Boubyan Bank - Vice Chairman Resigns To Become Chairman of Warba Bank

Boubyan announced on the KSE today that its Vice Chairman Mr. Jasaar Dakheel AlJasaar had resigned as he had been elected Chairman of Warba Bank.  He submitted his resignation effective 23 February.  However, the Board decided to push the effective date to the coming ordinary general meeting of shareholders. Presumably to avoid having to nominate an interim Vice Chairman and appoint a new board member.  As posted earlier, there is anticipation that NBK will be inserting some of its "people" on the Board given its 40% shareholding.  Nominations for the board opened today (2 March) and extend to 16 March.

Text of press release (Arabic only) below.

[9:53:52]  ِ.استقالة نائب رئيس مجلس إدارة بنك بوبيان ‏
يعلن سوق الكويت للأوراق المالية بأن بنك بوبيان قد أفاده بأستقالة ‏
السيد / جسار دخيل الجسار ، وذلك نظراً لاختياره رئيساً لمجلس ‏
إدارة بنك وربة وأصبحت استقالته نافذه من تاريخ 23-2-2010 ‏
كما أفاد البنك بأن مجلس الإدارة الحالي قد تقدم بأستقالته التي ستصبح ‏
نافذه بتاريخ انعقاد الجمعية العمومية المقبل علما بأنه تم الإعلان عن فتح ‏
باب الترشيح لانتخابات مجلس الإدارة في الفترة من 2 إلى 16 مارس 2010 .‏

Warba Bank - Delay in Founding General Meeting to February 2010 - Rationale and Consequences

AlQabas reports that the KIA has decided to postpone the founding general meeting of Warba until February 2010 for a variety of reasons.

1. First, apparently all the requirements for the general meeting and agenda are not yet decided or completed.   The most important of these include the final announcement of the establishment of the bank though a decision of the founding shareholders, appointment of the board of directors, appointment of (financial) auditors as well as Shari'ah supervision committee, delegation of authority to the board to issue fractional shares resulting from the allotment of shares.
   
2. Second, the delay to February 2010 will mean that WB will not have a full 12 month fiscal year in 2010.  Therefore, that it will not be eligible to be listed on the KSE until 2012. since  a new listee must have at least one profitable fiscal year. During this almost two year period, it's expected  that the stock market will recover and the price of the shares will trade at an appropriate level.  Not being listed will also mean that the shares cannot be easily traded, thus, forcing Kuwaiti citizens to hold on to their allocated shares.
   
3. Third, the additional period will allow the new management time to establish the bank -- it will take several long months just to properly set up  the internal organization of the bank.  And as well to  establish a solid track record in line with a boost from the anticipated improvement in the economy the economy.

Warba Bank Kuwait - Update

AlQabas reports that there is great excitement in the Islamic banking community in Kuwait and an apparent rush to the doors of Warba to secure positions, ascribed to the belief that given the KIA ownership stake the bank will have a favored position compared to other banks.

As a keen student of Islamic and other banking, AA personally thinks that many see a position in the new bank as a way to step up the career ladder. 

As one old teacher of AA's once put it:  "It's pretty much an undisputed scientific fact that the most sensitive human organ is the pocketbook".  I don't think he meant that as a complimentary statement though.

Warba Bank - Founding General Meeting 21 December 2009

Probably I'm one of the few non Kuwaitis who has been wondering when Warba Bank would be officially launched.

Earlier this year, the Kuwaiti Government announced the formation of this Islamic Bank with a rather unique feature.  The Kuwait Investment Authority will subscribe for 100% of the capital KD 100 million (US$350 million).  Then 76% of the shares in the bank will be distributed among Kuwaiti citizen alive on the date of the official launch of the bank.

It seems the founding general meeting will be held on 21  December as the Council of Ministers has given the formal authorization for KIA to go ahead with the meeting.  A Board will be elected.  Then each Kuwaiti citizen will get his share allotment.

(Clearly Warba is a place name as the standard dictionary definition would not do for a bank - Islamic or otherwise).