Boubyan Bank announces a net profit of KD 6.9 million for the period till September 2011; growing by 53% compared to last year

Boubyan Bank’s announced results for the first 9 months of this year (till the end of Q3) showed a net profit of KD 6.9 million compared to a net profit of KD 4.5 million for the same period of last year; growing by 53%, with KD 2.5 million recorded in the Q3.

Chairman of Boubyan Bank, Ibrahim Al-Qadhi, said in a press release today the growth in the Bank’s net profits reflects the rise in operating profits by 17% to reach KD 21.6 million, while it continues to take general and precautionary provisions to reinforce its financial position.

 “The noticeable positive indicators include the increase in net finance income to KD 29.3 million for the first 9 months of this year compared to KD 21.9 million for the same period of 2010; growing by 34% , in addition to the increase in customers’ deposits to KD 1,143 million compared to KD 907 million by the end of September 2010; growing by 26%”, he added.

These positive results realized by the Bank are driven by a set of factors mainly including starting the implementation of the Bank’s new strategy and the strong entry to the Islamic banking services market, both retail and corporate, in addition to the presence of the NBK as a major shareholder in the Bank’s capital by more than 47%.

On his part, the Vice-Chairman & MD, Adel Abdul-Wahab Al-Majed mentioned that the Bank’s total assets as by the end of September 2011 amounted to KD 1,494 million compared to KD 1,245 million as by the end of September 2010, boosting up by 20%.

In addition, he stated that the Bank’s total equity increased to KD 240 million compared to KD 236 million; boosting the Bank’s Capital Adequacy Ratio to 24.9% against 12%, being the minimum required ratio stipulated by the Central Bank of Kuwait.

Al-Majed stressed that the evident growth in all the Bank’s main indicators during the past period of this year is a fresh proof of its sound directions and successful strategic plans for expansion in the Kuwaiti market; as also reflected on its market share of deposits which rose from 3.2% by the end of December 2010 to 3.7% by the end of August 2011.

He also pointed out that among the positive indicators as well is the rise in finance portfolio to KD 960 million by the end of September 2011 compared to KD 779 million by the end of September of last year; growing by 23%, in addition to the continuous rise in client base.