Commercial Bank of Kuwait Operating Profit before Provisions
KD 78.9 Million for 3Q2011
Commercial Bank of Kuwait announced an operating profit before provisions for the period of KD 78.866 million (2010: KD 68.621 million) an increase of 14.9%. 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 nine months to 30th September 2011 of KD 8.289 million.
Commenting on the financial results for the period, Chairman Mr. Ali Yousef Al Awadhi said that the planned strategy, to be a leading retail bank in Kuwait and to be the best bank for commercial business while outperforming our peers in profitability, is moving well ahead. Al Awadhi noted that other performance indicators showed a return to profitable growth with net interest income of KD 69.7 million up 9% on last year and operating income up 9%.
Al Awadhi went on saying that Commercial Bank is moving well ahead according to its planned strategy that aims at strengthening the bank's financial position, reduce the percentage of NPLs and generating income from the bank's core business activities. Al Awadhi explained that Commercial Bank continues to develop and upgrade its service and product offerings to attain customers' utmost satisfaction. Al Awadhi further explained that the downward trend is still predominating the performance of Kuwait economy as a result of weak government spending, sluggish performance of KSE and related negative impact on assets values, noting that the improvement in the economic and business environment will positively reflect on the banking sector and on Commercial Bank. Commercial Bank's financial position and balance sheet is strong with additional judgmental provisions that provide the bank with more comfort when taking up businesses, added Al Awadhi.
The bank continues to demonstrate its cost control leadership with operating expenses down 9% on 3Q2010. Operational efficiency is a competitive advantage for the bank which continues to maintain one of the lowest cost/income ratios with 20.87% for 3Q2011.
Commercial Bank's total assets at the end of September 2011 reached KD 3.752 billion (9/2010: KD 3.639 billion) with shareholders equity of KD 539.9 million (9/2010: KD 464.21 million). The capital adequacy ratio at September 2011 is 20.75% (9/2010: 19.88%) 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 of Kuwait takes 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.
Commercial Bank of Kuwait provides its corporate and retail customers with wide spectrum of banking products and services through one of the largest full service branch networks in Kuwait. For information on Commercial Bank of Kuwait products or services please contact 1-888-CBK or visit www.cbk.com.
