National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, announced a record net profit of USD 193 million (KD 56.5 million) during the first three months of 2006 compared to USD 152 million for the same period last year, an increase of 27.4%. The Bank also reported an improvement in return on average assets to 3.4% and return on beginning equity to 34.9% compared to 32% last year.
Commenting on NBK’s results, CEO of NBK, Mr. Ibrahim Dabdoub, said that “The Bank is off to a strong start of yet another exceptional year. During the first quarter of 2006 our financial results were outstanding, with record profits, exceptionally strong growth and superior returns to shareholders.” The quality and diversification of our earnings, and superior credit ratings, the highest among all emerging market banks, are proof of our success in managing risk and cost."
Dabdoub added “NBK distinguishes itself in many ways, not the least of which is our excellent asset quality and a long-standing, prudent credit culture. This carries on to the quality of our earnings, where our reported earnings include only realized profits coming primarily from our core businesses.” NBK's operating income topped USD 298 million, rising by 29% from a year ago.
The operating environment remained on the whole very positive for banking services, as all indicators pointed to a continuation of momentum built in 2005, boosting the Bank’s business at all levels. Kuwait and the region continued to enjoy solid economic growth, high business confidence, and strong consumer spending and investment, fuelling demand for credit. NBK's interest margins benefited from the rise in interest rates, and its sound management of liabilities.
"We leveraged our solid franchise and fundamental strengths to fully capitalize on the favorable business environment by expanding our client base in all of our markets. As a result, we were able to generate balanced growth across business lines and regions," said Dabdoub. "Our clear and focused vision helped us achieve our success of providing value to customers and maintaining strong relationships built on trust."
Dabdoub also stressed on the success of NBK's ambitious regional strategy. "We are very pleased with the positive results from the new markets we entered recently, whether Qatar, Jordan, Iraq or Shanghai, alongside our established network in major financial centers. While our international network has long played an important role in supporting NBK's 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."
NBK stands out in Kuwait and among Arab banks in terms of its regional and international network, which includes branches, subsidiaries and representative offices in New York, London, Paris, Geneva, Lebanon, Jordan, Bahrain, Qatar, Iraq, Singapore, Vietnam and Shanghai, with other ambitious plans for continued regional expansion. NBK will be inaugurating its first branch in the Kingdom of Saudi Arabia this month.
NBK's total assets reached USD 24.4 billion (KD 7.1 billion) at the end of March 2006, while its shareholders' equity stood at USD 2.4 billion (KD 706 million).
© 2006 Al Bawaba (www.albawaba.com)
