Warba Bank plans new investment company

15/08/2013 07:30 AST

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.

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