By Ahmed Awad
Kuwait – Mubasher: Ah Ahli Bank of Kuwait (ABK) may carry out a capital increase in 2017 to proceed with its growth and expansion plan, said the lender's chief executive in an exclusive interview with Mubasher.
CEO Michel Accad added that capital adequacy levels currently do not require an increase, as it amounts to 17%, which is higher than the requirements set by Kuwait's central bank.
ABK also plans to raise the capital of Piraeus Bank Egypt by EGP 300 million to EGP 1 billion by the end of 2016, Accad revealed.
Kuwait will continue to geographically have the biggest share in the bank's investments, with around 85%, while Egypt and UAE account for 10% and 5%. ABK plans to boost its investments in Egypt to 15% of its total investments in the coming five years, according to the official.
Accad explained that ABK generated strong revenues in 2015, but it set aside large provisions due to the slump in oil prices, in addition to the fall in stocks on Kuwaiti bourse.
He noted that the coming three quarters of this year would see more provisions.
Asked whether ABK would invest in the bonds the Kuwaiti government would issue to finance the budget deficit, the CEO said the bank is particularly prepared to invest in them when issued.
Translated by Sayed Abdel Rahman
