2Q/ 1H 2023 Kuwait International Bank KSCP - Earnings Call
Edited transcript of KIB's earnings call conducted on Thursday, 17 Aug 2023 at 13:00 (Kuwait) and 11:00 (London - UK)
Corporate Participants: | |
Mr. Mohamed Said El Saka | Deputy Chief Executive Officer |
Mr. Ajai Thomas | General Manager - Financial Control & Planning/ CFO |
Mr. Abdullah Alasouse | Assistant General Manager - Financial Control |
Host: | |
Ms. Ahmad El-Shazly | EFG Hermes |
2Q/ 1H 2023 KIB - Earnings Call | |
Ahmad El-Shazly | Good morning and good afternoon everyone, thank you for joining with us today. |
This is Ahmad from EFG Hermes, I am pleased to welcome you to KIB's second | |
quarter 2023/ 1H 2023 earnings conference call and webcast. | |
I have with me here today Mr. Mohamed Said El Saka, Dy. Chief Executive Officer, | |
Mr. Ajai Thomas, General Manager Financial Control and Planning/Chief Financial | |
Officer and Mr. Abdullah Al Asouse, AGM - Financial Control | |
I will now turn the call over to Abdullah, without further delay. | |
Abdullah Al Asouse | Thank you, Ahmad, Good morning and good afternoon everyone. |
Please allow me to start this call today by reading a brief disclaimer while full | |
disclaimer is available to read on the screens in front of you. | |
Disclaimer: Statements included or incorporated by reference in this presentation, | |
other than statements or characterizations of historical fact, are forward-looking | |
statements. Such forward-looking statements are based on KIB's current | |
expectations, predictions and estimates and are not guarantees of future | |
performance, achievements or results. | |
This presentation contains certain data based on internal management estimates, | |
which may have not been independently verified by a third party. | |
In addition to the disclaimer I have just read, I request you all to read the full | |
disclaimer text on slide #2 of our presentation. | |
Allow me to go through the format for today's call: | |
Our Dy. Chief Executive Officer Mr. Mohamed Said El Saka, will provide update on | |
strategy and second quarter financial performance for 2023 followed by Mr. Ajai, | |
our CFO, who will take you through with the presentation pack for the financial | |
review in detail. | |
After concluding the presentation, we will address your questions received | |
through webcast platform. As the case may be, we will make every effort to | |
answer the questions received. However, if any questions are left unanswered due | |
to time constraints, or for any follow up questions that you might have, please feel |
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2Q/ 1H 2023 KIB - Earnings Call
free to contact us through the KIB's Investor relations email address, which you | |
can find on our website or on the last page of the presentation pack. | |
The presentation pack is also available for download from KIB website and will also | |
be published through Boursa Kuwait. | |
Now, handing over the call to KIB's Dy. Chief Executive Officer, Mr. Mohamed Said | |
El Saka. | |
Mohamed Said El Saka | Thank you, Abdullah, Good morning and good afternoon, everyone. |
Thank you for joining. | |
I'm pleased to welcome all the participants to our earnings call to elaborate on | |
the financial performance for the second quarter of 2023. | |
KIB successfully launched three new advanced digital platforms during the | |
second quarter of 2023 as part of digital transformation strategy. The new and | |
revamped Corporate Online Banking platform; first-of-its-kind KIB Aqari platform | |
and the upgraded KIB Mobile application. | |
KIB also partnered with VISA for the "Visa Ready" fintech Enablement program in | |
an effort to provide both Fintechs and traditional issuers full enablement stacks for | |
digital issuance speeding up their time to market and addressing the needs for | |
digital/technology first strategies. | |
On the strategic front, we have been diligently enhancing our systems and | |
infrastructure in the short term, thereby strengthening our digital capabilities and | |
operational efficiency. We have introduced a spectrum of services and are | |
actively pursuing strategic initiatives to broaden and diversify the value | |
propositions for our customers. | |
Transitioning to our long-term vision, we are focusing on nurturing a robust and | |
efficient business model managed by adept national professionals. We are | |
fostering an innovative work environment that leverages digitization across all | |
aspects, underpinned by a robust infrastructure and is equipped to adapt to | |
market volatility and evolving customer needs. As part of this vision, we have | |
launched three advanced digital platforms: a revamped Corporate Online | |
Banking platform, a unique real estate platform, and an upgraded mobile | |
application for retail customers. These platforms offer comprehensive banking | |
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2Q/ 1H 2023 KIB - Earnings Call
solutions, enabling customers to digitally manage their transactions and control their financial operations. Our aim is to develop innovative products and services that cater to the needs of retail and corporate customers, as well as tailored solutions for SMEs and entrepreneurs. This aligns with our commitment to improving cost structures, enhancing profitability, achieving sustainable growth, and strengthening our shareholders' rights.
During June 2023, KIB successfully concluded its capital increase by a rights issuance of KD 60 million, with oversubscription reaching 687%. This has boosted the bank's regulatory capital, capital ratios and will support our future growth aspirations in line with strategy.
Moving to our results for the first half of 2023;
KIB's renewed focus and efforts towards digital transformation and customer centric initiatives, has helped to achieve better results during the first half of the year.
KIB reported net profit attributable to shareholders of almost KD 6 million for the six months ended 30 June 2023 compared to KD 3.2 million in first half ended 30 June 2022, an increase of 88%. This was supported by higher operating income and partially offset by increase in operating expenses compared to similar period last year.
Profit from operations improved to 6.3 million dinars compared to 3.4 million dinars in 1H 2022, an increase of 87%.
Customer deposits decreased by 402 million KD to reach almost 1.9 billion KD a degrowth of 18% compared to 30 June 2022.
I would like to conclude my short briefing, and hand over to Ajai to take you through our financial results in detail and answer any questions that you may have.
Thank you very much.
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Kuwait International Bank KSC published this content on 20 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2023 05:12:04 UTC.