Moody's Confirms Commercial Bank's Financial Strength Rating as C-
Moody's Investors Services has confirmed the bank financial strength rating (BFSR) of Commercial Bank of Kuwait as C-. Despite the challenging operating environment, the Bank continues to be the second most highly rated bank in Kuwait. Moody's has further confirmed Commercial Bank's Foreign Currency Deposit Ratings as A1.
Abdulmajeed AlShatti, Chairman and Managing Director of Commercial Bank of Kuwait, was pleased to note that the rating takes into account the Bank's good recurring earnings power, excellent operating efficiency and solid capitalisation ratios.
As at 30th September 2009 the capital adequacy ratio of 17.97% comfortably exceeded the 12% minimum required by the Central Bank of Kuwait, the Bank continues to have a strong capital base and twice the international ratio required by Basel II.
Moody's is the world's oldest rating agency that rates and publishes independent credit opinions on fixed income securities, issuers of securities and other credit obligations.
With 55 branches, Commercial Bank of Kuwait operates the second largest full service network in Kuwait. For 24/7 information on Commercial Bank of Kuwait products or services contact 888CBK or log on to www.cbk.com.
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Commercial Bank of Kuwait Continues its Conservative Provisioning Strategy for 3Q2009
Commercial Bank of Kuwait has reported a profit before provisions of KD 99.0 million and after the Bank's Board of Directors has allocated provisions against the loan and investment portfolios the net loss is KD 1.6 million. Chairman and Managing Director, Mr. Abdulmajeed AlShatti explained that the Bank's prudent policy towards building up a strong provision base will continue during the year. Given the level of uncertainty both locally and internationally though some positive signals have appeared in the horizons, yet we have to remain carefully optimistic. AlShatti further added "We believe it is sensible to be very conservative to ensure the Bank's continuity as a leading financial institution in the State of Kuwait noting that by the end of the year the Bank will be protected by adequate provisions against any meltdown the financial crisis may leave".
Chairman & Managing Director Abdulmajeed AlShatti further explained "While we believe that the Government and the Central Bank of Kuwait have taken the right action to support the economy outlook remains uncertain, the Bank continues to work with its corporate customers to ensure their continuation through this difficult period".
Commercial Bank's total assets are KD 3.7 billion at the end of September 2009 and its shareholders equity stood at KD 444.9 million. The Bank continues to build provisions and conserve capital. As at 30th September 2009 the Bank has a total of KD 229.6 million of post liberation provisions with KD 126.8 million of specific provisions and KD 102.8 million of general provisions. In addition to the loan and investment provisions, the Bank has approximately KD 90 million of retained earnings available as an additional cushion. The capital adequacy ratio of 17.97% comfortably exceeds the minimum 12% required by the Central Bank of Kuwait; the Bank continues to have a strong capital base, and twice the international ratio required by Basel II.
Commercial Bank of Kuwait is the 2nd highest rated bank in Kuwait with Capital Intelligence, Fitch Ratings, Moody's and Standard & Poor's.
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".
With 55 branches Commercial Bank of Kuwait operates the second largest full service network in Kuwait. For 24/7 information on Commercial Bank of Kuwait products or services contact 1888CBK.
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