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.
Our Journey of 50 Years
50 years back, specifically on 19th June 1960, Amir of Kuwait Sheikh Abdullah Al-Salem Al-Sabah issued Amiri Decree No. 5 for 1960 establishing a shareholding company under the name of Commercial Bank of Kuwait with a share capital of 20 million Rubia, being the second oldest Kuwaiti financial institution in Kuwait. At that time a license was granted to the founders, namely Mr. Hamad Al-Saleh Al-Humaidi, Khaled Saleh Al-Ghunaim, Fahd Co., Khaled Al-Subaih, Khalifa Al-Ghanim Co., Sayed Hamid Abdul Aziz Al-Bahr & Brothers, Marzuq Al-Jasim Al-Marzuq and Yousef Al-Ahmad Al-Ghanim to establish a Kuwaiti shareholding company under the name of Commercial Bank of Kuwait.
As shown in some archival documents of the Bank that goes back to 11th October 1960, Commercial Bank of Kuwait, following the inception date, submitted a request to the Commercial Registry Controller to get the Company registered where both Mr. Hamad Al-Saleh Al-Humaidi - the Board of Directors at that time and Mr. Abdul Aziz Al-Bahr - Deputy Chairman were the authorized signatories on behalf of the Company. Also, one of the Bank's old documents that goes back to 1960 details important information on the first Board of Directors of Commercial Bank of Kuwait and the names of Board Members, the Chairman and the Deputy Chairman. In 1962, Commercial Bank of Kuwait opened a branch in Kuwait International Airport and was the first bank that opens a branch in such vital location.
In 1971, H.H. Sheikh Jaber Al-Ahmad Al-Sabah - the Crown Prince and the Prime Minister at that time - re-opened the Bank's Head Office in Mubarak Al-Kabeer St. where Kuwaiti newspapers thoroughly covered this important event such as "Al-Ra'i Al'am" newspaper whose headline for that event read "Commercial Bank of Kuwait enters a new economic era through its newly opened Head Office" detailing that "Kuwait saw the inauguration of one of the largest financial institutions in the Region by re-opening the Head Office of Commercial Bank of Kuwait considering the event as a great move in the Bank's ten year's history noting that the inauguration of the new Head Office contributes to strengthening Kuwaiti economy through its shareholders' support and its employees' expertise".
The Crown Prince & the Prime Minister Sheikh Jaber Al-Ahmad Al-Sabah was received by the Chairman Mr. Abdul Aziz Ahmad Al-Bahr and the Deputy Chairman Mr. Khaled Al-Yousef Al-Marzuq. On the occasion of the new Head Office inauguration, a celebration was held where it started with a recitation of verses from the Holy Quran followed by a speech delivered by the Chairman who welcomed the attendants and presented the Bank's activities over the past years.
On this occasion, the Crown Prince & the Prime Minister delivered a very important speech in which he said "I have the pleasure to be among this crowd today to open the new premises of Commercial Bank of Kuwait which is on of the pillars of banking business in Kuwait. The Crown Prince & the Prime Minister presented the development the Kuwaiti banking system has seen along with the importance of Kuwaiti banks and their vital role in enhancing Kuwaiti economy as well as their significant contribution in preparing young Kuwaitis and optimizing their potentials and competence.
In the 70s of the past century, Commercial Bank of Kuwait made large strides to prove its presence locally and regionally where the Bank's Board of Directors, in 1973, decided to introduce computer technology in all Bank's activities with the objective of developing & updating its banking business. In 1976, the Bank established a training center for the purpose of qualifying the employees from all the Bank's divisions/departments and equipping them with the up-to-date systems & technologies applicable worldwide.
To further highlight this important event i.e. the 50th anniversary of Commercial Bank of Kuwait, the Bank presents some important photographs and correspondences from the archive such as a photographic image of the Bank's Head office 50 years back, a copy of the letter submitted from the Bank to the Commercial Registry Controller where the letter bears the name of the Bank only without any logo, a photograph of Sheikh Jaber Al-Ahmad Al-Sabah while opening the new Head Office in Mubarak Al Kabeer St. in 1971, other articles published by local newspapers at this time, the old logo of the Bank along with a new photograph of the Head Office as well as the new logo of the Bank.
Since its inception, 8 chairmen have chaired the Bank's Board as follows:
Mr. Hamad Saleh Al-Humaidi
Mr. Abdul Aziz Al-Ahmad Al-Bahr
Mr. Hamad Ahmad Abdulatif Al-Hamad
Sheikh Mohammed Jarrah Al-Sabah
Sheikh Ahmad Al-Salem Al-Ali Al-Sabah:
Mr. Abdulmajeed Haji Al Shatti
Mr. Dherar Khaled Al-Rabah
Mr. Bader Sulaiman Al Ahmad
On 19th June 2010, Commercial Bank of Kuwait celebrates its 50th anniversary. The past 50 years saw a number of significant & impressive achievements for the Bank, Kuwait and Kuwaiti economy in general. After 50 years, the Bank's shareholders' equity amounted to KD 440 million with its assets amounting to KD 3,6 billion as at the end of December 2009. With 55 conveniently located branches, Commercial Bank of Kuwait operates the second largest full service branch network in Kuwait.
On the occasion of the Bank's 50th anniversary, Commercial Bank of Kuwait will continue to publish the important achievements & the landmark phases in the bank's history of 50 years.
