Reported profit of KWD81.0mn in line with expectations of KWD81.8mn
Net profit was stagnant YoY but exhibited an improvement of 5.5%QoQ
Top-line rose also remained largely unchanged at -1.7%QoQ and +1.7%YoY
Non-interest income was down 10.4%QoQ on lower investment income; held ground YoY
Provisions ease off from previous quarter (down 54.5%QoQ) but increased by 21%YoY
Positive surprise from deposit growth, up 5.8%YTD though loans movement remained muted at 1.1%YTD
Analyst comments:
NBK's results were closely in line with our expectations and therefore void of any surprises with the exception of deposit growth which was starkly high. Deposit mobilization may be taken as an indicator of improved loans offtake in succeeding quarters. Drop in provisions was expected and may be cited as the only explanation behind QoQ growth in the bottom-line; on YoY basis addition to the top-line though slight was offset by a matching rise in provisions. Top-line was stagnant YoY and so was non-interest income which was reflected in the stagnancy in the bottom-line. Overall we remain satisfied with the results.
Naveed Ahmed, CFA
Senior Financial Analyst
Research Group
Global Investment House
t: (965) 2295-1280
f: (965) 2295-1280
e: nahmed@global.com.kw
w: www.globalinv.net
P.O.Box: 28807 Safat, 13149
Kuwait
© Press Release 2012
