Al-Jarrah:An enhanced strategy to strengthen KIB Group’s core banking operations and explore new avenues for growth

Bukhamseen: Significant achievements and strong growth across all business sectors during 2024

Enhancing efficiency and expanding digital horizons

From his side, Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer of KIB, said: 'The year 2024 saw significant achievements and strong growth across all our business sectors. Our banking operations experienced robust expansion in assets and deposits, while strategic partnerships with leading companies contributed to higher financing and non-financing revenues. We also enhanced corporate and individual service quality by streamlining processes, reducing transaction times, improving operational efficiency, and strengthening relationships with key customers.”

Regarding the Bank’s financial position, Bukhamseen highlighted that the total assets grew by 9%, reaching KD 3.92 billion, compared to KD 3.62 billion at the end of 2023. This increase was primarily driven by a 14% expansion in the financing portfolio, which rose to KD 2.85 billion by the end of 2024, up from KD 2.49 billion in 2023. Additionally, the investments portfolio, primarily concentrated on high-quality Sukuk, recorded a notable 42% increase, rising by KD 150.7 million to reach KD 513.4 million at the end of 2024, compared to KD 362.7 million in 2023

Bukhamseen added that depositors’ accounts grew by 30%, reaching KD 2.75 billion by the end of 2024, up from KD 2.12 billion in 2023. Meanwhile, shareholders' equity increased by 4% to KD 348 million.

He also highlighted that KIB maintained high levels of total capital adequacy ratio, in compliance with Basel III regulations, standing at 18.38% as of 31 December 2024, while maintaining adequate liquidity ratios for all regulatory ratios issued in this regard by the Central Bank of Kuwait and in compliance with Basel III regulations.

Bukhamseen underscored KIB’s notable achievements during 2024, including the successful issuance of a USD300 million Additional Tier 1 Sukuk (AT1) with an expected profit rate of 6.625%. The issuance saw investor demand exceeding twice the original size of the issued Sukuk, with final pricing achieving the tightest spread ever achieved on an AT1 Sukuk globally at the time of issuance, at 195 basis points above US Treasury.

The strong demand for the Sukuk reflects confidence in the strength and durability of the Kuwaiti banking sector in general, and Islamic banking operations and KIB in particular. It is also a clear indication and confirmation of the confidence that both local and international investors have placed in KIB's strategy and its distinguished and sustainable financial performance.

It is worth noting KIB's impressive track record in sukuk issuances. Through its investment arm, KIB Invest, KIB participated in the successful issuance of a USD1.25 billion, seven-year sovereign sukuk issued by the Government of Bahrain at the end of 2024, serving as Joint Lead Manager (JLM).

Bukhamseen also noted that KIB’s subsidiaries continue to achieve tangible achievements in diversifying and developing their products and services, targeting all companies across various sectors to provide innovative and advanced services.

Bukhamseen reaffirmed KIB’s optimistic outlook for the future, emphasizing its strong commitment to investing in human capital as a key strategic priority. This includes comprehensive training programs and opportunities for national talent, aimed at cultivating a new generation of qualified leaders.

Outstanding performance

On his part, Mohamed Said El Saka, KIB’s Deputy CEO, said: 'The 2024 end-of-year results represented a significant milestone in the Bank’s journey, as it continued to achieve its strategic objectives centered on innovation and sustainable growth. This approach has notably enhanced the Bank’s competitiveness by expanding its financing portfolio and adopting cutting-edge digital solutions that align with evolving market demands.'

El Saka added: “In the realm of digital services, we enhanced our online banking platform and mobile app for corporate customers. KIB has also made a significant advancement in the retail banking sector by leveraging digital capabilities. The Bank introduced numerous new features and services across its digital channels. Furthermore, KIB has invested in innovative digital solutions for the real estate sector. These initiatives have contributed to business growth, increased revenues, and diversified income streams. Additionally, we expanded our investments in real estate research and development.”

El Saka emphasized KIB’s continued efforts to strengthen its distinctive position in the sector. This was exemplified by the Bank receiving several prestigious awards in 2024, including “Best Real Estate Solutions Provider – MENA 2024” from Capital Finance International (CFI.co) magazine, “Best Retail Banking Product 2024” from World Finance magazine, recognizing the comprehensive upgrade of the KIB Mobile App, and “Excellence in FinTech Innovation & Digital Leadership in Kuwait for 2024” by the World Union of Arab Bankers (WUAB).

He added that these awards reflect KIB’s unwavering commitment to delivering innovative, high-quality services to its customers and reinforce its leadership in digital and real estate banking solutions.

ESG activities

In 2024, while implementing its strategic plan initiatives, KIB simultaneously reinforced its commitment to ESG practices and CSR, integrating them into the Bank’s broader strategic initiatives.

KIB also developed a dedicated ESG strategy and launched initiatives to promote energy conservation, encourage recycling, and reduce paper-based transactions. Additionally, it signed cooperation agreements with universities to provide training programs for students and introduced entrepreneurship training programs through the KIB Mubader Center.

Throughout 2024, the Bank remained focused on ensuring that all strategic initiatives align with regulatory requirements and implementing best-in-class cybersecurity practices to safeguard the Bank’s assets and customers.

Overall, KIB strives to balance strategic growth with social and environmental responsibility, while maintaining strict regulatory and security compliance.

Acknowledgments and appreciation

In his final remarks, Al-Jarrah extended his sincere thanks and appreciation to all shareholders, members of the Board of Directors, and the Executive Management for their continuous support to the Bank, and to everyone who supported its journey. He also expressed gratitude to the Central Bank of Kuwait for its ongoing support, commending its distinguished regulatory and supervisory role. Additionally, he thanked the Ministry of Commerce and Industry for its relentless efforts in supporting commercial and economic activities in the country, and the Capital Markets Authority for its supervisory and regulatory role in supporting an attractive and competitive investment environment in Kuwait.

Al-Jarrah also thanked the esteemed members of KIB’s Sharia Supervisory Board, as well as the Bank's employees for their outstanding efforts, and its valued customers for their trust and continuous support of its journey and their effective contribution to its achievements. He also commended the efforts made by the State of Kuwait, its leadership and its people, to maintain the stability and security of the country.

Election of the KIB’s board members

The Ordinary General Assembly of KIB's shareholders elected 11 members to the Bank's Board of Directors for the next three years. The non-independent members elected were Sheikh Mohammed Jarrah Al-Sabah, Mr. Raed Jawad Bukhamseen, Mr. Anwar Jawad Bukhamseen, Mr. Jassim Hassan Zainal, Dr. Abdullah Abdul Samad Marafi, Mr. Saleh Sulaiman Al-Trad, and Mr. Marzouq Khaled Yousef Al-Marzouq. The independent members were Mr. Abdul Razzaq Salah Al-Mutawa, Mr. Jassim Mohammed Al-Wazzan, Mr. Jihad Mohammed Ahmed Al-Qabandi, and Mr. Salem Falah Al-Hajraf.