KUWAIT: The Union of Arab Banks has named Adel Al-Majed, Vice-Chairman & Group Chief Govt Officer of Boubyan Financial institution Group, “Arab Banker of the Yr 2021”, making him the primary Kuwaiti banker ever to obtain the best recognition given by the Union for wonderful achievers within the Arab monetary and banking enterprise. Al-Majed was honored throughout the official opening ceremony of the Arab Banking Convention held in Cairo below the auspices of HE Tarek Amer, Governor of the Central Financial institution of Egypt, and in his presence together with many Arab leaders and bankers.
The Board of Administrators of the Union of Arab Banks has unanimously authorized to honor Al-Majed in recognition of his profession that contributed to the expansion of the banking trade in Kuwait and the area over the previous 4 a long time that he devoted to the banking trade whereas working for the Nationwide Financial institution of Kuwait, after which he moved to Boubyan Financial institution in 2009 to start out a brand new journey stuffed with achievements.
In his speech, Al-Majed thanked the Union of Arab Banks for honoring him, whereas stressing that each one his achievements over his banking profession extending over 40 years had been attributed to the Grace of Almighty Allah, after which to all these he labored with who had been like household to him throughout all of the departments and divisions the place he served resulting in the place he’s now.
“Over just a few years, we managed to attain double digit development yearly throughout many vital monetary metrics. By 2020, Boubyan had the second-highest variety of Kuwaiti clients and had gone from the smallest Financial institution in Kuwait to a stable quantity three. Boubyan turned a formidable drive to deal with in Kuwait’s banking sector,” Al-Majed highlighted.
Al-Majed went on describing such achievements: “After 12 years of transformation, Boubyan Financial institution’s Group now has 3 banks; Boubyan, BLME and NOMO digital financial institution, along with a Takaful insurance coverage firm, an funding firm, and a providers’ firm.”
“Reaching to the place we had been in 2021 particularly was not simple; nonetheless, we will summarize the explanations behind our success in some factors, an important of that are establishing a transparent technique, assembling an skilled govt crew, returning to the fundamentals of banking enterprise, specializing in customer support, investing in digital banking providers, investing in our human sources, and specializing in nationwide cadres.”
A 40-year banking profession
Al-Majed is a task mannequin for Kuwaiti banking leaders who joined this trade within the 70s of the earlier century, with their ambitions to determine themselves by becoming a member of a then-new trade for the Kuwaiti youths, which was not engaging for a lot of causes associated to the tough nature of the banking enterprise.
It began with the return of Al-Majed from the College of Commerce, Alexandria College, with a bachelor’s diploma to hitch NBK, the place he spent most of his banking journey. He then got here up by means of the ranks till he assumed the place of the Deputy CEO of the financial institution earlier than becoming a member of Boubyan Financial institution in August 2009.
All through his tenure with NBK, Al-Majed gained various experience in client banking, enterprise banking, regional banking providers, non-public banking, core banking operations, IT, department providers, digital banking providers, and the introduction of on-line banking providers for the primary time within the Center East along with being concerned in administrative and company governance affairs.
A cup of espresso with CEO
We may presumably say that over 10 years, particularly earlier than the COVID, Adel Al-Majed, the CEO, met each worker personally by means of a financial institution custom known as “A Cup of Espresso with the CEO”, the place Al-Majed meets each different week with ten staff from numerous departments and grades, who’re chosen by HR as per an agreed mechanism.
Throughout these conferences, which lengthen for greater than an hour, Al-Majed will get to know the financial institution staff, listens to their clear opinions and offers them the possibility to specific themselves freely whereas listening to their concepts. Such conferences succeeded in creating pleasant airs contained in the financial institution and the financial institution benefitted from some opinions mentioned in these conferences.
Adel Al-Majed maintains wonderful relationships with numerous media platforms ever since his days with NBK. It is extremely a lot to his credit score that he has wonderful relationships with all journalists and he has been speaking with them on a regular basis with none conventional boundaries equivalent to media places of work, secretaries, and many others.
Furthermore, Al-Majed is credited for being the primary CEO in Kuwait, and one of many only a few CEOs within the area, to have numerous social media accounts. This isn’t a simple factor, particularly in Kuwait, which enjoys the best ranges of freedom of expression permitting folks to specific their opinions freely over these platforms.
Al-Majed receives many each day inquiries by means of these accounts, particularly Twitter, along with messages bearing constructive criticism of the financial institution’s providers, which he accepts with an open thoughts with none objection out of his keenness on understanding the opinions of the financial institution’s clients and non-customers concerning the providers and merchandise supplied to them.
Key monetary indicators
All of the financial institution’s key monetary indicators reveal the outcomes of the efforts exerted by Al-Majed and his crew, which began displaying early by the top of 2010. Lower than two in years into the turnaround, the financial institution’s financing portfolio had shifted, and it grew by over 73 p.c, from $1.6 billion in 2008 to $2.7 billion in 2010.
From 2010 to 2021, the retail financing portfolio – that accounted for a modest share in 2008’s financing portfolio – represented 42 p.c of the financing portfolio at $7.9 billion in 2021 (a 3-fold enhance over seven years at a compounded annual development fee of 17%). Company financing greater than doubled between 2008 and 2021 to $10.8 billion.
The composition of the financing portfolio shifted, too. Monetary establishments (excluding banks) represented lower than 4 p.c of the full portfolio in 2015, down from 46 p.c in 2008. The financial institution turned worthwhile in 2010, with a internet revenue of $20 million, from a internet lack of $171 million the earlier yr. Between 2010 and 2021, internet revenue grew at a compounded annual fee of 21 p.c, reaching $106 million in 2021.
The financial institution’s belongings reached $24 billion in 2021, up from $4.4 billion in 2010, a compounded annual development fee of 17 p.c. Non-performing loans remained low at 1 p.c of whole loans impaired in 2021. From a market share perspective, Boubyan struck gold with younger Kuwaitis. By 2021, the financial institution counted practically 50 p.c of younger Kuwaitis amongst its clients. The outcomes of the concentrate on service paid off because the financial institution persistently acquired the best stage of buyer satisfaction throughout banks within the nation, and was named the Greatest Islamic Financial institution in Buyer Service for 12 years.
Over the previous years, Boubyan succeeded in finishing the acquisition of the Financial institution of London and the Center East, the place Boubyan’s present holding stands at 71% roughly, after which Boubyan Financial institution introduced the complete launch of Nomo Financial institution in Kuwait and UK as the primary Islamic digital financial institution from London which may provide its providers to Boubyan Financial institution’s clients and non-customers. By way of this acquisition, the financial institution aspires to develop into the Islamic financial institution of alternative for GCC clients in the UK as we have now integrated a set of major rules for the financial institution as part of its transformation technique following the acquisition, together with having a sustainable customer-focused model aligned with Boubyan Financial institution’s Group.