Boubyan Bank announces a net profit of KD 4.4 million for the first half of 2011

Al-Qadhi: Operating profits reached KD 14.6 million

Al-Majed: Growth of our market share of deposits, finance and client base reflects our successful strategy

Boubyan Bank announced its results for the first half of 2011 which show a net profit of KD 4.4 million compared to a net profit of KD 3 million for the first half of last year at a growth rate of 46% with KD 2.3 million recorded in the second quarter.

Chairman of Boubyan Bank, Mr. Ibrahim Al-Qadhi, said in a press release today that the results represent the Bank’s operating profits net of general and precautionary provisions totaling KD 8.6 million made to reinforce the Bank’s financial position.

Al-Qadhi added that realization of such profits is a continuation of the Bank’s successful strategy and regaining profitability which started last year indicating that among the noticeable positive indicators are the increase in net finance income to KD 18.7 million for the first half of 2011 compared to KD 13.6 million for the first half of 2010; recording a growth rate of 38%, in addition to the increase in clients’ deposits to KD 1,091 million compared to KD 820 million at the end of June 2010; recording a growth rate of 33%.

Vice-Chairman & Managing Director, Mr. Adel Abdul-Wahhab Al-Majed said that the Bank’s total assets as of the first half of 2011 amounted to KD 1,445 million compared to KD 1,166 million for the same period last year, a growth rate of 24%.

In addition, he stated that the Bank’s total equity increased to KD 238 million compared to KD 235 million at the end June 2010, and hence, the Bank’s Capital Adequacy Ratio grew to 26% against 12%, being the minimum required ratio stipulated by the Central Bank of Kuwait.

Al-Majed stressed that the growth in all the Bank’s main indicators during the first half of the present year proves once again its sound direction and the success of its strategic plans for expansion in the Kuwaiti market. This was also reflected by its increased market share of deposits, which rose from 2.7% at the end of May 2010 to 3.6% at the end of May 2011.

He further added that among the positive indicators as well is the growth in the finance portfolio to KD 920 million at the end of June 2011 compared to KD 711 million at the end of June of last year; recording a growth rate of 29%, in addition to the continuous rise in the Bank’s client base.