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00:00The main function of the bank is to focus on the local market.
00:03For us, the local market is the stage of lending to individuals and companies
00:08in all sectors of the company,
00:10whether it's in construction and construction, oil, services, and even trading.
00:18The same thing we did in the past years,
00:22we didn't open foreign branches,
00:23we did the same thing in Kuwait.
00:27But this is a challenge.
00:28It's a challenge because, as you know,
00:30in order to grow in the same situation we are in as a country,
00:34with the existing competition,
00:35we are 10 banks, as you know, 5 Islamic and 5 non-Islamic,
00:39so the competition itself is not easy.
00:41But I tried to keep a clean portfolio,
00:44because I also have NPL zero,
00:46which is the interest-free loans, which must be zero.
00:48So, therefore...
00:49You also worked a lot during the previous years,
00:53especially in 2000 and after 2009,
00:55because of the crisis with investment companies.
00:57In 2010 and 2011, loans were approved,
01:00and also during the work of the bank,
01:02about 5 or 6 years ago, the same thing was done,
01:04and loans were approved.
01:05Therefore, the portfolio is clean at the moment.
01:08Of course, in the future, there may be unexpected things,
01:11or a client may...
01:11Now, you have zero NPL?
01:13Yes, zero NPL, but you will see,
01:15for every amount that disappears in your budget,
01:18some specialties,
01:19either as a precaution,
01:20or expecting that a client may have something that will happen in the future.
01:25You can consider this part as your speciality,
01:28which is not fair,
01:29which is less than 1%,
01:31but in the end, you take it as a specialty,
01:33so it becomes zero.
01:34But, in terms of precaution, you will take care of yourself for the future.
01:37But this is also another challenge,
01:38which does not explain the size of the growth in profits and distribution.
01:42Yes, of course, focusing on the current clients,
01:45with some selected clients,
01:47which we are very selective,
01:49my portfolio has grown a little,
01:51but within reasonable limits,
01:53and according to your wishes.
01:54Then, the international interest has increased,
01:57as well as the profits and currencies,
01:59and I also have a return for some of the exports that were affected,
02:02which brought us back to a very reasonable amount at the end of the year.
02:07So, last year brought you back to 23%.
02:09That's right.
02:10Even in terms of maintaining and growing trust in Kuwait,
02:14last year, 2023,
02:15the growth of trust was not large and small compared to 2022.
02:20Do we expect this to continue in the year 2024?
02:23Especially that we do not expect the price to be lowered,
02:27as they said, within half a second of the year,
02:29because of the data that was issued at the time of the crisis.
02:32You know, when you said that we will reduce interest rates four times,
02:35we were a little surprised on any basis,
02:37because you saw how the inflation works all over the world,
02:40and in the surrounding countries, even all over the world,
02:42not only in Kuwait,
02:43and some countries affected more than Kuwait, of course,
02:45because the financial situation in Kuwait is strong,
02:47and the banks are in a very strong position.
02:49But when you look at it,
02:50they are talking about one time,
02:52maybe at the end of the year,
02:53but the interest rate will still be at a high level.
02:56I expect that by 2025,
02:57if interest rates start to decrease,
03:00it will not be in the sizes of five or six times,
03:02maybe two or three times,
03:03because there are global situations now,
03:05especially in the region,
03:06and the fear that anything will develop in any war
03:10that can happen in any country,
03:11or Iran's intervention,
03:13or Israel's intervention,
03:14any mistake in the region
03:15can lead to other consequences,
03:17which will make the interest rate not go down,
03:19and other changes will happen,
03:20and other developments.
03:21So the consequences will not be clear
03:23until, of course,
03:25we all do not expect a conflict to happen,
03:27or an expansion,
03:28there will be very big consequences
03:30in terms of the economy,
03:31the supply chain,
03:32the interests,
03:33everything will be affected,
03:34for sure.
03:35And apart from the geopolitical developments here in Kuwait,
03:38there is talk now about the application of the tax,
03:40the tax on companies.
03:41This tax, of course,
03:43is talking about 15%,
03:45meaning it accuses any growth.
03:46Of course, 15% is not a small percentage,
03:49it already takes from the bank,
03:51the interest,
03:53the interest that is paid,
03:54about 4.5%.
03:56So you have the difference of 11.5%,
03:58of course, it is not a small amount,
03:59of course, I agree with you,
04:01because you have to compensate it
04:02from your interests,
04:03so that you can pay
04:04little by little.
04:05The high percentage is 15% at the end.
04:07The bottom line,
04:08it's a cost on you.
04:10Yes.
04:10It also represents a challenge
04:12for the banking sector and all companies.
04:13For all companies and all the banking sector,
04:15because it is a global issue.
04:16We don't have rules about it.
04:19It will be a global law
04:20that applies to all countries.