Kuwait Times, Wed, Mar 27, 2024 | Ramadan 17, 1445
Boubyan Bank’s AGM approves distribution of 8% in cash dividends, 6% in bonus shares
Kuwait:
Chairman of Boubyan Bank
Abdulaziz Abdullah Dakheel Al-Shaya, stated: “Boubyan Bank has successfully
concluded its 5-year strategy ‘Boubyan 2023’, launched in 2019 that aimed at
complete and positive transformation of its business operations. The bank has
reaped the fruit of this strategy through accelerated growth across its
financial indicators and market shares, the thing which reflects the robustness
of the bank’s financial position, the sustainability of its profits, and
reinforces the bank’s position as one of the major financial institutions
regionally, and the third largest bank in terms of financing portfolio and total
assets in the Kuwaiti market.”
This statement came during the general assembly meeting of Boubyan Bank for the
financial year ended December 31, 2023, with an attendance exceeding 82 percent.
He emphasized: “With the conclusion of 2023, Boubyan Bank managed to have a
record growth rate of 39 percent, while registering KD 80.4 million in net
profits with an earnings per share of 18.8 fils, and the bank continued its
precautionary approach by allocating KD 31.7 million in provisions. All this was
the fruit of the bank’s successful strategy ‘towards perfection’.”
Al-Shaya pointed out that all of the bank’s key indicators witnessed a
remarkable growth in 2023, where the total combined assets of Boubyan Bank Group
increased to KD 8.4 billion at a growth rate of 7 percent. Moreover, the total
of customers’ deposits grew by 9 percent to reach KD 6.5 billion, while the
financing portfolio grew by 7 percent to reach KD 6.3 billion, and operating
income grew by 8 percent to reach KD 218 million.
“What makes the results of Boubyan more significant are the core business and
profitability practices of the Group, which were significantly reinforced by the
bank in 2023 compared with the last financial year, while improving the NPL
ratio, making it one of the lowest locally.”, he elaborated.
Al-Shaya went on to add: “Boubyan’s strategy was successfully concluded with
continued growth in terms of total assets and deposits, maintaining its position
as the bank with the third largest financing portfolio and total assets in the
Kuwaiti market, while continuing to achieve double digit profitability growth
rates.”
Al-Shaya sincerely thanked the shareholders, investors, and all Boubyan’s
customers for their confidence and loyalty to the bank, and reiterated the
Board’s full and ongoing support to the efforts of the bank’s
highly-professional executive management, which wisely steers the bank towards
achieving the best results, while thanking all the bank’s employees for their
dedication throughout the past year.
Approval of profit
distribution
During the general assembly meeting, it was approved to distribute 8 percent in
cash dividends and 6 percent in bonus shares to eligible shareholders who are
registered with the bank’s registers as at the end of the maturity date of April
24, 2024, and to allocate the same to shareholders on April 25, 2024. The Board
of Directors has been authorized to dispose of the share fractions and amend
this schedule in case the confirmation thereof is not announced at least eight
business days ahead of the maturity date as stipulated and in line with the
provisions of the Law.
Furthermore, the Ordinary General Assembly approved the recommendation of the
Board of Directors to distribute dividends to shareholders at the end of the
financial year or semi-annually, and authorized the Board to execute the
decision of the General Assembly as per the percentages decided by the board.
A year of leadership
and solid performance
On his part, Boubyan Bank’s Vice-Chairman & Group Chief Executive Officer, Adel
Abdul Wahab Al-Majed, stated: “Thanks to Almighty Allah, the past year witnessed
the achievement of goals, milestones, and expansions, regionally and
internationally, thanks to the solid pillars upon which the Group’s vision and
strategy are based. Hence, the bank managed to make its mark in the Islamic
banking industry and to make a franchise that stands out from the competition,
be they Islamic or conventional banks.”
“During Boubyan’s journey, the bank managed - through well-studied steps - to
become a leading franchise despite the fierce competition among the banking
sector’s institutions, thus following a tailored path that reinforces customer
satisfaction levels, leading to receiving a 96 percent customer-satisfaction
score among all Islamic and conventional local banks.
The bank’s market share and its ongoing growth reflect the high levels in
customer service and digital excellence, which are the fruit of the bank’s clear
strategy, professional executive team, and continued investment in our human
resources with special focus on our national cadres”, he added. He elaborated:
“Our sustainable growth was the result of a well-studied approach towards
investing in various business sectors, thus leading to significant growth in our
consumer banking and corporate banking businesses, thanks to our focus on
creativity and innovation, despite the fierce competition in the banking
sector.”
Plans and goals
Al-Majed reiterated: “The bank will follow its unique strategic approach to
maintain solid profitability and ongoing growth, based on its sound management
and status, which qualifies it to benefit from its strong potentials and solid
financial position to help customers benefit from growth opportunities in our
favorite markets.”
“As a part of Boubyan’s vision and in line with the new brand identity refreshed
in 2023, entitled ‘Imagine the possibilities’, we reiterate our commitment to
supporting the state’s development plans through financing projects, for
corporates or retail customers, taking into consideration green financing. We
are also targeting further regional and international expansion, as well as
keeping up with the latest developments in the field of digital banking
solutions and Islamic investments to better serve customers and the society”, he
pointed out.
Governance
Al-Majed stated: “Governance is one of the pillars of the credit decision and
giving an advantage to customers who have sound governance practices in place.
Accordingly, Boubyan has been keen on applying the instructions and guidelines
of CBK in that regard. This has been taken into consideration as well upon
designing the banking applications which include a number of authorities for
various management levels at companies, in addition to providing the possibility
of internal monitoring by the company over the performed transactions in order
to ensure the uninterrupted provision of secure and cutting-edge banking
services.”
“The concept of digital transformation in banking institutions has become
associated to a great extent with the name of Boubyan, as the phrase ‘for the
first time in Kuwait’ has been mostly synonymous with Boubyan Bank’s innovative
services and solutions in Islamic digital banking”, Al-Majed added.
He went on to highlight: “Boubyan Bank’s digital transformation strategy gained
a significant momentum, being a real example for succeeding in being highly
competitive regionally in digital services, and in changing the lives of our
customers through our services and products. Our digital services’ journey is
very exceptional. It has seen us excel and climb to the top of the pyramid amid
tough competition in the market for digital banking services which is growing
rapidly.”
Al-Majed went on to add: “Boubyan offers a group of innovative services,
products, and digital solutions through its retail and corporate Apps. Such
offerings add value to customers and show the bank’s keenness to maintain its
leadership in innovation to ensure supporting its customers, enriching their
banking experience, and making things easier, especially amid the competition
across various business sectors. This reflects the bank’s ongoing approach to
develop the digital infrastructure and to offer the best services in the field
of digital payments.”
In 2023, Boubyan inaugurated a number of new branches, bringing the number to 47
branches across Kuwait, which were fully upgraded and modernized as per the
latest international systems and standards. The branches were well-manned with
competent banking professionals along with all resources that guarantee
customers enjoy a swift, convenient, smooth, and unique banking experience that
keeps pace with the developments of banking services.
Awards and international
ratings
Al-Majed added: “In 2023, Boubyan received more than 20 awards, recognitions,
and international ratings from renowned global institutions across various
domains and business sectors such as digital transformation, corporate banking,
customer service, and customer satisfaction, which reinforced our banking
leadership and emphasized the strength of the strategy the bank has been
adopting since many years locally, regionally, and internationally.”
Furthermore, our ratings from Moody’s, S&P, and Fitch remain stable at A2, A,
and A respectively. As for the ex-government support (or xgs) rating assigned by
Fitch, the introduction of such new criteria communicates Fitch’s view of the
creditworthiness of Boubyan excluding assumptions of extraordinary government
support. Boubyan was assigned the second highest rating in Kuwait as per such
criteria.
Nomo Bank: International
expansion
In 2023, Nomo Bank, the digital bank of the Bank of London and the Middle East
“BLME”, a subsidiary of Boubyan Bank Group, launched unique products and
services that put it on par with top financial institutions, whereby it aspires
to become the Islamic bank of choice for GCC customers in the United Kingdom.
Moreover, Nomo continues to make its mark in the Islamic digital banking sector
through the recent launch of many products such as the multicurrency account,
which allows customers to perform their banking transactions in six different
currencies, enabling them to make payments in local currencies in more than 25
countries spanned across Europe and the Middle East within seconds using Nomo
App, in addition to immediately benefiting from remittance and fund-transfer
services, coupled with the possibility of automatically linking the account with
Nomo Card and Apple Pay.
Nomo managed to position itself as one of the best Sharia-compliant property
finance options in the United Kingdom, as it offers a group of integrated real
estate, finance, and advisory services related to ownership of real estate
properties in the UK market to its customers in Kuwait and the region, through
partnerships with major real estate companies such as Ayan Real Estate,
Blueprint, and Great Portland. Additionally, Nomo inked significant agreements
such as the partnership with Abu Dhabi Commercial Bank “ADCB” and Al-Hilal
Digital Bank to give citizens and residents of the UAE an opportunity to benefit
from the innovative services and solutions by Nomo Bank through ADCB - Nomo and
Al-Hilal Nomo Apps.
Corporate banking
Al-Majed further reiterated: “In 2023, the Corporate Banking Group managed to
make a significant milestone by diversifying and improving a number of products
and services, and it is expected to begin to reap the reward of that as of 2024.
This targeted all companies across various sectors in Kuwait, in an attempt to
offer innovative and edge-cutting banking services, being the traditional
concept limited to financing transactions, thus not only making it as a one-stop
shop for all corporate banking needs, but also extending to provide services to
customers and corporate vendors. Accordingly, this made the bank more inclined
towards focusing on innovation in products and services, in addition to
upgrading the bank’s processes.”
CSR and human resources
Boubyan succeeded to stand out as an excellent role model in CSR and in the
support of sustainability through many events and initiatives that made a clear
mark and emphasized the bank’s social excellence, as well as its ongoing plans,
which were crowned with the “World’s Best Islamic Bank for CSR” by Global
Finance in recognition of the bank’s prominent CSR role in supporting various
segments of the society, which confirms that the bank is on the right track to
reinforce sustainable development inside and outside Kuwait. During the past
year, the bank’s human resources proved themselves to be one of the key pillars
of its continued success, as they embrace and adopt Boubyan’s future vision, the
thing which comes in line with the principle of diverse job roles at the
workplace, which greatly contributes to the introduction of innovative and
creative ideas and deliverables, which significantly increase the bank’s
productivity and profitability.
Thanks & appreciations
Al-Shaya concluded his word during the general assembly meeting: “For myself and
on behalf all the team of Boubyan Bank, I would like to express deepest thanks
and appreciation to His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber
Al-Sabah, may Allah protect him, and HH Sheikh Dr Mohammad Sabah Al-Salem
Al-Sabah, the Prime Minister, for all their efforts towards the development and
growth of our dear country, and to guarantee the stability and security of
everyone who considers this blessed land home.”
He added: “I would also like to express the deepest thanks to all the executives
of the Central Bank of Kuwait, headed by Governor Basel Al-Haroon, who spared no
effort to take the actions deemed appropriate to develop and safeguard the
Kuwaiti banking system. I would also like to express deepest thanks to all the
bank’s esteemed shareholders and customers who have always been the key factor
behind our success by supporting us in overcoming our challenges.
Moreover, I would like to thank all members of the Sharia Supervisory Board at
the bank for their great efforts, and I would like to thank members of the Board
of Directors and the Executive Management, as well as all the bank’s employees
for their cooperation, commitment, and keenness on supporting the bank for the
benefit of the bank and its shareholders.”
Abdulaziz Al-Shaya
•Results reinforce the Group’s key business standards and profitability in 2023
leading to significant growth of our financial results
•The bank’s operational performance reflected positively on our solid financial
position in the region, making us the third largest bank in the Kuwaiti market
in terms of financing portfolio and total assets
Adel Al-Majed
•Boubyan to follow its unique strategic approach to maintain solid profitability
and ongoing growth
•Significant growth in consumer banking and corporate banking is the fruit of
our investment in creativity and innovation