Board recommends 13% cash dividend, 6% bonus shares
KUWAIT CITY: Commercial Bank of Kuwait announced an operating profit of KD 99 million (before provisions and taxes) for the year 2015. The net profit of the bank was KD 46.2 million with earnings per share of 32.7 fils.
The Board of Directors recommended to the General Assembly cash dividend distribution of 13 fils per share and a bonus issue of 6 shares for each hundred shares. This recommendation is subject to the approval of the regulatory authorities and the General Assembly of the Bank.
Ali Al Mousa, the bank's Chairman, explained that the bank's financial results are a reflection of its strong financial position and asset quality. The non-performing loans ratio was less than one percent, (0.9 percent) with a provisioning coverage of 572 percent.
Al Mousa further said that the bank's total assets exceeded KD 4 billion. The bank's capital adequacy ratio as at the end of December 2015 was 18.39 percent, the leverage ratio 11.51 percent and liquidity coverage ratio 138.5 percent, comfortably exceeding the minimum requirement of 12.5 percent, 3 percent and 100 percent respectively, as set by the Central Bank of Kuwait.
He pointed that the bank's strong performance indicators are a result of two factors. First is its conservative policy to build up additional and judgmental provision base that in turn will help the bank to withstand any shocks or pressures, and second is its prudent policy to diversify income resources.
Al Mousa further commented that the bank's balance sheet was restructured in order to raise operating efficiency amidst the present volatile conditions witnessed by the global and local economies, particularly the decline in oil prices and its implications on the Kuwaiti economy.
Ali Al Mousa concluded his statement by referring to the importance of perusing the bank's condensed financial statements on Kuwait Stock Exchange website and complete statements when issued by the bank.
© Arab Times 2016
