National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported a record net profit of USD 501 million (KD 144.3 million), or USD 0.25 per share, during the first six months of 2007. The Bank also reported 3.4% return on average assets and 31.8% return on beginning equity, both demonstrating the strong earning power of NBK.
Ibrahim Dabdoub, Chief Executive Officer of NBK, said “we are seeing another excellent year at NBK, which demonstrates our proven ability to generate solid profit growth year after year. Our first half results reflect strong momentum across all business lines, supported by growth in business volume from new and existing clients, industry leading service quality, and market share gains in our core businesses. Once again, we have been able to leverage our strong financial standing and liquidity, while staying disciplined in managing liabilities, costs and risks. We are especially proud of our achievements as the improvements we have seen are purely from operational activities, while we have another USD 70 million in unrealized profits from various long-term strategic investments that were not included in the net profit figure.”
“NBK’s industry leading returns result from the careful diversification of our revenue sources and from our solid franchise in Kuwait and the region,” added Dabdoub. “I am confident that we can maintain our growth momentum and exceptional performance in the coming period, as we are starting to see the benefits from our investments in the regional expansion of our activities, as well as in people, technology, channels and systems. These investments, that are still on-going, have provided us with a strong foundation for future growth,"
Commenting on the bank’s strategy to grow regionally, Dabdoub said, “We are very pleased with the positive results from the markets we entered in recent years. While our international network has long played an important role in diversifying our income sources and supporting our domestic businesses from treasury, trade finance and corporate banking to private banking and wealth management, our expanding regional presence allows us to benefit from emerging growth opportunities in highly promising markets,” noted Dabdoub.
NBK is committed to an ambitious regional expansion strategy whose results have been visible in recent years. Regionally, the bank is already present in Saudi Arabia, Qatar, Jordan, Iraq, Bahrain, and Lebanon. The bank has also received a license to operate in the UAE, where a branch is expected to open soon. NBK’s international network also covers New York, London, Paris, Geneva, Singapore, Vietnam and Shanghai, giving it an edge over regional competitors. The Group's investment banking arm, NBK Capital, is also present in Turkey, Dubai as well as in Kuwait.
International expansion has not been at the expense of growth in NBK’s home market. The bank operates 63 branches in Kuwait and has plans to continue expanding its network in the coming years. Kuwait has seen unprecedented growth in the demand for banking services that has allowed NBK to grow its customer base accordingly. NBK’s business has also benefited from the introduction of a number of new products, which have deepened customers’ banking experience.
NBK’s long-term credit rating was upgraded by Standard and Poor’s in May 2007 to A+ from A, a reflection of the bank’s strong financial position and long term positive outlook. This was in line with the solid reputation NBK has enjoyed over the years, having maintained the highest credit ratings of all banks in the region and emerging markets from the rating agencies Moody's, Standard & Poor's, and Fitch Ratings. NBK’s solid position is supported by its high capitalization, prudent lending policies, and its systematic approach to risk management, in addition to the Bank's recognized management stability and excellence.
NBK’s total assets reached USD 31.6 billion at the end of June 2007, while its shareholders’ equity stood at USD 3.3 billion.
© 2007 Al Bawaba (www.albawaba.com)
