National Bank of Kuwait (NBK) reported a record net profit of USD 337 million (KD 98,3 million) during the first six months of 2005 compared with USD 223 million for the same period last year, a record increase of 51%. Return on assets and return on equity also rose to 3.6% and 35.3% respectively, marking an outstanding performance by international standards.
Mr. Ibrahim Dabdoub, CEO of NBK, commented “We are proud of our record increase in profits during the first half of the year. Underlying this remarkable performance is the continued momentum across all business lines and an ability to leverage our strong financial position and liquidity. NBK’s sound business strategy enabled us to fully exploit our potential in a favorable and active regional environment.”
“NBK continues to generate industry leading returns thanks to the diversification of revenue sources and our strong franchise. I am confident that we can maintain our momentum and exceptional results in the coming period, but more importantly maintain our focus on meeting the evolving needs of our customers through all the stages in their lives with an ever widening array of innovative products and services.”
NBK is pursuing an ambitious regional expansion strategy. Last year, the Bank acquired a 20% stake in the International Bank of Qatar together with full management control. Also in 2004, NBK opened a new branch in Amman, Jordan, and a tenth branch in Lebanon. NBK’s international network currently spans New York, London, Paris, Geneva, Singapore, Lebanon, Jordan, Bahrain, Qatar and Iraq. Besides, the Bank boasts the largest local network of 48 branches within Kuwait.
NBK has the highest credit ratings amongst all banks in the Middle East by international agencies including Moody’s, Standard & Poor’s and FitchRatings, in recognition of its healthy performance, fine asset quality and solid capital base. Rating agencies also praise the depth and stability of NBK’s management and its clear strategy as fundamental pillars for the Bank’s superior ranking.
NBK’s total assets reached USD 18.6 billion at the end of June 2005, while its shareholders’ equity stood at USD 2.3 billion.
