Al Tijari Declares Its Highest Ever Net Profit of KD 157.2 Million for 2024. Annual Cash Dividend at 52 Fils per Share and

Commercial Bank of Kuwait announced its highest ever net profit of KD 157.2 million for the year 2024 compared to KD 111.2 million for the year 2023 - higher by 41.4%. Earnings per share for the current year is 87.7 fils (2023: 59.9 fils). Board recommends a cash dividend of 40 fils per share for the second half of 2024, with total cash dividend for the year at 52 fils (including 12 fils distributed interim cash dividend) and 10% bonus shares.

Financial highlights	2024	2023	Change
Net profits attributable to Shareholders of the Bank	157.2	111.2	41.4%
Operating profit before provisions	117.7	117.2	0.5%
Net Interest Income	117.7	113.1	4.1%
Fee and Commission Income	49.7	44.5	11.6%
Total Assets	4,665.9	4,176.0	11.7%
Loans and advances	2,806.9	2,430.0	15.5%

Operational Performance:
Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, is pleased to present Bank’s robust performance with a Net Profit of KD 157.2 million for the year ended 2024, reflecting a strong year-on-year growth of KD 46.0 million (41.4%). Healthy operational performance aided these strong results. Loans witnessed a strong growth of KD 376.9 million (15.5%) benefitting from contribution from all business segments (International, Corporate, Retail, and Treasury). Net interest income grew by 4.1% aided by loan growth and stable margins. Fee and commission income grew by 11.6% due to higher card, trade finance and loan fees. Results also benefitted by recoveries pursuant to a favourable legal verdict. 

Regulatory Ratios:
Regulatory ratios remained strong and continue to be well above the Central Bank’s statutory requirements. Capital Adequacy Ratio is at 19.0%, Liquidity Coverage Ratio 217.7%, Net Stable Funding Ratio 111.4% and Leverage ratio 11.3%.

Performance Ratios:
Sheikh Ahmad emphasised that Al-Tijari continues to report healthy performance ratios relative to its history and this stems from the strategic initiatives taken in the previous years. Return on Equity 22.4% (2023: 16.8%) and Return on Assets 3.6% (2023: 2.6%). Cost to income ratio 34.6% continues to be one of the lowest amongst Kuwaiti banks.

Business updates:

Sheikh Ahmad added that the Bank is equipped with the latest technology and digital services, enabling it to continue offering best in class digital banking services thanks to its digital platforms and advanced technology and systems.

The key business achievements during the year are:

• K-Net launched a new instant payment system “WAMD” for Kuwaiti banks. With WAMD, customers can send and receive money instantly without any charges, 24/7.
• Moody’s ratings upgraded Bank’s long and short-term deposit ratings in addition to upgrading the long-term Counterparty Risk Assessment and long-term Counterparty Risk Ratings. The change was driven by Moody’s decision to upgrade Bank's Baseline Credit Assessment (BCA) and Adjusted BCA.
• The ratings upgrade decision reflects the impact of successful strategy implementation by the Bank, improved asset quality, strong profitability supported by higher margins and sound fee income, strong capitalisation and high reserves to absorb credit losses and significant liquidity buffers.
• Al-Tijari completed Tier 2 bond program post issuance of KD 50 million second tranche bond. Proceeds from bond issuance helped to enhance the Bank’s capacity to finance bigger projects.
• Al-Tijari won the MasterCard Award for the most Distinctive Prepaid Card in Kuwait at the Arab East Business Forum 2024, held in Singapore, which focused on the future of digital payments and artificial intelligence.
• The Brandon Hall Group HCM Excellence Awards was granted to the Commercial Bank of Kuwait in two categories: The GOLD AWARD for Best Learning in the Flow of Work and The BRONZE AWARD for Best Learning Team. The announcement was made during the annual HCM Excellence Awards festival which has taken place in Florida USA.
• This recognition is a testament to the Bank’s commitment to excellence and its continuous efforts to embed learning into every aspect of work and cultivate culture where CBK employees thrive.

Diligent Efforts for Raising Customer Awareness:

On customer awareness front, Al-Tijari continues its support to the “Let’s Be Aware” campaign launched by the Central Bank of Kuwait in cooperation with Kuwait Banks Association to spread banking and financial culture amongst various segments of the society. The Bank also uses its electronic channels and accounts on social media networks to educate customers on the importance of protecting their banking information against fraud attempts.

Sustainability

The key initiatives during the year were:

• Al-Tijari announced its partnership and collaboration with Internal Development Goals Initiative, an open, not-for-profit initiative launched in 2023 and headquartered in Sweden, inspired by the United Nations Sustainable Development Goals. This partnership aims to leverage the comprehensive framework and resources available within the Internal Development Objectives initiative to develop and enhance Al-Tijari's sustainability initiatives.
• Al-Tijari released its 2023 Sustainability Report, highlighting the significant progress made by the Bank within the context of its "2022-2026 Shaping the Future". The report reflects the Bank's commitment to sustainable growth, in line with its strategic plan and Kuwait Vision 2035. Throughout the year, the Bank has organized and launched several innovative campaigns and programs accentuating its key role as a socially responsible banking institution aiming at consolidating sustainability and social responsibility efforts.

Thank You Note

Sheikh Ahmad concluded by extending his sincere gratitude to the Emir of Kuwait Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and the Crown Prince of Kuwait Sheikh Sabah Khalid Al-Hamad Al-Sabah for their vision of a peaceful and progressive Kuwait. Sheikh Ahmad also expressed his appreciation to the Government of Kuwait and Central Bank of Kuwait for their continued support and guidance. Sheikh Ahmad continued by appreciating the Bank’s Shareholders, Executive Management as well as all staff for their dedication.