Who is better known as Boubyan Bank, it is established by the Kuwait state in March 13, 2004 (13bdDH 3/2004) and since then it has became a leading islamic financial institution in the country. Banking activities are solely focused based on the principles of Sharia law and the bank's service offer includes a broad range of financial services that meet customer's demands. The company has been renowned for its excellent customer service, and is also awarded 'the best private sector institution in Kuwait'. The award has been given to the institution for its value to the customer service.

Creativity stands for Boubyan Bank as being another pillar of its strategy. Their many years of service to Kuwait revealed them as leaders in the realm of e-banking and digital banking, providing solutions that are way ahead of competitors. The creation of convenience is not the only purpose this commitment to technological advancement serves; rather, a bigger chance for a new breed of affordable financial services for their customers is also made possible.

IRB Al Baab provides a number of comprehensive end user options, which include personal, private, and business banking solutions. They provide customers with wide range of products that include credit cards, consumer credit, home mortgage, and plenty of investment chances.

Established by Emiri Decree No.8 on the virtue of public good, it comes into existence in 2004. 88 Boubyan therefore prides itself as the first ever Sharia-compliant bank in Iraq and the Middle East to obtain license under the Islamic Banks Law. All the time they've been in operation the bank has gone through the impressive growth cycle, and has become one of the largest Kuwaiti banks that comply with the rules of socially responsible banking.

Additionally, Boubyan Bank is supported by some solid partnerships of which National Bank of Kuwait (NBK) is one of the largest participant banks. This partnership tact not only provides Celadon with stability but also boosts its market competitiveness.

Boubyan Bank: Legal Form of Business

Boubyan Bank is functioning as a Public Shareholding Company (K.S.C.P) and is a company incorporated in the State of Kuwait. This kind of incorporation indicates that there are the shares held by investors. The bank's ownership is divided into this bit by that bit.

Public: The value of the bank's shares is traded in the Boursa Kuwait Stock Exchange and conveys the opportunity for people and organizations to purchase or sell the ownership stakes.

Shareholding Company (K.S.C.P): This legal status marks the shares as transferable which means that the ownership of each unit is fractional to the company. Owners of a bank have voting (and) owning interests or receive dividends, if the bank becomes profitable.

Based on the provided Consolidated Statement of Profit or Loss for Boubyan Bank for the year ended December 31, 2022, here's an analysis of its financial health:Based on the provided Consolidated Statement of Profit or Loss for Boubyan Bank for the year ended December 31, 2022, here's an analysis of its financial health:

Profitability:

• Net Profit: The real profit net of the bank in 2022 was 54,273,000 KD which is only a bit (13.2%) larger than 47,955,000 KD in the previous year. Anymore, this signal that the net worth is increasing.

• Operating Profit: Besides, Operating profit before the revaluation also almost the same amount in 2022; it was recorded at KD 100,568million versus KD 100,543million in 2021. This can be capturing that the core of the bank's operations is secure and tightly producing.

• Profitability Ratios:

o Return on Equity (ROE): Also, though ROE (Return on Equity) calculation isn't shown herein, it can still be derived from the given net profit and shareholders' equity. A bigger ROE suggests the arrange higher profits relative to invested shareholders' parts.

o Net Profit Margin: This rate consisted of the quotient between net profit and net operating income and it approximated to 27% in 2022. This is evidenced by the fact that the bank maintains a comparatively large profit margin on the basis of its core operations.

Other Key Points:

• Income Sources: The source of the bank's income is constituted by the Murabaha and other Islamic financing activities, net fees and commissions in cut.

• Expenses: Personnel Expenses, Selling, General and Administrative Expenses as well as Depreciation are the three primary types of expenses.

• Provision for Impairment: This bank incurred a huge impairment provision for 2022 (KD 43,607 mil). The operating income dropped off as a result after the impairment provision

was taken into account. It may be attributable to items as diverse as bad loans or asset discounts.

Overall Financial Health:

To the fact that Boubyan Bank has a positive profitability shows up in growing profits for 2022, ROE should be considered as a more comprehensive parameter because it would give us a better idea of its financial health. As well, the high amount for the impairment in the 2022 is one of the primary areas that requires more information as to the reason behind it. With regard to this,the tend of the bank being in a financially stable position, though, is more likely.

RATIO ANALYSIS

Liquidity Ratios:

• Current Ratio (1.108): It is a measure of liquidity that tells us the amount of current assets compared to the amount of short-term liabilities. If the ratio is good, it means the bank has enough cash, receivables and inventory to cover its short-term obligations such as debt due this year. A value above 1 means that morale is in a positive state.

• Quick Ratio (1.108): Liquidity ratio like the current ratio, but not including inventory as the current assets, it's a more skeptical assessment of liquidity. A value of above unity means that Boubyan is solvent and is able to pay off its short-term obligations even when they might require to sell some of the inventory with speed.

Solvency Ratios:

• Debt-to-Equity Ratio (7.044):

• This ratio is known as the bank's Debt / Equity ratio. It shows the bank's total debt to its total shareholders equity. The ratio of lower means the bank's financial condition is more powerful. While 7.044 is on the higher part among the peers, considering industry benchmarks for banks, where banks may be on the safer side Owing to their business model; in light of this then, we need to make 7.044 on the safer part among bank peers. While this high ratio can be an indicator of over reliance on debt financing, it is important to review it over time to ensure the need and level of solely relying on debt financing reduces.

• Debt-to-Assets Ratio (0.8757): The debt to equity ratio expresses how much of the bank's total credits are financed with debt. An indication of the value 0.8757 conveys that the proportion of the assets which are owned by debts is 87.57 percent while that owned by equity is 12.43 percent.

Profitability Ratios:

Return on Assets (ROA) (0.0069): This ratio is used to evaluate the bank's ability to produce a profit in comparison with the bank's total assets. The lower ROA could mean the bank is not able to generate high profit rate from the assets than it is currently.

Return on Equity (ROE) (0.0554): This ratio, in turn, expresses the bank's capacity to use shareholders equity in meeting its objectives. The ROE of less than 1 suggests that the bank is neither efficiently using the equity in generating the profits nor it is generally achieving the returns on investment that are in patient investors' expectations.

Conclusion

Boubyan Bank demonstrates financial stability by accumulating a steady net profit, and raise in its liquidity ratios. It is these ratios - ROA and ROE - of the company that are below the averages. In order to obtain a definite assessment, industry benchmarking is required. Though high debt to equity ratio defies for more investigation, the considerable allowance for impairment were mentioned in 2022 to guide the researches. To summarize, Boubyan's financial data is reflecting a positive trend, however a thorough analysis that involves additional ratios and industry comparisons is required to have a full picture of its long-term financial performance.