision and will continue its conservative policy of building the loan loss reserves. Building such buffers will help to absorb any shock resulting from the volatile economic situation in the region or any further impact of pandemic. As at 31 March 2021, the Bank’s total provision available reached at KD 198.6 million.
Sheikh Ahmad added that Al Tijari has capitalised on challenges faced by the banking sector and successfully turned them into opportunities for digitalisation of various service channels. The Bank had efficiently and effectively delivered its customer needs through harnessing its digital transformation strategies. Moreover, these well curated digital platforms have enhanced the efficiency of business model that was evident from decreased cost to income ratio, which is one of the lowest in the industry. During the first quarter of the year, we opened a new branch in the Avenues Mall and made plethora of enhancements to our digital platforms and mobile app.
Considering the dynamics of current situation, Sheikh Ahmad elucidates his confidence in the Bank’s digital platforms and business model capabilities to address contemporary customer demands. We believe in inclusive growth along with its customers and always value customer loyalty as cornerstone of Al Tijari success.
Financial highlights of the period ended 31 March 2021 are as follows:
- Cost to income ratio decreased to 30.2% as compared to 34.2% last year. However operating income of KD 31.1 million decreased by 6.5% against same period last year.
- Customer loans and advances at KD 2,268.8 million (31 December 2020: KD 2,279.1 million), marginally decreased by 0.5%, and total assets at KD 4,260.6 million decreased by 2.9%, from 31 December 2020.
- Robust regulatory ratios comfortably exceeded the Central Bank’s statutory requirement, Capital Adequacy Ratio 18.3%, Liquidity Coverage Ratio 185.3%, Net Stable Funding Ratio of 107.6% and Leverage ratio of 11.9%.
Sheikh/ Ahmad welcomed Kuwait Government’s initiative of second moratorium for Kuwaiti individuals and reaffirmed “Al Tijari has always stood strong with Kuwait Government in every step of the relief measures such as a six-month moratorium on Kuwaiti individual loans without charging any additional interest or other fees for the deferral period.
Sheikh/ Ahmad took the opportunity to appreciate all the measures taken by Kuwaiti Government and Central Bank of Kuwait to tackle these pandemic challenges. He further thanks all the front-line workers from across all governmental organizations for their exceptional efforts in combating the pandemic, and all the management and staff of the Bank for their dedication and untiring efforts to serve it’s customers in such an unprecedented situation.