Emad Al Thaqeb, Chairman – Warba Bank, announced that Warba Bank has realized operating revenues of KD 10.3 million for the year 2013 compared with KD 8.1 million in 2012, with an increase of 27%. He added that despite the challenges posed by the local and global economic conditions as well as the fierce competition among local banks, Warba’s business indicators show a remarkable improvement in the bank’s performance and the operating efficiency of assets.
As the realized operating revenues increased, exclusive of non-recurring transactions resulting from sale of investments, at 75% (KD 10.3 million for the year 2013 compared with KD 5.9 million in 2012).
Bank’s total assets grew by 81% as at the end of 2013, reaching KD 405.5 million compared with KD 223 million as at the end of 2012, while the financing portfolio increased to KD 218 million compared with 82.9 million as at the end of 2012, a growth of 163%. It is important to refer to the portfolio’s quality which is evident through the lower percentage of defaulting finances, which is 0.30%. Meanwhile, the provisions made by the bank to cover the defaulting finances reached 479% as at the end of 2013.
Customers’ deposits reached KD 246.8 million as at end of December 2013 (compared with KD 78.2 million as at the end of December 2012), a growth of 216%.
In addition, Warba has a storing financial position and quality assets, which is evident through the bank’s end of year Capital Adequacy Ratio of 47.54%. Thus, Warba has a potential for future growth and new investment opportunities that would achieve optimum returns to the shareholders and depositors. However, this will require more time to materialize, given the current economic conditions as the global market in general and the local one in particular experience scarcity of new reasonable-risk investment opportunities. On the local level, the second half of 2013 witnessed the launch of certain developmental projects, but the need arises for more developmental spending in the future so as to benefit the local macroeconomic.
Al Thaqeb pointed out that the positive indicators include revenues from financing and deposits, which reached KD 8.2 million compared with KD 3.2 million in 2012, a growth of 156%. Although the fact that the bank’s loss reached KD 3.7 million compared with KD 1.9 million in 2012, with an increase of KD 1.8 million attributable to the general and precautionary provisions made at the request of the regulatory bodies and not to cover a specific defaulting finances, Warba managed to control the operating expenses, whereas the increase in operating expenses reached 8% only despite the bank’s expansions and new branches, and the remarkable increase of businesses during the year 2013. This is expected to increase the income generating portfolio to the extent that covers the bank’s main expenses so that the bank would start generating profits in the near future.
With respect to its plans for 2014, Warba will remain focused on fulfilling the needs of its customers, developing and expanding its customer base, and taking new opportunities to achieve growth in both corporate and retail sectors, while maintaining a robust financial position that safeguards the bank’s shareholders. In addition, the bank will continue recruiting, training and developing talented national cadres in different sectors, as they will provide a great support for the bank in the future in order to achieve the bank’s ambitious goals in this field. Based on its belief in the importance of the human element, especially the Kuwaiti one, Warba is committed from the very beginning to support the national workforce and provide tangible contributions to the ongoing development of distinguished professional cadres in Kuwait. It is noteworthy that Warba exceeded the Kuwaitization level of 60%, while certain sectors in the bank, like corporate and retail, achieved a Kuwaitization level of more than 80%.
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