KUWAIT: Commercial Bank of Kuwait announced an operating profit before provisions for the period of KD 22.403 million (2011: KD 24.689 million). This was allocated as specific and judgmental provisions against the loan and investment portfolios resulting in a net profit attributable to shareholders of the parent bank for the three months to 31st March 2012 of KD 0.329 million (1Q2011: KD 1.332 million). The bank continues a prudent policy towards building up a strong provision base and consolidating its balance sheet.
Further progress is noted on the bank's review of processes for efficiencies and preparation to benefit from any growth opportunities in the future and to ensure superior customer services. The bank has set a balanced strategy aiming to add further improvements to its operating activities along with reducing non-performing loans within the bank's short and long term business plans that will focus on studying available growth opportunities according to the current economic situations with a particular emphasis on core business activities that help the bank return back to high profitability levels.
The bank continues to demonstrate its cost leadership with operational efficiency a competitive advantage for the bank which continues to maintain one of the lowest cost/income ratios in Kuwait with 24.65% for 1Q2012.
Asset quality indicators showed improvement with non-performing loans falling during the period ended 31 March 2012 to 6.4% (1Q2011: 14.8%) with provision coverage of 100% (1Q2011: 52%).Commercial Bank's total assets at the end of March 2012 reached KD 3.8 billion (12/2011: KD 3.7 billion) with shareholders equity of KD 518.9 million (12/2011: KD 530.5 million). The capital adequacy ratio at March 2012 is 18.67% (12/2011: 18.58%) which exceeds the minimum 12% required by the Central Bank of Kuwait. The bank continues to have a strong capital base with more than twice the international ratio required by Basel II.
Commercial Bank of Kuwait took the opportunity to thank the bank's valued customers for their trust and confidence, the Executive Management team and staff for their hard work and loyalty and shareholders for their continued support and faith. Commercial Bank of Kuwait provides its corporate and retail customers with wide spectrum of banking products and services through one of the largest full service branch networks in Kuwait. For information on Commercial Bank of Kuwait products or services please contact 1-888-CBK or visit www.cbk.com
© Kuwait Times 2012
