Warba Bank is moving towards establishing a new investment company operating in accordance with Shari’ah rules.

“The general assembly was held on 14 August 2013 where all business condition was agreed on,” said a media statement. “These included the approval of the balance sheet and financial statements for the financial year that ended on 31 December 2012. The board members will be discharged of their legal actions during the previous financial year, and delegating the Board of Directors to grant the needed financing to the members of the Board of Directors and related parties.

“Chairman and Managing Director, Mr. Jassar Dakheel Al-Jassar clarified by stating, Warba Bank achieved good financial results in a short period despite the increasing local competition and world economic challenges.

“He also mentioned that the bank achieved a total income of KWD 8.1 million for 2012 compared to KWD 3 million in 2011 at a growth rate of 170 per cent. As a result of the high costs required to establish the bank and provide the infrastructure needed for its start of operational activity including technological systems and equipping the headquarters and branches with the gradual growth of the asset portfolio of income generated, revenue for the expenses achieved in the earlier stages of the bank were not achieved. The business posted a net loss KWD 1.9 million for the year 2012 which represents a reduction rate of 36 per cent as opposed to a net loss of KWD 2.9 million for the financial period ended 2011. The banks total assets rose to about KWD 223 million as compared to KWD 121 million in 2011, at a growth rate of 84 per cent. The total deposits also redoubled five times reaching a total amount of KWD 78.2 million of customers deposits at the end of 2012 compared to KWD 13 million at the end of 2011.”

Al Jassar said, “Warba Bank (WB) was established during the period where Kuwait was impacted just like all other countries by the global financial crises and its repercussions. Despite the magnitude of the challenges we faced, the results achieved by the bank confirm that the bank is on the right track specified by the strategy set since the beginning of its establishment, and that the developments made by the bank during the past year began to bear the desired results. We succeeded because of the efforts of everyone, both at the Board of Directors level and all bank employees. We are still determined to continue our success with an aim to enrich the capability of Islamic financial institutions while being an added value to the current established Islamic banks.

During the General Assemblys meeting, he also added, “Undoubtedly, the most important event that took place during the year 2012 was the presence and the patronage of His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, for the official inauguration ceremony of Warba Bank in the presence of a large number of statesmen, led by His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah. Warba Bank has made great achievements in terms of recruitment and training of the Kuwaiti youth, which has exceeded the percentage of qualified Kuwaitis by 60 per cent out of the total number of the bank employees, and 75 per cent of the executive and leadership positions as at 31 December 2012. The executive management was keen to provide job opportunities for the Kuwaiti youth and rehabilitation through theoretical and practical training courses on the banks advanced systems and in various fields and specialisations.

“On the other hand, the Retail Banking Group (RBG) offers a variety of products and services which represent a key pillar of the banks performance, and move towards one direction that focuses on improving the level of customer service, and providing them with all of their financing needs on one side and the investment needs on the other side. As regards the customers financing needs, numerous Sharia-compliant solutions catering for various segments of customers were introduced, such as Murabaha and Musawama for consumer requirements and goods. In terms of the investment needs of customers, the focus has been to fulfill customers investment requirement that suits each customer individually.

“Also, nine diverse banking cards that suits the needs of different customers were issued, while focusing on the development of the technical side to make it easy for the customer to track his/her financial accounts easily and efficiently via Call Center, Interactive Voice Response (IVR), and soon via the internet as well as intending to spread in all governorates of Kuwait through the opening of new branches in addition to the 6 branches that have been opened to date, the last one being in the Avenues. In the area of corporate finance and during the year 2012, Warba Bank funded several companies operating in the various sectors of the industrial, real estate, commercial, services and contracting market with an aim to establish a high quality diversified a financing portfolio. During the General Assemblys meeting, Al Jassar also mentioned that Warba bank managed to provide National Industries Group (NIG), one of prestigious companies in Kuwait, with syndicated financing facilities of more than KWD 100 million.

“This financing facility is considered to be one of the most important achievements made by the bank during 2012 despite the fact that the bank being new. Some local banks participated in this syndication. The group also introduced and developed numerous Sharia-compliant products during 2012, such as Murabaha and Lease to own Ijara product tailored for WBs clients of the real estate sector. Other Sharia-compliant products are currently being considered by the bank which will hopefully be introduced during the current year and that would also serve Warba Bank customers and at the same time distinguish it from other Islamic banks. For the investment sector, Warba Bank succeeded in entering into a number of distinct investments and managed to build a portfolio of global Sukuk issued by governments or companies with an investment rating, which contributed significantly in the improvement of Warba Banks revenues and in achieving stable cash flows.

“Al Jassar also revealed that the bank is moving towards establishing an investment company operating in accordance with Islamic Shari’ah rules with a capital of KWD 16 million. This company, which has recently been approved by WB Board of Directors, will be 100 per cent owned by the bank, and this move comes from Warba Bank in an effort to separate the banks investment products and funds management activities and place them under the umbrella of the new company. As forthe bank’s shares listing in the Kuwait Stock Exchange (KSE), an application has been submitted to the Capital Markets Authority (CMA) on 23rd December, 2012 in order to be listed in KSE. For this purpose, a contract was signed with Kuwait Investment Company- one of the oldest and reputable companies in Kuwait- to act as a listing advisor for the bank in accordance with the requirements of CMA and KSE. Al Jassar also expressed his appreciation to the general investment authority and to the Central Bank of Kuwait for their constant support. I would like to thank the board members for their sincere efforts and continuous devotion to elevate this promising institution; the thanks are also extended to the honorable chairman and distinguished members of Sharia Supervisory Board; as well as to the group heads in the executive management; and to all Warba Banks employees for their efforts and dedication at work.”

The Board of Directors was elected in its second session consisting of:

1. Mr. Jassar Dakheel Al Jassar
2. Mr. Ahmad AbdulRahman Al Melhem
3. Mr. Jamal Abdullah Dashti
4. Mr. AbdulWahab Abdullah Houti
5. Mr. Othman Ibrahim Al Issa
6. Mr. Emad Abdullah Al Thaqib
7. Mr. Hisham AbdulRazak Al Razzuqi

*This article was published by CPI Financial. Read the original article here.