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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%".

Commercial Bank's total assets reached KD 4.3 billion at the end of June 2008 and its shareholders equity stood at KD 475.6 million.

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".

With 53 branches, Commercial Bank of Kuwait operates one of the largest full service networks in Kuwait. For 24/7 information on Commercial Bank of Kuwait products and services contact 888CBK or visit www.cbk.com.

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

As a leading financial institution that always receives the appreciation from the business community in which it operates, Commercial Bank of Kuwait was honored by Al Mazaya Holding Company in recognition of the Bank's significant role in supporting the national companies and enhancing the economic and development drive in the country.

Mr. Loai Mukamis - GM, Corporate Credit at CBK received a commemorate shield from Mr. Rashid Al Nafeesi - Chairman, Mazaya Holding Company at the reception organized to mark the convention of the Third Financial Transparency Conference. Mr. Mukamis expressed his happiness for the success of the conference's activities indicating that the Bank places great emphasis on all activities that support the Kuwait economy.

Mr. Rashid Al Nafeesi expressed his thanks & appreciation for the leading role undertaken by Commercial Bank since the incorporation of Mazaya Holding Company where the success of the Company is attributed to CBK's success.

from his part, Mr. Mukamis confirmed that the Bank's endeavors to contribute and participate in all the economic sectors comes out of its belief that economy is the cornerstone for building an ideal developed country. Mr. Mukamis added that horning Commercial Bank of Kuwait honor will stimulate the Bank towards further progress and success.

On 24.04.2008, a delegation of Wachovia Bank senior executives from Dubai & the USA, headed by Mr. Michael Heavener, Executive Vice President, presented to CBK, a "Quality Recognition Award for 2007", for the achievement of a high quality Straight Through Processing (STP) rate of the US Dollar payments in excess of 98%, routed through CBK's correspondent account held with Wachovia Bank, during the year 2007.

In the course of the further discussion, Mr. Heavener also marked the high dynamism of bilateral cooperation between Wachovia Bank and CBK in other fields of banking business.

Mr. Ali Al-Mudaiheem, (General Manager - Retail & Virtual Banking Division), emphasized that this award was a natural result of serious investment that CBK had made in its payment systems, and its aspiration to satisfy its customers' needs.

Earlier in 2006, Wachovia Bank and Citibank have also honored CBK for high quality of payment formatting and exceptional STP rate.

Mr. Al-Mudaiheem also added that such an award serves as an obvious recognition of CBK's success in improving quality of payment formatting, use of efficient settlement techniques and permanent attention to the needs and requirements of its customers.

Under the auspices of Sheikha Nouf Salem Al Ali - Manager, Adv. & PR Department at CBK, the Exhibition of "Show Your Love To Kuwait" was inaugurated on Tuesday 11/3/2008 in South Surra Branch within the activities arranged by the Bank for sponsoring all kids living in Kuwait with the participation of "My First Account" kids. A number of "My First Account" young customers participated in the Exhibition and the Artwork Competition which was organized within the Exhibition's activities through the distinct drawings & artworks produced by the kids themselves and which spontaneously showed their deep love and sincere feelings to Kuwait.

The Exhibition, which represented an art gathering reflecting all feelings of love to Kuwait, saw the participation of kids' related entities and parties salient of which were as the Scientific Center, Kuwait National English School (KNES), Finz Diving Center, Exemplary Bilingual Kindergarten "Manssory" for kids with special needs, Dolvine Institution, WeLoveKuwait Bookshop, Shabab Al Khair Group and Afaf Al Roumi Clinic.

The Exhibition was inaugurated in the presence of a number of managers and officials from CBK and a crowd of the public. In order to choose the winners, an assessment committee selected the best drawings for winning the prizes offered by CBK to the young customers who participated in this artwork competition.

My First Account is designated especially for CBK young customers and offers kids a package of privileges where kids can obtain an instant gift upon opening the account. Further, Kids can obtain "Visa Electron ATM Cards" featuring amazing designs and become eligible to enter the quarterly draw that may allow kids to win a trip to "Euro Disney" accompanied by their families on this trip . Additionally, CBK regularly arranges for other entertainment and cultural activities to continuously maintain the communication with its young customers. Further, "My First Account" can be easily opened through all CBK branches throughout Kuwait.

Commercial Bank of Kuwait honored the outstanding employees and branches for the last quarter of 2007 in recognition of their dedicated efforts and to exert every possible effort to provide customers with better services.

This appreciation is an integral part of the Bank's policy which aims at honoring the distinguished employees for their dedication and consolidated efforts towards customer service in addition to their concern to pursue the highest service levels at all the branches prevailed throughout Kuwait.

From her part, Ms. Shaza Mansour - the Regional Manager at Retail Banking Division honored the top-performing employees and branches for their combined efforts in this area. In this context, the Bank honored Ms. Shaza Hamza Gerkhi - East Ahmadi Branch, Mr. Hussein Jassim Jamal - Farwaniya Branch, Ms. Nora Salem Kaid - Ray Branch, Ms. Fatma Ali Al Hayan - Beirut St. Branch, and Ms. Hessa Salem Al Khanfar - Salhiya Branch for the 4 th quarter of 2007 where they were awarded certificates of appreciation for their excellence & persistence towards promoting business and providing a distinct customers service.

Additionally, CBK Management honored the best performing branches for the same period where Beirut St. Branch was honored in recognition of its efforts in upgrading customer service levels.

his recognition represents a new addition within the Bank's concern for customer service and providing them with innovative banking services and products as this appreciation is presented to those employees who are keen to best serve customers. This policy demonstrates the Bank's interest in rendering excellent performance levels.

Chairman & Managing Director Abdulmajeed Alshatti on behalf of the Board of Directors of Commercial Bank of Kuwait is pleased to announce record profits for the year 2007 of KD 120.4 million. This is the highest profit in the history of Commercial Bank and represents an increase of 20% on 2006. Earnings per share of 99.8 fils are 16% higher than 2006 and, subject to the approval of shareholders at the Annual General Meeting; the Board of Directors recommends the distribution of an 85 fils cash dividend and a 5% bonus issue.

Mr. Abdulmajeed Alshatti, Chairman & Managing Director commented "Based on our sound business strategy CBK continues to produce excellent returns that are above local and international standards. All business lines showed improvement, resulting in a return on average assets of 3.34% for 2007 and a return on average equity of 29.24%. Our financial and performance indicators confirm the Bank's steady progress towards achieving its strategic goals of providing excellent customer service and maximising shareholder value".

" The Bank complies with the Central Bank of Kuwait loan to deposit ratio and continues to attract new customer deposits. Despite intense competition the Bank has increased customer deposits by KD 886 million, an increase of 50% over 2006. Fees and commission increased over 2006 and the Bank realised excellent returns on its investment portfolio through increased dividends and higher gains on disposal".

"We continue to invest our branch network, IT systems and our people. With 51 branches Commercial Bank continues to provide the second largest branch network in Kuwait. During 2007 three branches were opened, in Al Rabia, Al Naeem in Jahra and at the Al Dhow Tower. New locations have been secured for a further 8 branches to be opened in 2008. A new mobile ATM service will be launched in 2008 to bring convenient banking services to our customers.

2007 witnessed the full launch of Tijari Private Banking with its independent branding and image. Its mission to be the trusted partner for our valued clients through dedication, tailored made services, trust, strong relationship management and confidentiality. We will provide our valued clients with a personal concierge experience including banking, wealth management and other value added privileges in and outside the country."

The Bank continues to maintain a truly industry best cost to income ratio of 18.97% with operating income growing by KD 18 million while operating expenses increased KD 4.1 million". Total assets reached KD 4.3 billion, an increase of 47% on 2006. Loans and advances increased by KD 705 million through selective lending, mainly to corporate clients. We have the capacity to grow our loan book in the future.

Commercial Bank continues to be one of the most highly rated banks in Kuwait with the leading international rating agencies. Moody's upgraded the bank's financial strength rating from C- to C noting that their rating derives from the Bank's solid franchise as the third largest commercial bank in Kuwait and its strong financial metrics, in particular, profitability, efficiency and capitalisation ratios that are among the best in the country.

Standard & Poor's recently confirmed the Bank's A- counterparty credit rating reporting that the Bank was a major player in the Kuwait market with a strong domestic franchise, strong and sustainable profitability and still strong capital.

According to Capital Intelligence, Commercial Bank has a strong capital base, very good asset quality, excellent profitability and strong management. The Bank's rating was maintained at A.

Fitch Ratings confirmed the Bank's individual B/C rating reflecting its good domestic franchise, consistently strong profitability and healthy asset quality. Fitch also noted that having the second largest branch network in Kuwait gives the Bank a strong position in the local retail banking market.

We are pleased that the exceptional hard work and efforts of the Banks management and staff continue to be recognised by all the leading rating agencies.

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".

As a leading financial institution committed to its social responsibility for supporting all the societal activities and charitable organizations inside and outside Kuwait, the Commercial Bank of Kuwait has offered cash donation to WFP School Feeding Program for providing food to school children suffering malnutrition. WFP School Feeding Program offered about 20 million meals to school children in more than 71 countries across the world, particularly in the African countries. WFP School Feeding Program proved to be an incentive for attracting children to schools. WFP aims to feed more than 59 million children suffering hunger while attending schools.

All WFP's activities reflect its main goals & endeavors to eradicate hunger all over the globe where its activities are generally based on providing food assistance with the noble objective of fighting hunger, assisting the refugees, enhancing the social development and offering relief aids.

CBK have been supporting non- profit making organizations and the civil society institutions inside Kuwait and abroad where the Bank offered, within its social mission, generous donations to the earthquake victims and the injured of wars & hurricanes. This donation offered by CBK to WFP accentuates the Bank's belief in the importance of providing food to the children suffering hunger and malnutrition.

From his part, WFP's representative commended the pioneering role of CBK and its generous donations to WFP pointing out that the Bank's donation will contribute in providing food to almost 2500 children daily and for one entire year. Further, WFP's representative confirmed that this initiative is a beginning for long term cooperation between CBK and WFP and wished all the best to the Bank's staff.

Commercial Bank of Kuwait celebrated the graduation of its employees who successfully completed the Credit Management Program that was organized by the Institute of Banking Studies.

Commenting on the event, Ms. Huda Yacoub Sadeq - AGM, Human Resources Department said that the graduation of this group of employees comes in completion of the Bank's training plan which mainly targets the national labor and aims at enhancing and promoting the relationships with customers for providing better quality banking services. "Commercial Bank of Kuwait ultimately depends on the national labor and gives emphasis on the training programs that aim at enhancing its staff members usage of the modern banking methods.

Ms. Huda Yacoub Sadeq explained that the Bank's employees were ranked as the top performers among 35 participants from banks and companies who participated in the Credit Management Program which enhances their banking experience and enables them to provide customers with excellent banking services using the most sophisticated banking systems and techniques. On this occasion, the Bank's Top Management honored the employees who came in the first positions and offered them certificates of appreciation in recognition of their outstanding performance in the Credit Program.

The Credit Program provides the trainees with a chance to understand the principles and the bases of corporate credit activities with a view to develop their skills & potentials and to qualify them to occupy the position such as credit officer. Additionally, this Program assists the trainees to gain the analytical skills required for performing their duties & functions efficiently and effectively.

Commercial Bank of Kuwait sponsored the youth related activities arranged by Bait Lothan Photography. On this occasion and under the auspices of Sheikha. Nouf Salem Al Ali Al Sabah - Executive Manager, Advertising & Public Relations Department, the first photography exhibition was inaugurated on 7 January 2008 and continued up to 18 January 2008. This initiative comes out of the Bank's belief in the importance of communication with all the segments of the society for supporting the voluntary work in Kuwait. CBK set up a private booth within the Exhibition's activities in order to offer its distinct banking services where it was commended by all the visitors and participants.

Commenting on the event, Sheikha. Nouf Salem Al Ali Al Sabah stated that the Bank's ongoing concern for its social mission besides its basic contributions in the financial and banking activities is an integral part of the Bank's strategy, and explained that CBK's role is not restricted to support of the activities related to social, educational and sporting institutions but it effectively contributes in the banking and trade activities which serve all the society segments.

Further, Mr. / Bahaa Al Deen Al Qazweeni the General Supervisor - Bait Lothan Photography Club expressed his deep thanks to CBK for its sponsorship and financial contribution to the Club. Further, Al Qazweeni added "This sponsorship reflects the Bank's constant endeavors to participate in all the social activities and also its permanent support to the young Kuwaitis."

It worthwhile to mention that CBK's contributions and its role towards the society service come within its policy which aims at supporting the diverse educational institutions and cultural, social and sporting activities which positively contribute to building up the youth who are the cornerstone of our community. Further, the Bank continues its drive through its support provided to all the society's institutions in emphasis on its social mission directed to all the fields which strengthen communication between the Bank and all the societal institutions.

Commercial Bank of Kuwait participated in the celebration organized by the Union of Kuwaiti Banks and held at the Chamber of Commerce and Industry on the occasion of the 25th anniversary of UKB. The Bank's participation in the event comes under the cooperation and coordination among the member banks in UKB and in recognition of UKB's effective role in servicing Kuwait banking sector through the principles and concepts set by UKB to enhance and upgrade the banking profession's ethics.

On this occasion, Ms. Amani Al Wara'a - Senior Manager of Adv. & PR. Department said that the Bank's participation in this celebration accentuates the Bank's ongoing concern to participate in all the activities that serve Kuwait banking sector in addition to its social commitment as a prestigious financial institution.

Al Wara'a explained that CBK adopts, since its inception on 19 June 1960, a balanced policy aiming to mobilize all its efforts and potentials for servicing the community and to contribute in developing the societal activities and protect the environment with the objective of preserving Kuwait natural resources in addition to the Bank's role in reviving the old Kuwaiti heritage via its calendars and prints. "CBK lays great importance for supporting the civil institutions and also sponsors all the social, educational, sporting and cultural activities and provides the Kuwaiti youth with employment opportunities within its mission which aims at "Building the Future Together," added Al Wara'a.

It is worthwhile to mention that the Kuwaiti Minister of Finance and the former American Minister of Treasury and also the Head of UKB and a crowd of the attendees visited CBK's booth held within the activities of the ceremony.