MARKETKuwait International Bank is a leading Kuwaiti Islamic financial institution with a heritage dating back to 1973. Initially founded as a real estate bank, KIB grew to dominate that sector before embarking on a 2007 conversion into a Shariah-compliant institution offering the complete set of banking services.KIB employs its rich expertise and innovative approach to seize new market opportunities. It is a bank that prides itself in its prudent nature yet does not hesitate to take well-measured risks when it comes to further penetrating the market and entering rewarding new segments.With 56.7% of the local population under the age of 25, KIB has made youth segments a major area of interest having already introduced tailored products and developed a youth-focused CSR program. On a similar note, KIB has embraced technology as a means to further engage with customers and gain insights into market trends. Its social media presence is expanding and it has identified E-channels as key tools in delivering the ideal customer experience.Kuwait is pursuing a $US 130 billion national development plan that is giving rise to new opportunities for innovative local banks such as KIB. The bank is leveraging its resources, reputation and capabilities to pursue projects that match its strengths and strategic objectives.KIB is constantly working to identify new opportunities to build brand awareness internationally. The bank’s fully-fledged Investment Banking Department has created innovative structures to accommodate the needs of customers seeking to invest abroad while simultaneously mitigating risks associated with regional instability.

ACHIEVEMENTSIn 2014, KIB reported the third consecutive year of double-digit growth in asset value and

operating profit. The same year saw a continued reduction in risk evidenced by Fitch Ratings Agency’s upgrade of KIB’s long-term and short-term credit ratings from A- to A+ and from F2 to F1, respectively. These achievements culminated with KIB being named 2014 Best Islamic Bank in Kuwait by World Finance Magazine.On an individual level, KIB has earned international recognition for its contribution to the market. The year 2014 saw KIB’s Chairman of the Board, Sheikh Mohammad Al-Jarrah Al-Sabah win two prestigious awards; The Arab Golden Coin - Pioneer in Banking by the Union of Arab Banks, and Business Leadership and Outstanding Contribution to the GCC Economy by World Finance. Separately, KIB’s Deputy General Director of Support Services, Lamya Barak Al-Tabtabie was named Best Executive Manager in IT for the MENA region by Women in Technology, an American organization dedicated to empowering women in the information technology field worldwide.With KIB’s key employees winning numerous recognitions, it is clear that the bank’s strategy to invest in and support its people has paid off.

HISTORYEstablished in 1973 under the name Kuwait Real Estate Bank, KIB enjoys a unique history as a successful, constantly evolving bank keen on playing a leading role in the market. By initially focusing on the real estate sector, the bank developed a strong core competency that enabled it to become a national pillar in the field. Its Real Estate Appraisal Division became a key reference for numerous governmental authorities, banking institutions, investment and real estate companies. In 1986, the division was approved by CBK to appraise debts settlement real estate thus rendering it one of the few entities in Kuwait capable of providing that service. The bank continued to flourish within the real estate subset of the banking field, introducing property management services, legal services, public auctions and more. In 2007, KIB moved forward with the milestone decision to convert into an Islamic financial institution. The move would see the bank operate in full compliance with Islamic Shariah in addition to diversifying into retail and corporate banking. This remarkable conversion from conventional to Islamic was communicated through a unique launch campaign using the phases of the lunar crescent to illustrate the process.Throughout the global financial crisis of 2008-2009, KIB reinforced its reputation as a pillar to the Kuwaiti banking sector when it gained CBK approval to undertake real estate appraisal for the companies governed by Financial Stability Law (Law No. 2 of 2009). Moreover, it was approved

as one of the entities authorized to evaluate the projects of Partnership Technical Bureau affiliated to Ministry of Finance, in accordance with Law No. 7 of 2008.In 2011, KIB embarked on a bold three-year expansion strategy to restructure and reactivate various departments, strengthen its service quality and bolster its image in front of its clientele through a series of rebranding initiatives.The result saw KIB experience newfound success in key sectors, including retail & commercial banking, with the bank positioned to seize a new tier of opportunities across the region.

PRODUCTKIB provides the full array of banking solutions in compliance with Islamic Shariah. Retail products include deposits, credit card and pre-paid card services, tailored accounts, Murabaha, Musawama financing and investment accounts. These products are enhanced with unique privileges and discounts stemming from partnerships with leading merchants inside and outside of Kuwait.In recent years, KIB has introduced new products following customer segmentation studies resulting in deeper market penetration. Among them are the ladies’ Rimas Account along and the Al Moyassira Visa Credit Card which cater to the unique needs of their respective segments.

36

On the commercial side, KIB offers real estate financing in addition to property management and real estate appraisal services, all of which represent a unique core competency that the bank developed over the course of forty years. Furthermore, KIB provides contracting financing, project financing and corporate financing to clients of all sizes.Recognizing that all touch points with its customers serve as essential compliments to its product offering, KIB has invested heavily in growing and equipping its branch network with modern facilities and highly-trained customer service personnel. In parallel, digital channels such as KIB’s website and smartphone application act as strategic value providers to customers.

RECENT DEVELOPMENTSReflecting its constant state of progression, KIB unveiled a simplified logo projecting a powerful corporate character deeply engrained into the bank’s culture.On the operations front, KIB has made investments in new sectors related to Construction & Building Materials, Oil & Gas, Energy, Trade and Infrastructure Works while catering to Small & Medium Enterprises (SME’s) through specialized banking services.KIB is also taking concrete steps to adhere to new standards of corporate governance as outlined by the Central Bank of Kuwait and international bodies. The bank was among the first to implement the requirements of Foreign Accounts Tax Compliance Act (FATCA) and has introduced new measures to combat money laundering and financing terrorism.Part of KIB’s role as a leading Islamic and Kuwaiti financial institution is to operate in a socially responsible manner. From this belief, KIB has

established a CSR program with the primary focus of enhancing financial responsibility amongst the youth. The program encompasses activities such as school visits, events at KIB’s facilities and sponsoring youth-focused initiatives. Additionally, the bank frequently supports various causes expected to positively impact all sectors of society.

PROMOTIONKIB’s promotional campaigns focus on articulating value, peace-of-mind and credibility to target segments while rewarding its current customers. During the holy month of Ramadan in 2014, KIB launched a powerful image campaign entitled “I Always Choose the Best” reinforcing its ranking as 2014 Best Islamic Bank in Kuwait to a wide scope of audiences. “I Always Choose the Best” targeted families, businesspeople, and other segments with a confident and credible message.On the tactical side, KIB launched the “Double Your Salary” campaign which entered customers with a KIB salary account into a draw for the chance to double their monthly salary for a year. Following the excellent response from the campaign, KIB decided to continue to carry it into 2014.Separately, KIB’s 2013 “Your Gateway to Gold” Visa card campaign was successful in attracting a new wave of customers by offering the chance to win up to one half kilogram of gold for every KD 10 spent with Al-Dawli Visa cards. The offer was also successful in cross-selling to existing customers who did not previously hold a credit card with KIB.

On a similar note, KIB works closely with its global partners to promote new benefits to its clientele. As of 2013, Al-Dawli Visa cardholders are entitled to unrestricted access to VIP lounges in major airports around the world. By making the rare move to extend the privilege to Gold cardholders, KIB reinforced its commitment to provide all tiers of its customer base with the most rewarding banking experience. KIB’s cooperation with Visa has also resulted in special offers on tourism packages in over 100 cities around the world. The international focus of KIB’s promotional campaigns reflects the bank’s understanding of its customers’ needs and expectations in today’s globalized world.Additionally, KIB has leveraged its powerful position in the market to offer customers Al-Dawli Mall, a generous bouquet of discounts, packages and privileges provided in partnership with retailers and organizations appealing to all segments. Al-Dawli Mall’s popularity has grown significantly and now contains numerous participating retailers.

BRAND VALUESKIB is positioned as a modern, vibrant and innovative Islamic institution for all segments. It strives to deliver superior value products and services through deep market understanding and utmost commitment to the high standards set by senior management and the Board of Directors.The corporate culture at KIB is very people-centric. KIB frequently holds seminars and training programs geared towards further developing the skills and character of employees. Communication is very important at KIB. Significant effort is put towards obtaining various types of customer feedback in order to improve the experience of banking with KIB. Moreover, KIB enjoys a low power distance between KIB staff and management as a means to facilitate communication and cooperation.

www.kib.com.kw

KIB’s Chairman of the Board, Sheikh Mohammad Al-Jarrah Al-Sabah receives the award for Business Leadership and Outstanding Contribution to the GCC Economy by World Finance.

Things you didn’t know aboutKIB

• KIB was named 2014 Best Islamic Bank in Kuwait by World Finance Magazine.

• KIB is one of the only two Kuwaiti banks authorized to conduct real estate appraisal services.

• KIB has a unique CSR vision to educate the youth on financial responsibility.

• KIB’s 2007 conversion into an Islamic bank marked the first-ever instance of a real estate bank becoming a Shariah-compliant institution.