ABK Strategic Overview and Financial Performance
Capitalisation Overview
Capital Adequacy Ratio
Basel III
650
الأهلي
авк
2
Regulatory Capital (KD, million)
705
683
43
45
45
19.2%
600
576
18.6%
562
17.7%
17.2%
17.2%
546
40
550
660
17.5%
38
640
17.9%
38
16.0%
16.0%
16.5%
500
13.5%
13.5%
13.5%
535
13.0%
524
508
12.5%
450
2015
2016
2017
2018
2019
11.5%
11.0%
11.5%
11.5%
10.5%
Tier 1
■Tier 2 capital
2015
2016
2017
2018
2019
Min Required Tier 1 -Min. Required CAR*
Tier 1
CAR
*Including D-SIB charge. The Group has been designated as a domestically systemic important
bank ("D-SIB") with an additional Common Equity Tier 1 D-SIB surcharge of 0.5 per cent. required
from 31 December 2016. As a result, the Group's total minimum capital requirement from that
date is 13.5 per cent., which includes a capital conservation buffer.
The principal factor behind the Group's falling capital ratios in 2015 was the significant increase
in its risk weighted exposures, reflecting the increase in its portfolio of loans and advances in
2015 and to a lesser extent a decrease in the available capital as a result of the acquisition of
Pireaus Bank Egypt. 2018 Capital ratio increase is driven by issuance of Additional Tier 1 capital
securities of KD 91m
Key Central Bank of Kuwait Regulations & Requirements*
Common Equity Tier 1
Tier 1 Capital Ratio
Capital Adequacy Ratio
D-SIB surcharge
Net Stable Funding Ratio
Liquidity Coverage Ratio
Loan to Deposit Ratio
Investment Limits
9.5%
11.0%
13.0%
0.5%
Equal to at least 100% on an ongoing basis
effective from 1st January 2018
Minimum of 70% which will later reach 100%
by 2019
Capped at 90%
Total ratio of securities portfolio excluding
government bonds shouldn't exceed 50% of
bank's capital base
Increase is because of issuance of Additional Tier 1 capital of USD 300m in September 2018
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