Kuwait, 20 June 2023: Kuwait International Bank (KIB) announced the successful completion of the subscription process to increase its capital by offering 428,571,429 shares, at a value of KD 60 million. The right issue was oversubscribed by 687%, and the capital increase comes in line with the Bank’s strategy to achieve further development and growth.
Following the completion of the capital increase, the Bank’s paid-up capital increased by 34.98% to reach KD 165.4 million which strengthens the Bank's financial position. The Bank will use the proceeds of the capital increase to support the Bank’s regulatory capital ratios and support its growth plans. In addition, the proceeds will be additional investments in developing its digital infrastructure to provide digital banking services of high quality.
The rights issue period commenced on Tuesday May 30th until June 13th. Kamco Investment Company K.S.C.P. (Kamco Invest) managed the offering in their capacity as the Issuance Advisor and Subscription Agent, and Meysan Partners were appointed by the Bank as the Legal Advisors. The subscription process was fully automated whereby applications were submitted through Kuwait Clearing Company's online subscription platform, www.ipo.com.kw.
Raed Jawad Bukhamseen, Vice Chairman and Chief Executive Officer of the Bank, said: “We were pleased to witness a high level of shareholder participation and oversubscription of the offering, which is reflective of our shareholders’ commitment to the Bank and investors’ confidence in the strategy adopted by the Bank. I would like to take this opportunity to highlight the role played by the “Kamco Invest” team, the Issuance Advisor and Subscription Agent, and Kuwait Clearing Company, the Clearing and Depository Agent, in the success of this offering, in addition to the support from the regulatory authorities including the Central Bank of Kuwait, the Capital Markets Authority, the Ministry of Commerce and Industry, and Boursa Kuwait.”
He added, “The capital increase will strengthen KIB’s capital base and enhance its capital adequacy ratios. The proceeds from the offering will contribute to the Bank's overall growth trajectory and business development activities. In further efforts to cement our position as a leading and competitive financial institution in the region, we remain committed to implementing our transformational strategy that is in step with the banking sector’s continuous development and reflects our future-focused vision.”
Bukhamseen added: “As a forward-looking bank, we will use the capital increase to achieve the objectives drawn in our dynamic strategy to enrich customers’ experiences by providing innovative, next-level products and services that meet their needs and add real value to their lifestyles. In addition, we will continue driving innovation in the banking sector by investing in digital technology, which, in turn, would enable us to provide holistic solutions to cope with the rapid changes in the local and regional markets.”
The Bank’s financial results for the fiscal year 2022 showcased a solid financial performance, with a net profit attributable to shareholders reaching almost KD 13.6 million, with earnings per share (EPS) of 7.92 fils, and a steady growth rate of 25% compared to the previous year. The consolidation financial statements indicated that the Bank's assets grew by 14%, reaching KD 3.58 billion by the end of 2022 - compared to almost KD 3.14 billion in the preceding year. This growth resulted from an increase in financing portfolio by KD 346 million to reach almost KD 2.62 billion at the end of 2022, compared to KD 2.27 billion at the end of 2021, achieving a growth of 15%, denoting an upward growth trajectory and sound financial performance for the Bank.
Regarding the Bank’s interim financial statements for the first quarter 2023, KIB achieved net profit attributable to shareholders amounting to KD 3.5 million, Earnings per share (EPS) was 3.15 fils, which grew by 42% compared to KD 2.5 million, 2.22 fils for the first quarter of 2022. Total operating income was almost KD 17.2 million, which grew 7% compared to first quarter 2022. In terms of KIB’s financial position, KIB’s assets growth was driven by the increase in size of the financing portfolio, which increased by KD 143 million to reach almost KD 2.57 billion by end of March 2023, compared to almost KD 2.43 billion at the end of March 2022, achieving a growth of 6%. In addition, KIB’s investment securities portfolio, which included primarily high quality Sukuk, grew by KD 5.7 million, reaching almost KD 305 million by the end of 1Q 2023, compared to KD 300 million during 1Q 2022.
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