Reference to the above subject, and pursuant to the Capital Markets Authority regulations concerning disclosure and transparency as stated in Book 10, please find attached disclosure of substantial information according to Annex (11) which includes the resolutions issued by the Ordinary General Assembly meeting of Kuwait International Bank convened on Saturday 18.3.2017 at 1600, at the Bank’s Head Office.

 

Date: 19 March 2017

Listed Company: Kuwait International Bank

Substantial Information: The resolutions of the Bank’s Ordinary General Assembly Meeting are as follows:

1. Approval and verification of the Board of Directors’ report for the financial year ending 31/12/2016.

2. Approval and verification of the Bank’s auditors report for the financial year ending 31/12/2016.

3. Approval and verification of the report of Shariah and Fatwa Board for the financial year ending 31/12/2016.

4. Attendance to the violations report as observed by the regulatory bodies and the penalties imposed on the Bank during 2016. The chairman stated that during the financial year ending 31/12/2016 two warnings were imposed by the Central Bank of Kuwait on our Bank as follows:
- A warning on 02/02/2016 because of an error in the statements provided to Credit Information Network Company (Ci-Net).
- A warning on 04/12/2016 as a result of breach of CBK instructions dated 03/11/2003 concerning the rules and regulations for classifying investment transactions with and finance accorded to customers according to Islamic investment and finance formulas, the computation of their provisions and the manner of the accounting treatment of income generated therefrom.

 

5. Approval of the financial statements and the final accounts report for the financial year ending 31/12/2016.

6. Approval of the Board of Directors’ recommendation for distribution of cash dividends of (10%) of the share’ nominal value (i.e 10 fils per share) for the financial year ending 31/12/2016, after deduction of treasury shares, on the shareholders whose names are registered in the Bank’s records on the date of the ordinary general assembly meeting. 

7. Approval of the Board of Director’s recommendation for conferring KD 325 thousands as a bonus for the Chairman and the Board members, as well as a special bonus for the chairman for an amount of KD125 thousand, for the financial year ending 31/12/2016.

8. Approval of the Board of Director’s recommendation for dispensing chairman remunerations of KD12 thousand monthly as of date of this general assembly meeting until the date of the coming general assembly meeting next year.

 

9. Approval of the Bank’s license for granting financing facilities and dealing with the Board members and related parties during the year 2017 in accordance with the Bank’s applicable policies and regulations and within the framework of the pertinent regulatory laws and instructions. A shareholder, owning 250,000 shares has protested.

10. Presentation and verification of the report on related parties’ transactions that have been, or to be executed.
- Credit facilities were extended to related parties of an amount of KD75,667,000 against collaterals amounting to KD148,386,000.
- Deposits amounted to KD11,472,000.
 As stated in the final financials presented to shareholders (Note No. 24). All transactions with related parties are within the bank’s applicable policies and protocols and within the context of the pertinent regulatory instructions without any preferential advantage. The transactions and balances with related parties have been made available to the public in the annual report of 2016 on the bank’s website. In addition, the transactions have been audited by the external auditors and the general internal auditor. A shareholder, owning 250,000 shares has protested.
As for the transactions which will be concluded, the bank is currently carrying out credit feasibility studies on case to case basis under the provisions of pertinent regulatory rules and instructions without any preferential advantage. These cases will be reflected in the coming year’s balance sheet.

11. Approval of discharging the members of the Board of Directors from any liabilities related to their legal actions during the financial year ending 31/12/2016.

12. Approval of delegating the Board of Directors to purchase, sell, and dispose of no more than (10%) of the bank’s total shares. This delegation shall remain valid and effective for eighteen months.

13. Approval of deducting 10% for the statutory reserve account.

14. Approval of deducting 10% for the voluntary reserve account.

15. Approval of re-appointing the Fatwa and Shariah Supervisory Board for the financial year ending 31/12/2017 and delegating the Board of Directors to determine their respective remunerations. The Fatwa and Shariah Supervisory Board members are as follows:
- Sheikh Dr. Khalid Mathkour AlMathkour.
- Sheikh Mustafa Hassan Zalzalah.
- Sheikh Ali Mohammed Haji Al-Jedi
- Sheikh Dr. Abdul Aziz Khalifa Al-Qassar.

 

16. Approval of re-appointing the Bank’s auditors for the financial year ending 31/12/2017 and delegating the Board of Directors to determine their respective fees. The bank’s auditors are as follows:
- Waleed Abdullah Al Osaimi from (Al Aiban, Al Osaimi& Partners) Ernst & Young.
- Bader Abdullah Al Wazzan from (Al Wazzan & Co) Deloitte & Touche.

 

Impact of Substantial Information on the Company’s Financial Position: No direct impact on the bank’s financial position.