Commercial Bank of Kuwait Operating Profit before Provisions KD42.0million for 1H2010
Commercial Bank of Kuwait announced an operating profit before provisions for the period of KD42.046 million (2009: KD66.911 million). This was allocated as provisions against the loan and investment portfolios resulting in a net profit attributable to shareholders of the parent bank for the six months to 30th June 2010 of KD0.840 million (2009: KD0.894 million). The bank has adopted a prudent policy towards building up a strong provision base and noted that results were in line with expectations.
In his comment on the financial results for the period Chairman Mr. Bader Sulaiman Al Ahmed said that Commercial Bank is currently reviewing its present and future business plans in line with a very well defined strategy that aims at confirming the Bank's presence in corporate and retail markets. Al Ahmad further added that the improvement of the banking sector's performance in general and Commercial Bank in particular is strongly dependent on the improvement of the economic and financial environment emphasizing that the Bank continues its effort to improve the quality of its lending and investment portfolios.
The capital adequacy ratio at 30th June 2010 is 19.10% (31/03/2010: 19.00%) 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 KD3.6 billion at 30th June 2010 (31/03/2010: KD3.7 billion) with shareholders equity of KD438.6 million (31/03/2010: KD441.2 million). The bank continues to demonstrate its cost leadership with operating expenses down 8% on 1H2009 and staff expenses down 5% for the period. Operational efficiency is a competitive advantage for the bank which continues to maintain one of the lowest cost/income ratios with 26.7% for 1H2010.
The bank was pleased to receive from Citi Global Transaction Services (GTS), a business unit of Citigroup the Straight Through Processing Award which recognizes its leadership and excellence in global payment capabilities. The prestigious Citi Performance Excellence Award is presented to leading financial institutions worldwide which have state-of-the-art international electronic payment services and meet stringent correspondent banking and processing accuracy criteria.
The bank celebrated its 50th anniversary being established by Amiri Decree No.5 issued 19th June 1960, the second banking licence to be granted in Kuwait. The bank has made significant progress over the past 50 years with a proven strong franchise in retail and corporate banking. 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. Special thanks were given to the local print media for their extensive coverage and support of the bank's 50th anniversary celebrations.
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.
