Central Bank of Kuwait approves 100 percent capital increase for Warba Bank
Date
1/12/2025 2:16:40 AM
(MENAFN) The Central bank of Kuwait has given its initial approval for a 100 percent capital increase for Warba Bank, as revealed in a disclosure on the Kuwait Stock Exchange website on Sunday. Warba Bank announced its intention to recommend to the General Assembly that the Board of Directors be authorized to determine the issuance premium for the new shares. This would be in addition to the nominal value already established by law. The bank emphasized that the capital increase would strengthen its regulatory capital ratio while also addressing its future financial needs.
Currently, Warba Bank’s capital stands at 218 million Kuwaiti dinars, equivalent to approximately 706.6 million U.S. dollars, distributed over 2.18 billion shares. The planned capital increase is expected to provide the bank with greater financial flexibility to meet its growth objectives and enhance its competitive standing in the financial market. The move underscores Warba Bank’s strategy to maintain a solid capital base while preparing for future opportunities and challenges in the banking sector.
Recently, Warba Bank finalized an agreement to acquire all shares constituting the capital of Alghanim Commercial Company. This company owns 32.75 percent of Gulf Bank’s capital, and the deal was valued at 498.1 million Kuwaiti dinars. The acquisition aligns with Warba Bank’s broader plans for expansion and investment in strategic assets, further strengthening its market presence.
Over the first nine months of last year, Warba Bank reported a 4 percent increase in net profits, reaching 14.9 million Kuwaiti dinars, or approximately 48.6 million U.S. dollars. This growth was attributed to a rise in net financing income and a 7.2 percent increase in operating revenues, which totaled 53.25 million Kuwaiti dinars. While the higher revenues contributed positively to the bank’s financial performance, they were partially offset by an increase in operating expenses during the same period.
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