Warba Bank CEO Shaheen Hamad Al-Ghanim said that the first nine months of this year witnessed a big jump in the bank’s profits, which amounted to 180 percent, due to the increase in investment income and currency conversion profits, in addition to the increase in fees and commissions.
He added in an interview with Al-Arabiya channel, today, Sunday, that the rise in investment revenues came in line with the bank’s plan to diversify its revenues, investments and assets, and it was one of the first Kuwaiti banks that started investment operations in America and Britain, and is now beginning to reap the fruits of this strategy.
Warba Bank announced The company reported achieving KD 9.2 million during the first nine months of this year, ending on September 30, 2021, with a growth rate of 180 percent compared to the same period of the previous year, and earnings per share for the same period amounted to 2.7 fils.
He explained that the reason for the decline in the bank’s profits in the third quarter of this year is that it is necessary to balance growth and hedging, due to the bank’s decision to hedge more and take precautionary provisions exceeding 5 million dinars to strengthen the capital base to meet any future conditions out of a total of 15 million dinars allocations since the beginning of the year. This year, out of a total of 35 million dinars, the total allocations by the end of the first nine months of 2021.
Shaheen Hamad Al-Ghanim pointed out that this contributed to raising the coverage ratio for bad debts to 550%, and the percentage of non-performing finances decreased to 1.15%, which is the lowest percentage in the Kuwaiti market and a record number for the bank to reach for the first time.
The bank’s profits decreased in the third quarter of this year, by 9% to 3.1 million dinars, compared to 3.4 million dinars in the same quarter of last year.
The CEO of Warba Bank stated that the total capital increase of the bank is 83 million Kuwaiti dinars, of which 42 million dinars is an increase of 100 fils and an issuance premium of 95 fils, and the bank is in the process of completing the capital increase after approval by the Central Bank of Kuwait and the Capital Markets Authority, and it will be held on November 3 The General Assembly meeting to approve the increase, and he hopes the procedures will be completed before the end of 2021.
He added that in the year of the capital increase, it is difficult to have cash dividends and it is not expected that distributions will be approved in 2021, because it is difficult to implement the two procedures.
In late September, Warba Bank announced the approval of the Kuwait Capital Markets Authority to increase the bank’s capital by 42.5 million dinars to 200 million dinars, by issuing 425 million new shares.
It is noteworthy that the bank obtained the initial approval of the Central Bank of Kuwait to issue securities within the first additional tranche of capital, with a value of 250 million dollars.