Between 2008 and 2011, the world economy was on a rollercoaster and its contractions affected the Kuwaiti economy and the banking sector in particular, especially with a recession in the operating activities of the various economic sectors. However, Boubyan Bank continued with its organisational changes, actioned in 2009, which led to a new corporate strategy focused on the banking basics: corporate and consumer banking.

In 2011, the bank provided the best products and services, according to several international assessments by research firms, and also picked up four banking awards.

The new strategy
The bank’s new management, which took command of operations in the second half of 2009, focused on three pillars within its endeavours to develop the bank. The first pillar focused on the strategic trends that have been redefined from investment basic banking namely retail banking, corporate banking and private banking in addition to asset management, all of which account for the main source of income.

The second pillar included reinforcement of the bank’s financial positions and building a sound balance sheet by increasing capital by 50 percent in 2011 to raise the shareholders’ equity to K$240m (as at the 3rd quarter 2011) and, subsequently, Capital Adequacy Ratio to 25 percent against 12 percent stipulated by the Central Bank of Kuwait.

Attracting high flyers
The third pillar is based on recruitment and retention of competent high flyers to ensure the sound implementation of the corporate strategy. In 2011, Boubyan Bank managed to attract a number of experienced professionals for the various business groups.

Of the recruitment drive, Mr Adel Al-Majed, the Vice-chairman and Managing Director said: “Our human resources were and still are the main driver of our previous and present achievements and the bank’s executive management is keen to support and develop our human resources through well-planned and specialised trainings and skill enhancement courses to ensure better customer services.”

“Initiatives by the management to reinforce the abilities of human resources took into consideration recruitment of the national high flyers as part of the corporate social responsibility drive. Our bank has one of the highest Kuwaitisation rates among the banks in Kuwait with a national labour ratio of 64 percent that reflects our belief in the skills and competencies of our national labour and assures our drive to support the Kuwaiti young workforce.”

Interim goals
On the other hand, Al-Majed clarified that the strategy approved by the Board of Directors, which has been put in place last year, encompasses two main components: (1) capitalising on the increasing growth and the hike in demand on the Islamic finance, and (2) the change in the local market from a single player to a multiplayer competition, which gave rise to an increase in the bank’s market share in terms of the number of customers and deposits and growing finance.

Given the record results and favourable changes, Al-Majed summarised the main interim goals of the bank saying: “Boubyan Bank is taking steps to have a significant market share of Kuwait’s Islamic service market, which is witnessing a remarkable growth in products and services it provides.”

Excellence to go on
During 2011, Boubyan Bank succeeded in getting closer to its customers and reaching the different areas of Kuwait through expanding its branch network and developing its products by adding three new branches in Ahmadi, Qasr and G1 in the Ministry of Defense Building; thus boosting up the total number of branches to 20 branches; the fact that proves that the bank is heading the right way towards achieving its target of 30 branches by 2014.

In addition, Boubyan Mobile Banking Service was launched, and despite Boubyan not being the first to introduce such a service in the local market, it was the first time a wide array of banking services were introduced through different mobile phone platforms. The expansion and development march continued its progress, including opening new outlets and additional presence for the bank’s sales team at auto dealers, as well as shopping complexes and trade fairs, besides the participation in many specialised fairs and different events.

Without any doubt, the sincere efforts and excellence of Personal Banking Services executives for providing an A-Class service to the private and platinum banking customers has borne its fruits as manifested in the solicitation of new high net worth customers and the remarkable expansion of its customer base.

As for bank accounts, and in order to provide products and services with special characteristics that best fulfil customers’ needs, these accounts have been enriched by adding ‘Al-Ghali’ Kids Account and a ‘WOW’ Youth Account. Moreover, Q2 of 2011 witnessed the launching of ‘Salary Accounts’ through which special offers and benefits responding to the needs of all customers were presented. In the same context, ‘Hayyak’ fresh graduates account, ‘Wiyyak’ account that meets the aspirations of the householder and ‘Anti’ ladies account as well as offering two new distinguished products: health and education finance. Boubyan Bank consummated its distinction with the service of immediate issuance of banking cards that facilitate for customers obtaining credit and ATM cards within a few minutes. Also, Boubyan Bank was the first to launch the Islamic online brokerage service for GCC equity markets, and to give customers new choices for deposit and investment by offering Boubyan Money Market Fund.

The bank of choice for companies
Boubyan Bank aims to be the bank of choice for companies desiring to deal with Islamic banks. The organisational structure in line with the new strategy based on diversifying banking relationships to encompass all economic sectors while focusing on productive sectors and targeting medium and large-sized companies to realise the best banking service.

Structured and Syndicated Finance Department plays a key role in providing new finance instruments with a focus on growth in syndicated finance to productive companies and development plan projects. In 2011, the department arranged a syndicated finance transaction for Boubyan Petrochemical Company by successfully gathering a number of local and international banks to participate in this transaction, thus raising its value to $130m.

The bank led an Islamic banking alliance in a syndicated finance valuing K$48m for the Saudi Al-Khorayef Group Co, to implement the first phase of the New Gathering Centre 16 Project in west Kuwait for the Kuwait Oil Company. The finance included two tranches: an Islamic one arranged and led by Boubyan Bank, and a conventional one arranged and led by the NBK.

HR the secret to our success
The year 2011 witnessed an expansion in the base of professionally certified trainees both on the local and international levels. In addition, the entire bank’s staff underwent retraining and qualification through an integrated training system and the bank completed the preparation of the career path plans for each position in the organisational structure out of the care to create a highly professional organisational environment.