Al Ahli Bank of Kuwait records 3rd quarter profits

ABK has also reported 31% increase in Earnings per Share compared to the same period of last year.

Commenting on the Bank's strong financial results, ABK's Chairman, Mr. Ahmed Yousuf Behbehani stated "This consistent growth in profits, for the third consecutive year, reflects our strategy to diversify revenues, effectively manage risks, and the launching of new products & services designed to meet our customers' needs."

Commenting further on the bank's financial performance, Mr. Behbehani said that in recognition of the bank's positive trends, the international rating agency, Moody's has upgraded the Bank's Financial Strength and Deposit ratings, while in March 2003, Capital Intelligence also upgraded the Bank's Financial Strength rating.

He added "we have managed to reduce our operational and credit risks to a large extent having developed a strong risk management culture and with the implementation of a new credit policy and procedures manual, as well as improving the quality of banking services offered to our customers that were met by more satisfaction."

There has been strong demand of Credit Lines and Loans s in Corporate Banking due to the acquisition of several new high quality clients and increased demand from existing customers. They have also been active in supporting a number of large projects and for supply contracts related to the reconstruction of Iraq.

This substantial increase in new credit facilities combined with continuing reductions in non-performing loans and an impressive growth in documentary business have all combined to make Corporate Banking achieving its targets in all its sectors.

With the continued strong demand for credit facilities related to infrastructure projects in Kuwait, contracts related to the reconstruction of Iraq trade, Industrial, Housing and Real-estate businesses' expansion in the country, the corporate business is expected to continue its strong performance for the remainder of the year.

Mr. Behbahani added " In implementation of the strategic plan 2002-2004, which had among its priorities, the issue of launching new and innovative Banking and investment products in the market, the Bank has successfully introduced three services during the third quarter of the current year, each meets the need of specific segment of the Kuwaiti Community."

The Retail Banking Division has launched two new products, namely Flexible and guaranteed Fixed Deposits: The first was launched to the customer's segment that prefers a fixed monthly income and the other was launched to the segment that primarily prefers a guaranteed and high interest rates.

The Treasury and Investment Division has launched AL Ahli Gulf Fund for the customer's Segment ( individuals & Companies) that prefers to invest in GCC Stock Exchanges to realize above the "market average" return within an acceptable level of investment risk

Mr. Behbehani emphasized that Al Ahli Bank, by launching these products, is aiming to meet the needs of customers from all segments and improving the communication giving customers the liberty to choose from wide range of products and services.

Mr. Behbehani added: "With regard to the marketing promotion campaigns, The demand for Al Ahli cards, Visa and MasterCard, is still strong and increasing. The bank has indeed launched a successful campaign under "You deserve it" slogan that will continue till mid December 2003, with exciting and valuable prizes, among which a Porsche Carrera, 2003 model."

Mr. Behbehani added "With regard to the customers service, the bank is pursuing all possible efforts, through its network of branches, to achieve the main objective of the bank, that is to provide the best banking services to the customers, concentrating on the quality of the service and putting the "Customer first" motto into practice."

Mr. Behbehani added "We also focused on our branch in Dubai to provide a better quality of services to the bank customers and finance their commercial activities between the State of Kuwait and the State of the United Arab Emirates and the Arabian Gulf region in general."

"Regarding the Kuwaitization policy, Mr. Behbehani indicated that the bank continues to support the recruitment of national cadres in all the banking and administrative divisions of the bank, and providing training to the new Kuwaiti graduates, conducting comprehensive training programs for them and preparing them for occupying the top-level posts at the bank.

Mr. Behbehani concluded his statement by saying: "We believe that we have strong reasons for looking to the future with confidence and optimism. We are clearly focusing on our strategic goals to achieve our aims which include broadening our customers base, issuing innovative banking products and investment services, improving the level of performance, expanding our network of branches, in addition to the tight control of expenses and strong risk-management.