Al Ahli Bank of Kuwait K S C P : Successfully Completes Capital Increase

Al Ahli Bank of Kuwait (ABK) announced the successful completion of its capital increase by offering 500 million shares valued at KD 100 million. The demand exceeded the targeted value by 331% to reach KD 331.37 million.

Following the completion of the capital increase, the Bank's paid-up capital increased by 26.7% to reach KD 237.4 million. ABK will utilize the proceeds to strengthen its capital base, aligning with its strategy to further develop and grow its operations.

The subscription period spanned from Sunday, 27 August 2023 to Sunday, 10 September 2023, managed by Kamco Invest as the Lead Manager and Subscription Agent along with ABK Capital as the Joint Lead Manager and Subscription Agent. The subscription was conducted entirely through Kuwait Clearing Company's online platform.

On this occasion, Mr. Talal Behbehani, Chairman of ABK Group, said, "We are pleased with the level of demand witnessed throughout the subscription process. Exceeding the targeted value is a reflection of shareholders' confidence in the Bank."

Mr. Behbehani highlighted that the subscription coverage exceeded the offering value by 331%. He emphasized that the capital increase would strengthen the Bank's capital base and contribute towards enhancing its core business activities, reinforcing its leading position in the Kuwaiti banking sector.

The Chairman affirmed that proceeds will also be allocated towards achieving the targets set under ABK's strategy, which include enriching customer experience, investing in the Bank's digital transformation strategy, and keeping pace with the rapid changes in the local, regional, and global banking industry. This will contribute to enhancing ABK's operations in the Kuwaiti market through the provision of new banking products and services as well as allow the Bank to finance infrastructure projects in the country.

In terms of the Bank's geographical presence, Mr. Behbehani emphasized that the capital increase will contribute to the Bank's expansion plans in the regional markets in which it operates, namely Egypt and the United Arab Emirates. He said, "The Bank continuously strives to add value to all its stakeholders, including shareholders, customers and others."

Mr. Behbehani extended his appreciation to Kamco Invest, ABK Capital, and Kuwait Clearing Company for their significant efforts in managing the subscription process. He also praised the ongoing support ABK receives from the Central Bank of Kuwait, the Capital Markets Authority, and the Ministry of Commerce and Industry.

For his part, Mr. Abdulla Al Sumait, Acting Group CEO at ABK, said, "We are proud of our investors' great confidence in ABK. This is reflected in the great turnout where proceeds from the capital increase will contribute to strengthening our competitive position in the banking sector."

He added that ABK is keen on implementing its strategic transformation plans, pointing out that the capital increase will contribute to strengthening operations in Kuwait and across the region in the UAE, and Egypt.

ABK achieved a Net Profit of KD 23.9 million at the end of the first half of 2023, representing a growth of 30% compared to KD 18.4 million during the first half of 2022. Meanwhile, Earnings per Share reached 11 fils compared to 8 fils during the same period in the previous year.

ABK's financial performance reflects its continuous improvement in key operational aspects, the strong growth of its loan portfolio, the decrease in its provisions and risks, its healthy balance sheet, and its stable liquidity levels.

Since its establishment in 1967, ABK has progressed to become one of the leading Kuwaiti banks in the region that offers a wide array of personal, corporate, and private banking products and services. ABK also provides a broad range of local, regional, and global investment solutions and services through its subsidiary, ABK Capital.

Across the region, the Bank offers individuals and corporates the convenience of comprehensive banking and financial services in the Egyptian market through ABK-Egypt's network of 44 branches. This is in addition to ABK's three branches located in Dubai, Abu Dhabi, and Dubai International Financial Centre (DIFC) in the United Arab Emirates, servicing both Kuwaiti and Emirati individual and corporate clients.

ABK is a strong supporter of the Central Bank of Kuwait and Kuwait Banking Association's 'Let's Be Aware' awareness campaign. Through its various initiatives, the Bank aims to promote financial inclusion by educating Kuwaiti society about customer rights, responsibilities, and the different types of banking and special needs services. Additionally, ABK consistently provides strategic information on how to avoid banking and financial fraud, loan application requirements, digital services, and more.