4th Quarter
October - December 2009
Message from the CGM & CEO
Dear Staff..
Once again I would like to welcome all of you in this issue of Al-Tijari News and seize this opportunity to congratulate all of you on the occasion of new Hijri year and the beginning of the New Year 2010.
The financial crisis that hit global economies, and took its toll on many Arab & GCC economies in September 2008 is still the mounting concern to the financial experts and bankers. Some economists believe that the global financial turmoil is drawing to an end amidst the soaring oil prices and the relatively good performance of some Arab & regional equity markets. However, the fallouts of the global financial crisis will not be remedied overnight as number of economists & financial analysts deem that remedying the ramifications leftover by the financial crisis may take years on the back of the uncertainty prevailing in the financial markets, coupled with the sluggish performance of some stock markets which negatively affect investors' sentiment and led to decline in the demand for credit.
Commercial Bank of Kuwait's financial results for the third quarter of 2009 came in line with the financial crisis developments, where our Bank continued its conservative provisioning policy during the third quarter of 2009 reporting profits of KD 99 million before provisions. However, and in view of the conservative policy our Bank adopted since the beginning of the year and which aims at building up a solid provisioning base, the Bank reported a net loss of KD 1.6 million. As you are aware, when markets bounce back, the economic cycle will recover and investment & credit markets shall regain the trust of investors and lending activities shall boom gain, then such provisions will be taken back to profits. As I have always confirmed, customer service & persistence at work will remain the basic pillars of our business plans. Together and hand in hand, with the teamwork spirit our progress and achievements will continue and we will be proud enough to pass such achievements in review in the upcoming issues of Al-Tijari News.
Once again, I congratulate you on the occasion of New Hijra Year and I hope that 2010 will be a year full of excellent accomplishments for CBK and for each and every staff member as well.
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Al-Tijari Among the First Private Sector Institutions in Localization Process
Commercial Bank of Kuwait lays great emphasis on recruiting Kuwaiti manpower and continuously endeavors to raise the percentage of Kuwaiti manpower in the Bank within its ongoing support of the national labor on one hand, and out of its participation in the The Manpower and Government Restructuring Program's initiatives on the other hand. With the percentage of Kuwaiti manpower at the Bank constituting 67% of total workforce, the Bank is at the forefront of private sectors' entities towards the localization of jobs. It is worthwhile to mention that CBK has obtained a number of awards in many events organized locally and regionally for its localization process.
CBK Supports National Economy
Within its leading role towards supporting the mega national enterprises which positively reflect on the national economy, Commercial Bank of Kuwait has financed a number of the vital enterprises launched by government entities such as the Ministry of Public Works and Ministry of Electricity & Water in addition to the several enterprises related to Kuwait Petroleum Corporation and the Public Authority for Housing Welfare, as well as private companies. This support comes in line with the Bank's cooperative drive with some local banks for arranging syndication facilities to be extended to various enterprises such as Al Zour Power Plant, Shauiba North Power Plant, Desalination Plants and many major enterprises related to Kuwait Oil Company and Kuwait National Petroleum Company for the purpose of expanding the enterprises which are beneficial for both Kuwait and its citizens.
Additionally, Commercial Bank of Kuwait participated in financing Sabiya Power Plant within a plan aiming to heighten the productive capacity with a view to satisfy the State's growing needs for power. Further, it is expected that two similar projects will be launched in Southern Al Zour Area and Northern Al Zour Area.
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GM- Financial Controller
2009 has been a challenging year to say the least! Kuwait seemed to enter the global financial crisis later than other countries and probably has a little further to go before the recovery starts and business picks up. The Bank has been affected in 2009 taking provisions on its loan and investment portfolios and will probably continue this policy into 2010. The focus has been to set aside provisions required as soon as possible to clean the balance sheet. 2010 is likely to be as tough as 2009 if not tougher as asset values have not yet recovered and additional write downs may be required at KSE listed companies when they report their 2009 results. To continue competing and maintain our position as a top tier bank in Kuwait we are going to have to raise our already high standards higher and continue to deliver excellent service and products to our target segments using the most convenient and efficient delivery channels. We will also have to ensure that we maintain our position as the most efficient bank in Kuwait with the lowest cost to income ratio by continuing to identify process improvements and efficiencies. The coming year will be hard but working as a team we will emerge at the end a stronger Bank.
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Al-Tijari Concludes the Summer Training Program
Commercial Bank of Kuwait concluded its "Summer Training" program which was organized throughout the period from June 2009 to August 2009 for the children and relatives of the staff for training them on banking business at the Bank's different branches and departments.
The Bank has taken the lead in organizing training programmes to involve the young generation, develop their skills and encourage them to seek employment with the private sector in general and in the banking sector in particular.
Further, CBK concluded the training program for a group of students and female students from different universities and institutes such as Kuwait University, American University of Kuwait, Educational Institution of Secretaryship & Office Administration - for males, Educational Institution of Secretaryship & Office Administration - for females, LOYAC Summer Training Program, American Academy for Sciences & Technology, Commercial Institute, SIMS Academy, Future Institute, Qualities Institute, The Manpower and Government Restructuring Program and National Union of Kuwaiti Students (U.S.A). These training programs aim to provide the trainees with the opportunity to acquire experience on the nature of employment in banking sector, and how to deal with customers so as to develop their skills. All the trainees commended the training programs which efficiently contribute in grooming their skills and upgrading their on-the-job experience. At the end of these training programs, certificates were awarded to the trainees who successfully completed the training programs.
CBK Offers Silver Sponsorship to KIEPEC 2009
Under the auspices of His Highness the Crown Prince Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah and in the presence of His Excellency the Minister of Oil and Minister of Information Sheikh Ahmad Al-Abdullah Al-Sabah, Commercial Bank of Kuwait offered its silver sponsorship to "Kuwait's 3rd International Energy & Petrochemicals Exhibition and Conference 2009" which was organized by Kuwait International Fair Company. On this occasion, Al-Tijari set up a special booth visited by Sheikh Ahmad Al-Sabah welcomed by Mr. Yasser Behbahani, Executive Manager - E Channel /CBK who presented a thorough explanation on the latest technology adopted by the Bank.
Mr. Behbahani stated that the Bank's participation in the exhibition illustrates the Bank's ongoing support for economic and oil related activities. The exhibition aims to highlight oil and gas industry activity and its relevant services such as geological and field studies, exploration, production, oil wells, refining, marketing, health, safety, environment as well as training and Human Resource development.
Al-Tijari Participates in Kuwait International Real Estate Exhibition
Commercial Bank of Kuwait sponsored Kuwait International Real Estate Exhibition which was organized by Top Expo Group at Kuwait Fairs Ground. On this occasion, the Bank set up a special booth where Mr. Bader Al Amer, Regional Manager - Retail Banking Division welcomed Mr. Rasheed Al Tabtbaee, the Under-Secretary - the Ministry of Commerce & Industry who praised the role assumed by the Bank in providing state-of-art products and financial services to customers.
Mr. Bader stated that the Commercial Bank of Kuwait endeavors to participate in such important economic events that attract the attention of a large segement of Kuwaiti society. This participation gives the Bank a unique opportunity to display its banking products & services such as different types of loans and other exclusive banking products, tailored to meet the need of various segments of society.
CBK Offers Gold Sponsorship to Gulf University Job Fair
Within its mission statement which aims at "Building the Future Together" and for the purpose of attracting the ambitious Kuwaiti youth to get employment opportunity with the Bank, Commercial Bank of Kuwait offered gold Sponsorship to the Job Fair organized by Center of Career Services & Alumni in collaboration with the league of Gulf University's students. Dr. Shuaib Al Shuaib, Dean of Gulf University praised the Bank's role and its outstanding efforts in all social & student activities which support young Kuwaitis.
CBK Presents its Banking Services to the Students of Commercial Studies Faculty
Commercial Bank of Kuwait arranged an orientation lecture to the Faculty of Commercial Studies' female students on the banking services offered by the Bank to its customers. The female students were given the chance to see how their theoretical studies can be practically experienced. This lecture aims to increase the awareness of students with the banking business and to familiarize them with the services offered by CBK to its customers.
In an overview lecture on Commercial Bank, Mr. Rami Mokdad - Sales Unit presented the important stages in the Bank's history since inception. Further, Mr. Mokdad explained the various accounts and the banking services provided by the Bank to its customers and also outlined the different loans extended by the Bank. The female students communicated throughout the lecture by raising many questions and queries on the Bank's services.
Arab Police Day Festival
Within its ongoing endeavors to positively interact with all community segments, Commercial Bank of Kuwait participated in the Arab Police Day festival held at the Police Officers Club for the Ministry of Interior's police officers, employees, martyrs' families and pensioners. The Bank's participation in this event comes out of its belief in the police officers' role towards the community service.
CBK teamwork welcomed the major general / Sulaiman Al-Fahd the Assistant Under-Secretary, Special Forces Security Affairs and the accompanied delegation at the Bank's special booth to get them familiarized with the banking services offered by the Bank to its customers. The major general / Al-Fahd expressed their appreciation to CBK for its remarkable participation in this festival and its ongoing communication with the Ministry of Interior wishing the Bank further success & prosperity.
Al-Tijari Participates in the Psychological Medicine Hospital Marathon
In keeping with its proactive role towards all diverse activities, Commercial Bank of Kuwait participated in the Marathon organized by the Psychological Medicine Hospital on the occasion of "The World Psychological Health Day" under the patronage of Minister of Health Dr. Helal Al-Sayer. This event was participated by the hospitalized patients, the medical team and psychiatrists, patients' families and the Marathon's supervisors in addition to a number of other participants interested to share the patients in this event. The organizing committee expressed its high appreciation to the Bank for supporting the Marathon and enhancing all the different segments in Kuwait to encourage them to actively interact with the community in order to benefit from such segments.
CBK Sponsors Kuwait Financial Forum
Under the auspices and in the presence of the Prime Minister Sheikh Naser Al-Mohammed Al-Sabah, Commercial Bank of Kuwait patronized Kuwait Financial Forum organized by Economy & Business Group in co-operation with both the Central Bank of Kuwait and Kuwait Banking Association. Mr. Abdulmajeed Al Shatti - Chairman & Managing Director and Chairman of KBA attended the Forum along with a number of executives from the Bank. The Minister of Commerce & Industry Mr. Ahmad Al-Haroun commended the Bank's effective role in participating and contributing to such different & important economic activities.
2010 Calendar from Al-Tijari
Within its ongoing endeavors to revive the old Kuwaiti heritage, Commercial Bank of Kuwait issued its annual calendar derived from the old Kuwaiti heritage rich in images that truly depict the traditions of our forefathers and ancestors. Al-Tijari 2010 calendar comes out in 12 paintings drawn by the Artist Mohammed Al-Shebani. The paintings of the calendar portrayed and clearly illustrated a number of proverbs and sayings that lived long back with our grandfathers and ancestors throughout the years.
Commenting on the event, Sheikha Nouf Salem Al-Ali Al-Sabah - Head of Adv. & PR Department said that 2010 calendar reflects cultural aspects associated with these proverbs and sayings visualized and envisaged through the drawings to give images that clearly mirror and document such old proverbs & the occasions in which they were said, stressing that the paintings of the calendar truly reflect the cultural heritage of forefathers and ancestors to stand as a guidance to the new generations.
CBK Presents it Services at Complex 360
Out of its concern to present its banking products & services to its diversified customer base, Commercial Bank of Kuwait presented its services & products to its large customer base through its Marketing Section's staff who were present in Complex 360 to get customers acquainted with the Bank's sophisticated products and its distinctive offers which meet customers' ever-changing needs. This event coincided with the inauguration of Um Kulthum Exhibition within the Complex, where the Bank sponsored this Exhibition as a strong testimony of its constant endeavors for sponsoring the diverse exhibitions and activities which serve customers.
CBK Celebrates Eid Al-Adha With the Children Hospitalized at Al Razi Hospital
In another step that illustrates the Bank's social role, Adv. & PR Department visited Al Razi Hospital. The visit aimed to rejoice Eid Al-Adha with the children hospitalized at Al Razi Hospital. The Public Relations Team distributed gifts to sick children to bring happiness to their hearts and wished them speedy recovery.
Al Razi Hospital's Public Relations Dept. and the families of sick children extended their thanks and appreciation to the Bank's Management for such compassionate & supportive gesture which drew smile on children's faces wishing Commercial Bank more prosperity and success.
Al-Tijari Welcomes the Pupils of Omariya Elementary School for Girls
Commercial Bank of Kuwait welcomed the pupils of Omariya Elementary School for Girls where they were introduced, in their visit to Omariya Branch, to the different accounts the Bank offers to customers and the "Kids Account".
Commenting on this visit, Ms. Amani Al Waraa, Executive Manager - Adv. & PR Department said that CBK endeavors to communicate with all segments of society by arranging orientation visits which increase banking awareness for students. In this context, Ms. Mudawy Al Hay - Manager, Omariya Branch familiarized the female pupils with the saving opportunities offered through "My First Account". Further, gifts were distributed to pupils during their visit to the Bank.