Al Tijari declared Net Profit of KD 54.6 million for the year 2021

Commercial Bank of Kuwait announced net profit of KD 54.6 million for the year 2021 and earnings per share of 27.8fils with recommendation of 20fils per share dividend (2020: Nil). Notable hike in net profit by KD 54.6 million during current year was mainly attributed to lower provision charge than last year.

 Financial highlights:   2021     2020     Change %  

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

  54.6     -     100%

 Operating profits before provision (KD Million)

  81.3   91.5     -11.1%

 Fee and Commission Income (KD Million)

  38.9   37.0       5.0%

 Net gain in dealing of foreign currency (KD Million)

   6.4    6.4          -

 Customer Loans and advances (KD Billion)

   2.3    2.3          -

 Total Assets (KD Billion)

   4.3    4.4      -2.3%

Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, is delighted with the Bank’s performance despite having challenging year. He further said that though ease in travel restrictions, energy crisis-led increase in oil price and rigorous inoculation by the Kuwaiti government have revived growth in business; however it has long road before it reaches pre-pandemic level. As per recent developments around the globe, pandemic is still lurking around the corner with new variants which may cast shadow on easing governmental-led-initiatives and life going back to normal. Thus, the Bank will continue to embrace conservative approach of building provision cushion for any unexpected losses. Consequently, Al Tijari has allocated KD 45.8 million additional precautionary provision during the current year, total precautionary provision buffer as of 31 December 2021 is now KD 151.4 million representing 6.6% of the total loan portfolio. Having adequate buffer enables the Bank to accommodate any further unforeseen losses and to e
xplore new business opportunities. It is worth mentioning that the Bank is continuing to maintain the Zero non- performing loans (NPL) for the fourth consecutive year.

Robust regulatory ratios comfortably exceeded the Central Bank’s statutory requirement, Capital Adequacy Ratio 19.0% 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 130.8%, Net Stable Funding Ratio 104.2% and Leverage ratio 12.2%, all are well above the Central Bank’s statutory requirements.

Al- Tijari...…My Choice
On business updates, Sheikh Ahmad mentioned that, during the year, Al-Tijari has succeeded in financing new projects worth about KD 480 Million. The Bank also directly financed a new PPP (Public-Private Partnership) project sponsored by Public Authority of Housing Welfare (PAHW). Further, the Bank has been one of the lead managers for a syndicated loan related to oil field production facility for an expected project value of around USD 398 Million.

On retail business updates, a new branch has been added to the branches network, providing digital experience for our customers at the Avenues mall. Also, Al-Tijari is proud to be the first bank in Kuwait to launch the latest wearable payment solution, SwatchPAY!, using NFC technology. The Unique Multicurrency Prepaid Card was introduced to customers providing the ability to have 10 currencies in one card to choose from the Bank’s mobile app and online banking, making it easier and safer for online shoppers, travellers and our abroad students to buy currencies and benefit from secured exchange rates.

Al-Tijari........My year of achievement
Complementing on the Bank’s digital initiatives, Sheikh Ahmad highlighted that 2021 was focused on enhancing and upgrading Al-Tijari service to provide the latest technologies. At the same time, ensuring that the customers are served conveniently using their mobile and CBK Mobile APP  which includes new features like; Family Banking Feature, where guardians now can view and control their minor relative account, Issuance of New Prepaid and E-GOV card, Increase in the Type of Accounts to the mobile App on-boarding (including Najma Account, Savings Account, Salary Account, and YOU Account), Issue IBAN certificate, Chequebook request service, Paperless KYC update for customers and much more.

In collaboration with PACI (Public Authority for Civil Information), Al-Tijari has provided the services for its customers like; Civil ID update through Kuwait Mobile ID, Customer verification on Kiosk or Self-service through Kuwait Mobile ID by QR scanning, and added PACI Kiosk in 5 branches to activate customers’ digital signature etc.

Al-Tijari......My Kuwait, My Home
Sheikh Ahmad also pointed out that as part of Al-Tijari’s philanthropic & humanitarian activities intended for social sustainable development of Kuwaiti Society, the Bank has continued “The Double Your Reward” Campaign which aims at boosting social solidarity through the Bank’s donation of an amount equal matching with donor customer in favor of charitable societies & organizations. Sheikh Ahmad added that the Bank has participated in many initiatives like “The Go Green” approach encouraging our people to have the least impact on the environment and to rationalize water and energy consumption. The Bank also sponsored voluntary activities that aimed at cleaning beaches and the desert. The Bank supported the Environmental Awareness Campaign “Camping & Planting" for greening up Kuwait spring Camps. The Bank’s support aimed at encouraging and motivating people and campers to preserve environment ecosystem and wildlife during the Camping Season. The Bank also organized a Blood Donation Campaign for its employees at Kuwait Blood Bank Headquarters.

As part of our Corporate Social Responsibility, the Bank supported 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 customers and the public by posting banking and financial information, tips and warning messages against fraud through its website, mobile App, branches, social media platforms and Frequently Asked Questions (FAQs) sections in all of the online portal.

Sheikh Ahmad concluded with the deep appreciation and recognition of all the efforts by Kuwaiti Governmental organisation which are tirelessly working to combat 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.