National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported a record net profit of USD 447 million (KD 129 million), or USD 0.25 per share, during the first six months of 2006. Compared with the same period last year, earnings were up by 32%. The Bank also reported an improvement in return on average assets to 4.1% and return on beginning equity to 39.7%, both demonstrating the strong earning power of NBK.
Ibrahim Dabdoub, Chief Executive Officer of NBK, said “We are very pleased with our accomplishments and our continued ability to generate record profits year after year. Our results this year reflect positive momentum across all business lines, manifested in underlying growth in business volume from new and existing clients, industry leading service quality, and market share gains in our core businesses. Underlying this excellent performance also lies our ability to leverage our strong financial standing and liquidity, while staying disciplined in managing liabilities, costs and risks.”
“NBK is proud of the industry leading returns it generates for its shareholders, which benefit from the diversification of our revenue sources and our solid franchise. I am confident that we can maintain our growth momentum and exceptional results 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."
NBK is pursuing an ambitious regional expansion strategy. In the last two years, the Bank acquired a 20% stake in the International Bank of Qatar and a 75% controlling share in Credit Bank of Iraq. It also set up new operations in Jordan, Saudi Arabia and China (Shanghai). NBK’s international network also covers New York, London, Paris, Geneva, Lebanon, Bahrain, and Singapore, in addition to the largest local network of 55 branches within Kuwait.
Commenting on the regional expansion initiatives, Dabdoub said, “We are very pleased with the positive results from the new markets we entered recently. 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 has consistently earned the highest credit ratings in the Middle East by international agencies including Moody’s, Standard & Poor’s and FitchRatings, on the basis of its healthy performance, high asset quality and strong capital base. Rating agencies also cite the strength and depth of NBK’s management and its clear strategy as fundamental strengths underlying the Bank’s superior ranking. These strengths have also earned NBK recognition as the Best Bank in the Middle East in overall performance and across different activities from reputable financial publications such as Euromoney and The Banker.
NBK’s total assets reached USD 22.9 billion at the end of June 2006, while its shareholders’ equity stood at USD 2.6 billion.
