1st Quarter
January - March 2009
CGM & CEO Message
Dear Staff…
I would like to welcome all of you once again in this issue of Al-Tijari News to pass in review our Bank's achievements over the previous period. As you know, the global financial crisis, which hit several world economies including the Arab & GCC countries, has become a major concern to economists & financial experts and bankers and the ramifications of this financial meltdown have attracted the attention of so many people. Though this financial crisis had left negative implications on Kuwait where its repercussions have become prominently visible in Kuwaiti market, the profits reported by our Bank for the year ended on 31/12/2008 were excellent in view of the this crisis, where the Bank's net profit exceeded KD 100 million which was considered a good profitability amidest the financial turmoil witnessed by local & global economy.
During 2008, the Bank opened three new branches in Fahd Al Salem Street, Al Sour Street and Abdulla Al Mubarak District bringing the total number of branches to 54 and confirming the Bank's operating the second largest local branch network in Kuwait. The Bank continued developing and launching various banking products and solutions to customers. Our Bank's business areas also continued their activities conservatively to maintain their gains and avert high-risk business.
As I confirmed on many occasions, this sensitive period requires us to exert our utmost efforts to provide our customers with the best services and also requires all the Bank staff members to cooperate and work as a team work so that our Bank can pass through these tough times without being negatively affected by such crisis. I am confident that you are aware of the nature of such tough times and you will exert every effort to maintain & add more success to the Bank.
CBK's Ordinary General Meeting
The Ordinary General Meeting of CBK was held and chaired by Mr. Abdulmajeed Haji Alshatti - Chairman & Managing Director and in the presence of the Board Members and a number of the Bank's valued shareholders.
Al Shatti said that Commercial Bank of Kuwait conservatively continued its excellent performance despite the turbulent economic conditions and the challenging environment for financial institutions where the Bank generated net profits of KD 100.7 million and earnings per share was 80.6 fils. The Board of Directors recommended the distribution of cash dividends at 40% of the nominal share capital (i.e. 40 fils per each share). Al Shatti added that the financial statements show that operating income was 22% ahead of last year. In a press conference held following the end of the General Meeting, Al Shatti pointed that Commercial Bank of Kuwait will continue adopting its prudent policy and precautionary procedures where the retained earnings reached
KD 92 million in addition to the extra general provisions. The Bank has built this cushion against any future impacts of the financial meltdown in 2009 and this reflects the prudent and conservative strategy our Bank adopted years back.
Corporate Credit Division
The outlooks for 2009 seem to be completely different from the prospects that prevailed at the beginning of 2008 on the back of the global financial crisis and its fallouts on Kuwaiti market. However, the Bank's Management, and Corporate Credit Division have taken the required actions and the Division is well prepared to study the customers' credit requests with particular focus on the quality of credits. Along with the high quality credit service offered to customers, Corporate Credit Division has made large strides in participating in the Local Investment Companies Support Scheme. Through a highly qualified and professional teamwork, Corporate Credit Division offers the credit services to local and international companies that best suite their requirements and their business nature.
The Division expects to receive all support from all the Banks' departments in order to maintain the Bank's corporate image, reinforce its position and to achieve the best results during 2009.
Al-Tijari Partners with SEI for Global Investment Management Solutions
The Commercial Bank of Kuwait's newly formed Tijari Private Banking (TPB) announced a strategic partnership with SEI (SEI:NASDAQ), a leading global provider of outsourced asset management, investment processing and investment operations solutions, to deliver comprehensive global investment management solutions to Kuwaiti investors.
TPB will utilize SEI's investment management services, a key component of Global Wealth Services. This partnership is a part of the Bank's policy which aims to continue increasing its business activities in global markets and also highlights the Bank's commitment to provide its customers with the best investment solutions.
Al-Tijari Offers Financial Contribution to Al Tadamon Sporting Club
In keeping with its endeavors to support all the sporting activities, Commercial Bank of Kuwait offered financial contribution to Al Tadamon Sporting Club in response to the Club's request to support and encourage the Club's Team for exerting its utmost efforts to achieve the highest positions.
Mr. George Elie Khoury, Manager - Farwaniya Branch offered the contribution cheque to Mr. khaled Rabeh Al Khumaili, the Chairman - Al Tadamon Sporting Club who extended his thanks & appreciation to the Bank's Management for such support noting that this contribution will be highly commended by all the Club's Board Members and players. Khoury confirmed that CBK endeavors constantly to strengthen its social role as a leading banking institution in all the societal activities.
CBK Sponsors the Public Authority for Industry's Celebration
Emphasizing its social role towards serving all the society's segments, Commercial Bank of Kuwait patronized the third annual honoring party for the pensioners and outstanding employees of the Public Authority for Industry. The Bank's Management always endeavors to provide support to industrial authorities and institutions which aim at developing the local industry.
Further, the Bank continues to demonstrate its social and humanitarian role through participations and contributions to the programs and gatherings which serve the society.
New Group of Kuwaiti Recruits Joins CBK
During the months of December 2008 and January 2009, new Kuwaiti recruits have joined the Bank where 100 Kuwaiti employees have been recruited during these two months.
CBK endeavors to recruit the talented Kuwaitis comes within the Board of Directors' clear strategy which places great emphasis on providing much care and attention to the national manpower to participate in developing the Bank's business, out of the Bank's corporate social responsibility as a pioneering financial institution.
Commercial Bank of Kuwait obtained a number of awards in "Kuwaitization Process" occupying prominent position among other Kuwaiti institutions in relation to "Kuwaitization Process". Further, the Bank supports the initiatives of "The Manpower and the Government Restructuring Program of Kuwait" and aims at increasing its national human resources to become at the forefront among other institutions.
CBK Sponsors the Health Fair of Public Health Committee at College of Medicine
In line with the Bank's ongoing efforts in enhancing and supporting diverse activities, Commercial Bank of Kuwait patronized the Health Fair held by the Public Health Committee associated to Kuwaiti Medical Students' League emanated from the Federal Union of International Medical Students' Leagues. The Health Fair was organized under the title of "Health & Fitness" with the objective of raising Health awareness for Medicine College's students and encouraging them to lead a healthy life by practicing sport and following a healthy diet regimen for eliminating the negative phenomena prevailing in Kuwait such as fatness, high blood pressure and diabetes.
Commercial Bank of Kuwait's participation in this event reflects its belief in the mission of this Fair and the importance of health and fitness for all the society's segments.
CBK Sponsors the 3rd Forum of the College of Engineering & Petroleum's Graduates
Within the Bank's ongoing endeavors to have strong presence in social, educational and student related activities which support young Kuwaitis, Commercial Bank of Kuwait participated in "The 3rd Forum of the College of Engineering & Petroleum's Graduates" organized by the College of Engineering - Kuwait University under the patronage of the Minister of Foreign Affairs Sheikh Dr. / Mohammed Sabah Al Salem Al Sabah.
The Bank's participation in the Forum illustrates its support of the educational and advancement process in Kuwait and accentuates the Bank's contribution in developing human resources for the common interest of Kuwait. This sponsorship comes as another landmark added to the Bank's rich record of diversified social and humanitarian participations over past years and stands as a manifestation of the Bank's commitment and permanent support to all educational & social activities.
CBK Hosts Mishrif Secondary School's Female Students
Within its ongoing communication with the community, CBK in coordination with the Manpower and Government Restructuring Program hosted Mishrif Secondary School's Female Students in a field visit to Hawali Branch in order to get them familiarized with banking business and administrative techniques in a number of departments. The female students were received by Advertising & Public Relations Department's Team and Human Resources Department where they had made orientation visits to HRD, Call Center, Legal Department, Card Center and Loan Follow-Up Unit. Further, the female students listened to a detailed explanation from departments' officials with regard to business mechanism and functions assumed by each department.
Al-Tijari's Participation in "The Future Maker Exhibition"
In keeping with its leading role towards supporting Kuwaiti youth and out of its strong belief that investing in the human resources, being the bedrock for success and progress, has become one of the most important investments sought by prestigious institutions in advanced countries, CBK participated in "The 14th Future Maker & Employment Opportunities Exhibition" organized by the Training and Graduates Office at the Faculty of Administrative Sciences under the auspices of Dr. Moudhi Al Homoud, the Minister of State for Housing and Development Affairs and in the presence of the Dean of the Faculty of Administrative Sciences.
On this occasion, CBK set up a special booth which was visited by Dr. Moudhi Al Homoud and the accompanied delegate where Dr. Rashed Al Ajmi, the Dean of the Faculty of Administrative Sciences commended the Bank's ongoing endeavors to participate annually in this Exhibition indicating the Bank's effective role in making such event successful.
CBK Shares Arab Towns Organization "Spreading Greenery & Planting Trees"
Within its corporate social responsibility, Commercial Bank of Kuwait shared the Arab Towns Organization its 42nd Incorporation Anniversary under the slogan "Spreading Greenery & Planting Trees.... Social Responsibility" where the Bank planted an olive tree bearing the name of the Bank in the friendship and Peace (Al Sadaqa & Al Salam) Garden in Shuwaikh.
Al-Tijari Selects the Best Movie Filmed By "My First Account" Customers
Within its ongoing endeavors to boost communication with "My First Account" Customers', CBK organized "My First Account" Best Movie contest. "My First Account" Customers participated in this contest by filming only one video containing any funny situation they have experienced or while practicing their favorite hobbies. The participants presented movies highly commended by the assessment committee, where the winners were awarded valuable prizes such as video cameras and other digital cameras with printers & memory cards. The unlucky participants received prizes in the form of purchase coupons.
CBK Sponsors the Open Day for Vocational Rehabilitation School
Support and contribution to the disabled and their related activities has always been in the heart of Commercial Bank of Kuwait's corporate social responsibility. Out of this, CBK sponsored the open day for the Vocational Rehabilitation School for Girls which was held at the premises of Kuwait Officers Club. The Bank's sponsorship of this event comes to demonstrate the Bank's social responsibility towards all the society segments and interaction with the community, especially those activities which provide care to children. It is worthwhile to mention that CBK has previously contributed to several activities arranged by special needs schools to help them communicate actively with the society.
The Bank Supports Al-Sayed Omar Kindergarten
In keeping with its commitment towards society service, Commercial Bank of Kuwait offered financial contribution to Al-Sayed Omar Kindergarten where it was relocated to a new building for enhancing & promoting the educational process in favor of children. This financial contribution comes in line with the Bank's social mission which aims at providing support to diverse sectors. Drawing from this, CBK provided the Kindergarten with some supplies and necessities to assist in enhancing its activities.
CBK endeavors to communicate with all the society's segments, particularly children and this stands as a clear manifestation of the Bank's policy and its social responsibility which aim to give more attention and care to all different ages.
CBK Sponsors "Children with Special Needs" Open Day
As a part of its corporate social responsibility, Commercial Bank of Kuwait patronized the Open Day for children with special needs held for Al Rajaa School for Girls with Special Needs at Kuwait Officers Club with a view to support and encourage the children with special needs to interact actively with the community.
The Bank's sponsorship of the Open Day comes out of its main principles and policy that aims at supporting all the diversified educational and cultural activities presented by all the educational institutions and which positively affect this segment of children.
CBK Contributes to the Unified GCC Traffic Week
Under its community service activities, Commercial Bank of Kuwait contributed to the Unified GCC Traffic Week under the caption "Don't Call Until You Arrive". This participation by the Bank comes to demonstrate its national drive and corporate social responsibility towards society to increase the awareness of people with traffic law & rules and general behavior on roads
Farewell… Nazir Saad
The Bank's Management organized a farewell party to Mr. Nazir Saad former Chief Internal Auditor on the occasion of his retirement Mr. Nazir Saad occupied a number of positions and made gradual progress in banking business where he proved his competence in managing the departments which were under his supervision.
The farewell party was attended by Mr. Abdulmajeed Al Shatti - Chairman & Managing Director, Mr. Jamal Al Mutawa'a Chief General Manager & CEO, divisions and departments' heads and some colleagues. Commemorative gifts were offered to Mr. Nazir Saad in recognition of his dedication and sincere efforts during his years of service with the Bank. The party ended with everyone wishing Mr. Nazir Saad a very successful and prosperous future. In view of his long experience, Mr. Nazir Saad was appointed as a Consultant for the Bank.