Al-Tijari—where digital transformation, customer-centricity drives growth
Elham Mahfouz, CEO, Al Tijari (Commercial Bank of Kuwait)
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The Business Year(TBY) recently spoke with CEO of Al Tijari (Commercial Bank of Kuwait), Elham Mahfouz, who highlighted the bank’s impressive financial performance last year, and outlined the bank’ focus on digital transformation, expanding branches, customer-centricity, environmental advocacy, social engagement, and empowering Kuwaiti youth in the coming years to ensure its continued success.
Can you provide an overview of the bank’s recent financial performance?
The Commercial Bank of Kuwait reported a net profit of KD99.1 million for the first nine months of 2023, a significant increase from KD41.5 million in the same period of 2022. The earnings per share for this period are 53.1 fils, compared to 20.9 fils in September 2022. This remarkable net profit ranks the bank third in net profitability among all Kuwaiti banks, both conventional and Islamic, and second among conventional banks.
The bank’s regulatory ratios remain robust, well above the Central Bank’s statutory requirements. These results reflect a strong operating performance driven by higher benchmark interest rates and a 5 percent increase in fee income.
Additionally, net profit benefited from lower provision charges due to loan loss recoveries from various customers. The bank’s operational strength has led to significant improvements in key performance metrics, and its loan portfolio is characterized by good quality and low risk. The majority of the portfolio consists of loans to Kuwaiti companies or international companies operating in Kuwait.
What are the key strategies implemented by Al Tijati to thrive in the financial industry?
The focus remains on digital transformation while maintaining customer-centricity through offering customized innovative solutions. The bank also intends to enhance its environmental advocacy and social engagement through a multi-layered approach that includes initiatives aimed at adopting best practices and supporting environmentally-responsible businesses amongst other endeavors.
As for the workforce, various initiatives aimed at national manpower empowerment have been launched to build a solid foundation through complementing skill sets, and developing specialized expertise essential for both, achieving the bank’s ambitious strategic goals and creating a generation of qualified game changers and capable leaders.
How do Al-Tijari’s digital innovations complement its mission to improve customer experiences and maintain a leading edge in banking technology?
Digitization has made banking more accessible and convenient for customers. Digital banking involves high levels of process automation and web-based services, potentially including APIs that enable cross-institutional service composition to deliver banking products and provide transactions. It offers users access to financial data through desktop, mobile, and ATM services. Aligned with the bank’s customer-centricity approach, it continues to expand its geographical presence in Kuwait to enhance customer convenience.
Customers can now submit contractual complaints digitally through the mobile application, eliminating the need to visit a branch and enabling digital tracking of complaints. Additionally, customers can request account closures and dormant account reactivations digitally. New features have been added to facilitate and enhance international transfers. Business Islands, now available in most Al Tijari branches, have been further enhanced to provide seamless services at a single point.
How does the bank integrate ESG principles into its decision-making processes?
The bank published its first comprehensive Sustainability Report for 2022, encompassing all ESG areas and focusing on sustainable finance, green advocacy, and social responsibility. Numerous initiatives were launched to reduce resource consumption, enhance recycling processes, and provide school bags and uniforms for needy families, among others.
The bank also supports the Let’s Be Aware campaign, in collaboration with the Central Bank of Kuwait and the Kuwait Banks Association, to spread banking and financial awareness. Recognized at the GCC level, the bank has received awards for its CSR efforts, including the Pioneering Corporate Social Responsibility project and the Labor Succession and Localization award. It also educates customers about banking information security, supports young entrepreneurs and SMEs, and finances national development projects.
What are your priorities for the coming year?
Our focus will be on keeping pace with the latest technology and digital services to further our digital transformation. This includes enhancing digital platforms and introducing new customer services. We plan to open new branches equipped with advanced technology and digital services.
Additionally, we aim to empower Kuwaiti youth through recruitment, training, and promotion and to provide sustainable finance for Kuwaiti entrepreneurs and environmentally responsible projects. We remain committed to regulatory requirements, pursuing growth in assets, profitability, and operational excellence, while staying vigilant against risks.
Bio:
Elham Mahfouz is an executive banker with extensive banking experience. She joined the Commercial Bank of Kuwait in 2000 as manager of international banking and progressively occupied top executive positions to become CEO in 2014. She is the chairperson of numerous executive committees and is currently head of the CEO’s Committee at the Kuwait Banking Association. Elham possesses extensive knowledge about the banking industry trends in Kuwait on the back of her extensive experience and proven record of accomplishment in the banking sector. She actively participates and presents discussion papers in various forums and seminars on banking and financial topics inside and outside Kuwait.
