CBK Operating Profit before Provisions KD 22.024 million for 1Q2010
Commercial Bank of Kuwait announced an operating profit before provisions for the period of KD 22.024 million (2009: KD 25.175 million). This was allocated as provisions against the loan and investment portfolios resulting in a net loss attributable to shareholders of the parent bank for the three months to 31st March 2010 of KD 1.454 million (2009: Net Profit KD 3.335 million). The bank has adopted a prudent policy towards building up a strong provision base and noted that results were in line with expectations.
The capital adequacy ratio at 31st March 2010 is 19.00% (31/12/2009: 18.22%) which exceeds the minimum 12% required by the Central Bank of Kuwait. The bank continues to have a strong capital base with more than twice the international ratio required by Basel II. Commercial Bank's total assets are KD 3.7 billion at 31st March 2010 (31/12/2009: KD 3.6 billion) with shareholders equity of KD 441 million (31/12/2009: KD 440 million).
The bank continues to demonstrate its cost leadership with operating expenses down 10% on 1Q2009 and staff expenses down 8% for the period. Operational efficiency is a competitive advantage for the bank which continues to maintain one of the lowest cost/income ratios with 25.16% for 1Q2010.
The bank's strategic and organisational capabilities have been reviewed with the assistance of an international consultant and presented to the new board of directors which was elected on 7th April 2010. The new strategy addresses the challenging market environment and the operating constraints brought by the economic downturn and aims for renewed profitable growth. The bank will focus on Kuwait, a market it knows and understands very well and will further strengthen existing business lines with new products and services for core customer segments. The bank will keep improving corporate governance which may require some change in the organisational structure in order to execute the strategy for the benefit of all stakeholders.
Commercial Bank of Kuwait took the opportunity to thank the bank's valued customers for their trust and confidence, the Executive Management team and staff for their hard work and loyalty and shareholders for their continued support and faith.
With 55 branches Commercial Bank of Kuwait operates the second largest full service network in Kuwait. For information on Commercial Bank of Kuwait products or services please contact 1-888-CBK or visit www.cbk.com.
