Boubyan Bank for Arabia: Bad loans 0.9% of the portfolio and provisions covered by 320%

Boubyan Bank’s CEO of Banking, Personal and Digital Services, Abdullah Al-Tuwaijri, said the bank achieved operating profits of around 100 million dinars in 2021, up 8%, and this is a milestone. in the history of the bank.

Abdullah Al-Tuwaijri added, in an interview with Al-Arabiya, today, Thursday, that allocations have decreased by 14% to 8.5 million dinars, reflecting the health of the financing portfolio and the improvement of the operating environment in Kuwait, after death, returned to normal and fears about the repercussions of the Corona pandemic vanished in the years 2020 and 2021.

Al-Tuwaijri explained that the provisions represent 0.9% of the portfolio volume and their coverage ratio is 320%, which is a good coverage ratio.

Boubyan Bank’s CEO of Banking, Personal and Digital Services indicated excellent performance in the growth of the loan portfolio to a value of 700 million dinars, which represents 14% growth in the portfolio over the past year, and the greatest growth in it was 27% for private individuals, for a value of 500 million dinars, while loans to businesses grew by a value of 150 million dinars, an increase of 8%.

He explained that the largest percentage of operating income comes from the financing portfolio, noting the growth of wealth management and investment funds.

Al-Tuwaijri said that Boubyan Bank has become the third largest bank in Kuwait, in terms of business amounted to 7.5 billion Kuwaiti dinars, reflecting the increased customer base.

He added that as far as operating expenses are concerned, Boubyan Bank invests heavily in digital services and in the last year has launched a digital bank from the UK, which is still an emerging bank and requires large investments to reach the growth stage, and this it is part of the bank’s strategy to develop digital operations and diversify sources of income so as not to be fully credited to the loan portfolio.

Abdullah Al-Tuwaijri indicated that over the past year there has been unusual revenue represented as government compensation for the expenses incurred by the bank in 2021.

Regarding the bank’s stake in the government’s initiative to postpone the rate of the loan to citizens, the chief executive of Banking said that the works are still in course with the government to receive it and it is in phase of finalization of procedures now, and the bank’s share is 51 million dinars.

He explained that the bank is looking to increase government projects in 2022, while regressing those projects in 2021, as the economy and the procurement sector have shifted and therefore increased corporate finance.

Kuwaiti Boubyan Bank’s net profit increased 49% in the fourth quarter of 2021, compared to the same quarter of 2020, reaching 16.6 million dinars. Over the past year, the bank’s profits have grown 41% to 48.5 million dinars

The bank attributed the increase in profit to the increase in net financial income, in addition to the increase in net investment income and the decrease in the provision for bad debt.

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