ABK reports 15 percent increase in profit for first half 2003

ABK has also reported 15 percent 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."

There has been strong loan demand 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 the largest contributor to the increased profits of the Bank.

With the continued strong demand for credit facilities related to infrastructure projects in Kuwait, contracts related to the reconstruction of Iraq and general business expansion in the country, the corporate business is expected to continue the strong performance in the first half for the remainder of the year.

The Retail Banking has been successful with increases in its consumer loans products, the Al Ahli Bank-Emirates Airline credit cards which has already achieved an unprecedented success with the launch of the bank's latest campaign "You Deserve It" with its exciting promotional prizes, featuring a 2003 Porsche Carrera.

Retail and institutional customers have also shown enthusiasm for the Al Ahli Kuwaiti Fund which was launched in January 2003 and has shown impressive returns in 2003.

The Bank has had improved results from their Dubai branch by focusing on business between Kuwait & the UAE and regional trade business.

Regarding the Kuwaitization policy, Mr. Behbehani indicated that the Bank continues to support the recruitment of Kuwaitis and providing training opportunities for new graduates in the different banking and management areas to help them to develop a career in banking.

Mr. Behbehani concluded by saying "The bank expects to continue the positive trends based on our clear strategic vision, initiative to launch innovative banking products & services, expansion of our retail branches, strong risk management and tight controls of costs.