Warba Bank K S C P : Financial Results 31 March 2024

KPMG Al-Qenae & Partners

Al Hamra Tower, 25th Floor Abdulaziz Al Saqr Street P.O Box 24, Safat 13001 State of Kuwait

[phone]

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF WARBA BANK K.S.C.P.

Introduction

We have reviewed the interim condensed consolidated statement of financial position of Warba Bank

K.S.C.P. ( and its subsidiaries (collectively the 31 March 2024, and the related interim condensed consolidated statement of profit or loss, interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the three-month period then ended. The management of the Bank is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the basis of preparation set out in Note 2. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim condensed consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial information is not prepared, in all material respects, in accordance with the basis of preparation set out in Note 2.

Report on other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Bank. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, its executive

regulations, as amended, or of the Articles of Association and Memorandum of Incorporation, as amended, during the three-month period ended 31 March 2024 that might have had a material effect on the business of the Bank or on its financial position.

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No. 32 of 1968, as amended, concerning currency, the Central Bank of Kuwait and the organisation of banking business, and its related regulations, during the three-month period ended 31 March 2024 that might have had a material effect on the business of the Bank or on its financial position.

	BADER A. AL-ABDULJADER		DR. RASHEED M. AL		QENAE
	LICENCE NO. 207-A		LICENSE NO. 130
	EY		OF KPMG AL-QENAE & PARTNERS
	(AL AIBAN, AL OSAIMI & PARTNERS)		MEMBER FIRM OF KPMG INTERNATIONAL
23 April 2024
Kuwait

Warba Bank K.S.C.P.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 31 March 2024

		Three months ended
		31 March
		2024	2023
	Notes	KD'000	KD'000
Placements and finance income		60,566	49,580
Finance costs and distribution to depositors		(47,319)	(40,536)
		───────	───────
Net finance income		13,247	9,044
Net investment income		2,175	4,692
Net fees and commission income		1,564	875
Other income		129	480
Net foreign exchange gain		1,253	27
		───────	───────
Net operating income		18,368	15,118
		───────	───────
Staff costs		(6,440)	(5,397)
General and administrative expenses		(1,656)	(1,458)
Depreciation expense		(1,699)	(1,592)
		───────	───────
Net operating expenses		(9,795)	(8,447)
Net operating profit before provision for impairment and		───────	───────
credit losses		8,573	6,671
Provision for impairment and credit losses	8	(3,614)	(2,175)
		───────	───────
Profit before tax		4,959	4,496
Contribution to Kuwait Foundation for the Advancement of Sciences		(45)
(KFAS)		(40)
National Labour Support Tax (NLST)		(128)	(116)
Zakat		(51)	(47)
		───────	───────
NET PROFIT FOR THE PERIOD		4,735	4,293
		═══════	═══════
BASIC AND DILUTED EARNINGS PER SHARE (EPS)	9	2.17 fils	1.97 fils
		═══════	═══════

The accompanying notes 1 to 16 form an integral part of this interim condensed consolidated financial information.

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Warba Bank K.S.C.P.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 31 March 2024

	Three months ended
	31 March
	2024	2023
	KD'000	KD'000
NET PROFIT FOR THE PERIOD	4,735	4,293
Other comprehensive income (loss)	───────	───────
Other comprehensive income (loss) that will be reclassified to profit or loss:
Debt instruments at fair value through other comprehensive income:	383
Net change in fair value during the period	2,354
Changes in allowance for expected credit losses	(8)	(7)
Reclassification to profit or loss	(1,246)	11
Net (losses) gains on debt instruments at fair value through other	───────	───────
(871)
comprehensive income	2,358
Foreign currency translation:	───────	───────
(410)
Exchange differences on translation of foreign operations	435
Net exchange differences recycled to profit or loss on derecognition of	(42)
investment in a joint venture	36
	───────	───────
Net foreign currency translation	(452)	471
	───────	───────
OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD	(1,323)	2,829
	───────	───────
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	3,412	7,122
	═══════	═══════

The accompanying notes 1 to 16 form an integral part of this interim condensed consolidated financial information.

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Warba Bank K.S.C.P.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

For the period ended 31 March 2024

					Foreign				Equity
					currency				attributable to	Perpetual
	Share	Share	Statutory	Fair value	translation	Retained		Proposed	shareholders	Tier 1	Total
	capital	premium	reserve	reserve	reserve	earnings Sub-total dividends	of the Bank	Sukuk	equity
	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000	KD'000
As at 1 January 2024	206,000	80,375	8,871	(4,517)	1,175	11,124	303,028	12,360	315,388	75,808	391,196
Net profit for the period	-	-	-	-	-	4,735	4,735	-	4,735	-	4,735
Other comprehensive loss	-	-	-	(871)	(452)	-	(1,323)	-	(1,323)	-	(1,323)
Total comprehensive (loss) income for	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────
			(871)	(452)	4,735	3,412		3,412		3,412
the period	-	-	-	-	-
	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────
At 31 March 2024	206,000	80,375	8,871	(5,388)	723	15,859	306,440	12,360	318,800	75,808	394,608
	══════	══════	══════	══════	══════	══════	══════	══════	══════	══════	══════
As at 1 January 2023	200,000	80,375	6,803	(9,759)	(276)	8,966	286,109	12,000	298,109	75,808	373,917
Net profit for the period	-	-	-	-	-	4,293	4,293	-	4,293	-	4,293
Other comprehensive income	-	-	-	2,358	471	-	2,829	-	2,829	-	2,829
Total comprehensive income for the	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────
-	-	-					-		-
period	2,358	471	4,293	7,122	7,122	7,122
Cash dividends (Note 6)	-	-	-	-	-	-	-	(6,000)	(6,000)	-	(6,000)
	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────	──────
At 31 March 2023	200,000	80,375	6,803	(7,401)	195	13,259	293,231	6,000	299,231	75,808	375,039
	══════	══════	══════	══════	══════	══════	══════	══════	══════	══════	══════

The accompanying notes 1 to 16 form an integral part of this interim condensed consolidated financial information.

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