KUWAIT: Commercial Bank of Kuwait announced its financial results for the 9-month period that ended on September 30th September, 2019. The Bank reported a net profit of KD 16.6million, increased by 9.1% compared to 30 September 2018. The operating profit before provision was KD 85.0 million compared to KD 81.5 million for the same period of last year, a growth of 4.3%.The Bank witnessed a healthy growth in the key areas of business and revenue. Total assets increased by 5.6% to reach KD 4.7 billion. Operating income grew by 7.1%, net interest income by 5.0%, fee income by 6.6% and foreign exchange income by 12.6%.
Sheikh Ahmad Duaij Al Sabah, the Bank’s Chairman, commented that the Bank continues to focus on asset quality, digitalization, operational efficiency and customer service. The operating profit for the 9-month period of 2019 was KD 85.0 million and the Bank prudently allocated a portion of it to strengthen its pool of available provision. The total provisions held with the Bank against its credit portfolio were KD 184.3 million, as at the end of the 30th September 2019. Sheikh Ahmad added that the Bank will continue its prudent policy of maintaining a portfolio of quality assets during 2019 and beyond, in order to meet the challenges of the volatile economic and geopolitical situation in the region.
Sheikh Ahmad further added that the Bank’s capital adequacy ratio at the end of September 2019 was 18.2%, the leverage ratio at 11.2%, net stable funding ratio at 110.2% and liquidity coverage ratio at 138.7%, comfortably exceeded the regulatory requirement set by the Central Bank of Kuwait. He emphasized that the Bank’s strong financial indicators are due to its provident policy of cleaning its loan portfolio by writing off irregular loans, while taking all the necessary steps to protect the interests of the Bank. The NPL ratio at zero is a clear demonstration of this strategy.
Sheikh Ahmad continued that our digitalization initiatives continue at a rapid pace across the Bank, optimizing back and front-end operations and creating a pleasant and seamless experience for customers at various touch points. Investment in technology and human capital will continue to meet the challenges currently faced by the banking industry.
New initiatives were taken during the third quarter of the year with features like, but not limited to, amend card limit through CBK mobile, cheque validation, allow customers to unlock their user I.D’s or retrieve user I.D/ATM PIN, view standing instructions, online cheque entry enhancement with scanning ability, selection of multiple salary batches and cheques entry and transfer process with a single touch. Moreover, in a continuous effort towards nationalisation, the Bank’s Kuwaitization ratio reached at 75.5% by September 2019.
Sheikh Ahmad took the opportunity to thank the Bank’s shareholders, valued customers, staff and regulatory authorities, emphasizing and reassuring that the Bank’s Management will continue to implement all the required policies for safeguarding the interests of all stakeholders.