Commercial Bank of Kuwait Continues Exceptional Performance Record
Net Profit of KD 70.5 million for 1H2008
Commercial Bank of Kuwait announced a record net profit for the six months to 30th June 2008 of KD 70.5 million; an increase of 16% on the same period of 2007.
Chairman & Managing Director Abdulmajeed AlShatti commented, "Commercial Bank started 2008 very strongly and this has continued. With a return on average assets of 3.3% and a return on opening equity of 33.3%, these results are excellent by local and international standards. Earnings per share of 55.8 fils for the period are 16% ahead of the 48.1 fils per share of 2007. Our second quarter results are 7% higher than the first quarter of this year and 11% higher than the comparative period of last year."
Chairman and Managing Director Abdulmajeed AlShatti further explained, "Operating income is up 40% on 2007. Net interest income is 30% ahead, underlying fees and commissions are up 14% due to higher trade financing with gains from dealing in foreign currencies up 29%. Operating expenses rose by 20% resulting in a cost to income ratio of 14.5%".
To
continue the diversification of its income sources Commercial Bank
completed the acquisition of Union Securities Brokerage Company (USBC)
with the aim of strengthening CBK's brokerage activities and product
offerings in the local market, in addition to providing more
distinctive and unique services for CBK clients. Chairman &
Managing Director Abdulmajeed AlShatti commented, "This also
complements the international brokerage services already available and
our online trading service Al-Tijari Bursa. Under new ownership, USBC's
market share of daily KSE turnover has increased from 3% to 7%.
Integration plans are progressing for brokerage trading facilities to
be available in four of our branches; these new facilities will provide
a convenient platform for full fledged, and real time trading of listed
shares at Kuwait Stock Exchange besides placing orders via brokers at
the branch.
The acquisition of USBC will strengthen our products
and services we provide to our customers and will position CBK to
become a leading financial solution provider.
Commercial Bank
continues to expand its retail network with its 53rd branch opening in
Al Sour Street. Further retail branches will open during the year as
the Bank continues to bring state of the art banking services to its
customers.
The Bank's ratings from Moody's, Standard &
Poor's Fitch Ratings and Capital Intelligence are second highest, in
the country and reflect its good domestic franchise, consistently
strong profitability and healthy asset quality. Moody's long-term
rating of Aa3 is the highest possible for a Kuwaiti bank.
Chairman
& Managing Director Abdulmajeed Alshatti took the opportunity on
behalf of the Board of Directors "to thank the Banks valued customers
for their trust and confidence, the Executive Management team headed by
Mr. Jamal Al Mutawa and the Banks staff for their hard work and loyalty
and shareholders for their continued support and faith. We continue to
add shareholder value, improve customer service and develop product
offerings".
Note to Editors
Commercial Bank closing share price 30th June 2008 was KD 1.480 with a market capitalisation of
KD 1.9 billion.
Commercial Bank's share price and value has performed well against the benchmark KSE Banks Index and its competitors:
Performance as at 30th June 2008
| Last 12 months | YTD 2008 | |
| CBK | +14.3% | +2.2% |
| NBK | +1.4% | -5.9% |
| GBK | -9.6% | -10.6% |
| KSE Banks Index | +9.6% | +0.6% |