NBK reports net profit of USD 439 million for the first half of 2009

Dabdoub: We expect good results for the year… Sound risk management and conservative policies are key to our proven ability to manage crises

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated bank in the Middle East, reported net profits of USD 439.2 million (KD 126 million) during the first half of 2009. Operating income came at USD 959.2 million, a 1.0% increase over the previous year, reflecting continued growth in the bank’s core activities. NBK's total assets were USD 42.2 billion (KD 12.1 billion) at the end of the first half, while shareholder equity stood at USD 5.6 billion (KD 1.6 billion).
Ibrahim Dabdoub, NBK’s Group Chief Executive Officer, said “NBK’s performance remains solid and impressive despite the challenging environment for financial institutions worldwide. Our core operating income has seen remarkable resilience as  compared to same period last year, extending from our ability to consistently expand our core operations, both within and outside of Kuwait. This fundamental strength has earned NBK recognition, being the only Arab bank to be named within the top 50 safest banks in the world.”

Dabdoub added that the decline in net profits for the six months to June 2008 reflected a number of exceptional events, symptomatic of the difficult challenges faced by the global banking industry. The banks decision to compensate its customers fully in respect of Madoff related products sold by the bank to some of its customers, and the setting aside of investment provisions and voluntary judgmental loan provisions in excess of the regulatory requirement, impacted half-yearly earnings by over USD 190 million. As for the operating income, which is the core of our business, it has increased from USD 950 million to USD 959.2 million.   

“NBK has proved, once again, its ability to successfully manage through difficult times, banking on our sound risk management policies and conservative culture.  Meanwhile, the additional provisions taken in the first half as a precautionary measure against the impact of the global financial crisis, coupled with our prudent policies, offer further confidence and resilience in the standing and prospects of the bank.”

Dabdoub added “although we foresee that 2009 might be a challenging year for the region’s economies, we are confident in NBK’s ability to overcome the tough conditions and expect to record good results for the year.”

Today, NBK enjoys the largest presence in Kuwait with 69 branches, as well as a growing international representation through its 155 branches worldwide. Our international presence extends over many of the world financial centers such as London, Paris, Geneva, New York and Singapore, as well as in China (Shanghai) and Vietnam (Ho Chi Minh City). Meanwhile, our regional coverage extends to Lebanon, Jordan, Egypt, Bahrain, Qatar, Saudi Arabia, Turkey, and the UAE.

NBK has been consistently awarded the highest credit rating of all banks in the region from Moody's, Standard & Poor's, and Fitch Ratings. The Bank’s rating is supported by its high capitalization, prudent lending policies and its systematic approach to risk management, in addition to the recognized excellence of its very stable management.