Jul 19 2012
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Natl Bank Of Kuwait 2Q Net Pft -40% On Yr As Provisions Drag
Thursday, Jul 19, 2012
(This story was originally published Wednesday.)
--2Q profits miss analyst forecasts
-- NBK takes KWD27 million "judgmental provision" in 1H
--Bank faces negative outlook, plans international expansion, CEO says
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)-- National Bank of Kuwait , the country's largest lender by market value, Wednesday posted a 40% year-on-year decline in second-quarter net profit to 39.8 million Kuwaiti dinars ($141.3 million) as provisions rose.
The lender, in an emailed statement, reported an 18% year-on-year fall in first-half net profit to KWD120.8 million.
NBK took a KWD27 million "judgmental provision" in the first half, it said in the statement. The decision was a response to economic and geopolitical stress in the region, the bank said.
"Domestically, a negative outlook is inevitable where government spending remains dormant, tendering of new projects significantly lags and asset values continue contracting as the local stock market considerably underperforms," Ibrahim Dabdoub, NBK 's chief executive, said in the statement. "Add to that, the geopolitical developments that are putting further pressures on both the local and regional economic activity."
The bank planned to confront domestic challenges by diversifying income sources and expanding internationally, Mr. Dabdoub said. First-half profits from international operations rose 44% compared to the year-ago period, he said.
NBK 's total assets reached $51.1 billion at the end of June, a 4.4% rise from a year earlier.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, email@example.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
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