Warba Bank Q3 profit falls 28% on higher credit loss provisions

Summary

• Warba Bank reported Q3 net profit of 12.5 million dinars, down 28.1% year-on-year.
• The bank attributed the decline to higher credit loss provisions and net operating expenses.
• Total assets still grew 8.3% to 6.58 billion dinars, showing expansion alongside asset-quality pressure.

The latest

Quarterly profit at Kuwait's Warba Bank dropped 28.1% to 12.5 million dinars in the three months to 30 September 2026, down from 17.4 million a year earlier, according to the bank's disclosure to Boursa Kuwait. The lender said the weaker result stemmed mainly from a higher provision for credit losses and net operating expenses, even as its balance sheet expanded.

Details

• The quarterly numbers: Net profit attributable to shareholders fell to 12,501,000 dinars in the third quarter from 17,397,000 a year earlier, a 28.1% decline, according to the disclosure filed with Boursa Kuwait. Earnings per share dropped more steeply, down 41.1% to 2.65 fils from 4.50 fils.
• The nine-month picture: Over the first nine months of 2026 the bank posted net profit of 36,684,000 dinars against 37,731,000 in the same period of 2025, a narrower decline of 2.8%. Nine-month earnings per share fell 26.0% to 6.93 fils.
• The stated reason: Warba Bank said the lower profit for the period ending 30 September 2026 was driven mainly by a rise in the provision for credit losses and in net operating expenses. The disclosure did not break down the size of the provision charge or identify the exposures behind it.
• Revenue reversal: Third-quarter operating revenue slipped 4.7% to 32,765,000 dinars from 34,380,000, and net operating profit fell 16.7% to 18,525,000 dinars. Over nine months, operating revenue rose 10.3% to 91,916,000 dinars and net operating profit gained 8.9%.
• Balance sheet growth: Total assets climbed 8.3% to 6,575,466,000 dinars from 6,069,496,000 a year earlier, with current assets up 12.8% to 4,319,189,000. Total liabilities rose 9.8% to 5,597,078,000 dinars, and current liabilities grew faster still, up 17.0% to 5,181,653,000.
• Capital position: Total equity attributable to the parent's shareholders was broadly flat, rising 0.9% to 825,793,000 dinars. Paid-up capital stands at 472,312,680 dinars, and the disclosure stated the bank carries no accumulated losses. Related-party transactions generated revenue of 716,408 dinars against expenses of 27,249,952 dinars.
• Regulatory steps: The bank said the Central Bank of Kuwait approved its condensed consolidated interim financial information for the period ending 30 September 2026. The board meeting on the results was held on 19 October 2026, and the disclosure was filed on 9 November 2026 and published by the exchange the following morning.
• Investor briefing: As a company classified in Boursa Kuwait's Premier Market under the exchange rules issued by Resolution No. 1 of 2018, Warba Bank said it will hold its quarterly analyst and investor conference as a live webcast at 11:00 local time on Thursday, 12 November 2026.

Background

Warba Bank is a Kuwaiti Islamic lender listed in Boursa Kuwait's Premier Market, which subjects it to the disclosure and transparency requirements of the executive regulations of Capital Markets Authority Law No. 7 of 2010 and its amendments.

Between the lines

The gap between the two reporting periods is the story: nine-month operating revenue rose 10.3% while the third quarter alone fell 4.7%, and nine-month net profit slipped only 2.8% against a 28.1% quarterly drop. That points to the provisioning and expense pressure the bank cited landing largely in the latest quarter, even as assets grew 8.3%.

What's next

The analyst and investor webcast on Thursday, 12 November 2026 at 11:00 local time is the next opportunity for the bank to detail the size and source of the credit loss provisions behind the quarterly decline.

Source: Boursa Kuwait — Warba Bank disclosure (financial results form, period ending 30 September 2026)