The bank in a statement said the income from operations, excluding non-recurring items, grew by 2.5 fold to reach $6 million as compared to $2.4 million in 1H of 2010.
Financial commitments and debt obligations reduced by nearly two thirds relative to end-June 2009 reflecting efforts to constantly deleverage the Bank’s balance sheet. Over the last 18 months alone, the Bank has honoured an aggregate $18.0 million in creditor obligations, all of which funded from internal accruals.
Capital adequacy was amongst the highest in the Kingdom at 28 per cent at end of 1H of the year.
“We are very pleased with the pace of progress of the Bank despite the regional and global uncertainties – a testament to the multi faceted nature of its model and the successes of its new initiatives that also encompass lines of business with stable and recurring sources of income that are less susceptible to market cycles. The once predominantly private equity model has now been replaced with one with diverse asset classes. The major shareholders have made a capital contribution towards the Bank’s capital raising efforts– which further demonstrates shareholders commitment and confidence in the institution,” Sheikh Abdullah Al Sabah – Vice Chairman of the Bank, said.
“The Bank continues to forge ahead in implementing its strategy in a measured and systematic manner. Qualitative and quantitative results have been witnessed across the Bank’s business operations and financial performance,” Akbar Habib, Chief Executive Officer, said.
“The Q2 also marks a significant milestone in the Bank’s relentless effort to remedy all actions and inactions of the past and its negative consequences on its balance sheet with all such issues now stand being addressed and normalized. The qualitative shift in the Bank’s sources of income signifies the viability and diversity of its new model – particularly in light of the level of uncertainty and volatility seen in the present market environment. However, caution is maintained in respect to the European and US uncertainties which poses a new challenge for global markets and financial institutions around the world. Diversity is the order of the day – even within various asset classes – as the Bank looks to gradually expand the breadth and depth of operations in a measured and disciplined manner with the aim of achieving the desired levels of diversity and sustainable sources of income. Looking ahead, it gives us a great sense of satisfaction in reflecting upon our journey as we continue our quest to position the Bank as a niche and specialist financial service provider in the region and beyond,” he added.