• Net profits increased by 455% to Become KD 2.523M
• Total revenues increased by 57% to become KD 26.311M
• Total assets increased by 63% to reach KD 1.498B
• Customers' and financial institutions' deposits increased by 61% to reach KD 1.314B
Al-Houti: "We have achieved a qualitative leap in the investment portfolio of Warba Bank, and we still continue to lead the local sector."
Al-Ghanem: "Warba Bank's successes in the first half of the year pave the way for strong results by the end of the year. We continue to inject the necessary investments to develop exclusive banking solutions and digital services."
By the grace of Allah, Warba Bank has announced that it has achieved remarkable financial results for the first half of 2017, reflected by its net profits which increased by 455% so as to reach KD 2.523M compared to KD 0.455M for the same period of the previous year. The increase in the Bank's total revenues was driven by strong performance of all business units. Its overall revenues reached KD 26.311M with an increase of 57% compared to the first half of 2016. Moreover, its operating revenues increased by 66% and amounted to KD 16.815M at the end of the first half of 2017 compared to KD 10.109M for the same period of 2016.
The total assets of the Bank increased due to its strategy of expansion in the local and regional markets and investments in high quality and low-risk assets with a value of KD 1.498B. Its financing portfolio witnessed a remarkable growth as it became KD 1.132B with an increase of 68% over the first half of 2016. As a result of the quality of the financing portfolio, the Bank's faltering funding Non-performing facilities is 0.56% - a percentage that is considered to be one of the lowest ratios in the domestic banking sector. The Bank's coverage ratio of provisions for funding faltering Non-performing facilities was 288% at the end of the first half of the year.
Commenting on the Bank's results for the first half of 2017, its Chairman of the Board, Mr. Abdulwahhab Abdullah Al-Houti said, "Thanks to Allah's Guidance, in the first half of 2017, Warba Bank achieved outstanding results and laid the foundation stone for the Bank's drive to establish itself as a leader in Islamic corporate and investment banking services in Kuwait, as well as providing advanced digital services to individuals. Since the beginning of the year, the Bank has also expanded its investment base in promising emerging regional and international markets, enhancing its investment portfolio. That has provided a basis for investors' confidence in its performance.
Al-Houti affirmed that Warba Bank continues to innovate services and products that establish a developed era in the Islamic banking sector and also increases the spread of its branches in line with the ambition and requirements of its customers. He pointed out that the Warba Bank is expanding its investment plans internationally, especially following its achievements in the first half in this respect. The Bank is currently studying investment opportunities in Kuwait and abroad which, Al-Houti assures, will enhance the Bank' investment portfolio and provide profitable returns to investors. Al-Houti also pointed out that all indicators promise high-quality performance of the Bank at all levels and departments.
Warba Bank's CEO, Mr. Shaheen Hamad Al-Ghanem, said that the Bank has made pioneering achievements in the finance and investment sector in the first half of 2017 in Kuwait and regional and international markets, confirming its position as an Islamic bank that offers regular and rewarding investment opportunities for investors. Al-Ghanem pointed out that this development follows the terms of its strategy to create unique investment opportunities for customers and to create exclusive financing solutions. It also aims to support the corporate and investment sector.
Steady Growth in Regional and Global Investment Portfolio
Mr. Al-Ghanem also said that the first half of 2017 witnessed the Bank's achievements in creating investment opportunities that provide viable and regular returns to investors. The first achievement was its peerless success in marketing its Sukuk issued at the beginning of the year with a value of USD 250M, and could cover the subscription 5 times more than the issued Sukuk in the amount of USD 1.3B. Therefore, its Sukuk were listed on both NASDAQ Dubai and the Irish Stock Exchange.
The Bank also had a successful participation in arranging the issuance of USD-400M Sukuk by the Dubai-based, real estate development company Meraas Holding Company. Warba Bank participated in the deal with USD 50M.
In the same context, the Bank participated in a Shari'ah-compliant, joint, multi-currency, financial deal of USD 236M for the Ziraat Participation Bank of Turkey. In partnership with a range of other banks, Warba Bank acted as the Lead Arranger and Subscription Manager of the deal.
In addition, the bank has entered into a real estate investment partnership with Bentall Kennedy company of the USA, one of the world's largest real estate consultancy firms, under which the latter acts as a delegated real estate adviser and a partner investor in the bank's commercial real estate property investments in the united states. the flagship of that new partnership is Warba bank's acquisition of the headquarters of ManpowerGroup, which is a 280,000-sqm office building in Milwaukee city, State of Wisconsin.
In addition, in the first half of 2017, Warba Bank acquired of a modern vehicle import and export establishment in the UK for GBP 9M. The said establishment is rented by KIA Motors under an irrevocable, long-term lease ending on 2037 AD. Moreover, Warba Bank has signed a renewable agreement with Al-Mulla International Finance Company (AMIFC) whereby the Bank will increase the amount of acquiring financing portfolios from AMIFC so as to reach KD 50M.
A Pioneering Institution in Digital Development
As a result of the rapid development witnessed by the digital structure of the Bank, it enhanced its website www.WarbaBank.com making it more interactive, user-friendly. This makes the website the first destination for customers and helps them to complete their transactions online extremely easily.
Mr.Al-Ghanem also pointed out that the services available on the website fall under the name of 'Express', including:
• 'Fatoura Express', which allows the customer to pay their mobile phone bills on a certain date and in a certain amount they set in advance.
• Customers can open an Express Account in five minutes only.
• Moreover, the Bank provides an Express service for making quick payments.
• The Bank also provides 'Al-Mustafeed Express' service, which allows the customer to add a Warba Bank beneficiary by entering their mobile number through Warba Online or by using Warba App for smartphones.
• Customers can also open online accounts such as Al-Sunbulah Account and deposits.
• Among the Bank's online services are Express Update and Express Chat.
• Moreover, 'Cheques Express' service enables the customer to request a cheque book and choose the branch that they want to get it from.
• 'Express Share' service allows customers to send a transfer request to anyone to enable them to send a transfer request to anyone to enable them to pay using a link sent to their cell phone through an SMS.
• 'Eidiyah Express' service allows customers to request and receive their Eidiyah [Money Treat in Feasts] from any branch of their choice.
• To achieve more digital advances, the Bank has recently launched a WhatsApp mobile service to enable customers to communicate directly with the Bank employees, as well as Apple Watch service which enables customers to follow up digital banking through digital watches.
Mr. Al-Ghanem added that the Bank has recently launched the Visa Signature Credit Card within the Bank's strategy to provide customized banking solutions that offer exceptional, and exclusive benefits and rewards. In addition, the Bank launched a marketing campaign for its Al-Safwa Customers holding its Credit Card under the title: Jeep Cheap! The campaign offers Al-Safwa customers a package of features that culminates in entering a draw where they can win a Toyota Land Cruiser. The Bank also continues its salary transfer campaign launched earlier this year, which is in line with its strategy to provide an integrated system of Islamic products that meet its customers' expectations. It has also enhanced Al-Sunbulah Account by increasing the number of monthly winners to 13 offering prizes up to KD 30,000.
Ramadan Campaign Inspires Society
As part of the Warba Bank's social activity during the first half of this year, Al-Ghanem stressed that the Bank's social responsibility campaign during the holy month of Ramadan has generated positive reactions among the Kuwaiti society community and a great deal of interaction from the entire community. Based on the slogan How wonderful man is!, the campaign included many direct events in the Bank's booth at the 360 Mall. It featured influential figures who have overcome hardships to make achievements and succeeded in spreading inspiration among the young people in Kuwait. The campaign also included a TV ad of the Bank based on the same principle. The ad was a hit on websites. Furthermore, the Bank has exerted efforts to spread inspiration and to support young people through social media channels through video recordings of Kuwaiti innovators and creative minds who struggled to reach their goals.
A Promising Development Translated into Quality Awards
Warba Bank's efforts in corporate and investment sector embodied by introducing innovative Islamic banking solutions were rewarded by winning two prestigious awards from Banker Middle East magazine: "Best Corporate Bank in Kuwait" and "Best Investment Bank in Kuwait" for 2017. These awards are the result of the Bank's pursuit of a development strategy in the corporate and investment sectors and a result of its recent achievements in this regard.
Al-Ghanem concluded: "The first half of this year witnessed a growing development in Warba Bank's performance at various levels, especially in the investment and banking solutions sector. We promise that this achievement will have been doubled by the end of the year thanks to the confidence our investors put in us and our team's restless efforts to do their best to bring the Bank to the forefront.