NBK achieves $1bn in net profits for 2007

Net profits rose to $1,002m, compared to $876m in 2006. NBK also reported an increase in operating income during the year to
$1,554m from $1,077m the previous year.

Ibrahim S. Dabdoub, NBK's Chief Executive Officer, said 'this year we broke the $1bn profit mark, passing yet another milestone in the Bank's illustrious history. We are very proud of this achievement, which reinforces NBK's outstanding performance on a global level in terms of return on assets and return on equity. It is a result of significant efforts to grow existing business lines in keeping with our stated strategy to expand both domestically and regionally.'

'Expansion in the domestic market remains an important pillar of our strategy. Our operations in Kuwait continue to grow benefiting from continuous investment in core business units for a progressively broader, customer centered service. We aim to remain at the cutting edge of technological advancement, always offering the most innovative banking solutions for a wide array of personal and corporate clientele,' added Dabdoub.

Commenting on NBK's strategy for regional expansion Dabdoub stated, 'Recently we shifted plans to expand our presence in the region up a gear, and recently, this year we concluded several significant deals. The acquisition of Egypt's Al Watany Bank, the acquisition of a 40% stake in Turkish Bank, and the increase of our ownership stake in the International Bank of Qatar to 30%, signal our determined commitment to regional expansion as a strategy to sustain the bank's growth in the future.'

Today, NBK enjoys the largest presence in Kuwait with 64 branches, as well as a growing international representation in many of the world financial centers such as London, Paris, New York, and Singapore, as well as in China (Shanghai) and Vietnam (Ho Chi Minh City). The new acquisitions in Egypt and Turkey follow on the heels of NBK's recent entry into Qatar, Saudi Arabia, Jordan, and Iraq. Together with an established presence in Bahrain and Lebanon, these new markets position NBK as a leading regional player. The Bank also enjoys added coverage in the Kuwaiti, Turkish, and Dubai markets through its investment arm, NBK Capital.

'We are very pleased with the encouraging results from our new markets, namely Qatar, Iraq, Jordan, and Saudi Arabia, which have surpassed our expectations. Our regional expansion will not only serve to diversify our revenue sources, but will very effectively help boost our profits in the future. We are always working to better position ourselves to take advantage of the economic boom in the region and the ensuing increase in demand for banking products,' noted Dabdoub.

During 2007, NBK's long-term credit rating was upgraded by Moody's to Aa2 from Aa3, and by S&P rating agency to A+ from A, a reflection of the Bank's strong financial position and long term positive outlook. This further consolidated the strong reputation NBK has enjoyed over the years, having been consistently awarded the highest credit rating of all banks in the region and emerging markets from Moody's, Standard & Poor's, and Fitch Ratings. The Bank's rating is supported by its high capitalization, prudent lending policies and its systematic approach to risk management, in addition to the recognized excellence of its very stable management.

NBK's total assets reached $42.3bn at the end of 2007, while its shareholders' equity stood at $5.5bn.