NBK record profits of KD273.6, the highest ever since inception in 1952

"It was a year in which we leveraged the business opportunities offered in the region, while staying focused on positioning the Bank for continued growth in the future. As a result, we were able to deliver a solid performance, superior financial results, and impressive growth across all business areas", Al Bahar said.

Al Bahar went on to say that the Group's net profit afeter taxes and contributions to various Kuwaiti authorities totalling KD12,3m climbed to KD273.6m ($1,002m), the highest ever since the Bank's inception in 1952, something we are very proud of. Earnings per share also jumped to 125 fils, compared to 118 fils in 2006, while operating income during 2007 rose to KD424m, up from KD395m reported in 2006.

The 2007 Annual General Meeting approved a proposed cash dividend equals to 75% with a 10% bonus share distribution for those shareholders registered at the time of the General Meeting

"This year our ratings were again upgraded. On 27 July, Moody's upgraded NBK's long-term foreign currency deposit rating to Aa2. Standard & Poo's raised our long-term foreign currency deposit rating to A+ on May, " Al Bahar added.

"These upgrades reflect the Bank's record of superior financial performance. We can be proud that we are the highest rated bank in the region for both foreign currency deposits and financial strength. The latter reflects NBK's sound management and progressive strategy, as well as the Bank's consistency of performance over the years", Al Bahar concluded.

On his part, NBK's Vice Chairman, Nasser Musaed Al Sayer said that regional expansion continues to be the cornerstone of the Bank's strategy, adding that "in 2007 we made significant progress in achieving our goals through acquisition in markets where we identified growth potential. On 14 Augustus, NBK was declared the winner of a competitive tender to purchase Egypt's Al Watany Bank in a transaction worth over $1bn. This acquisition marks a significant development in expanding our coverage by gaining access to the Egyptian under-banked market, which offers unrivalled opportunity for NBK to grow.

"In addition, expansion was undertaken in Turkey. In July, 2007 NBK signed an agreement to buy 40% of the Turkish Bank, one of the fastest growing banks in Europe. Through this transaction, we look forward to gaining access to the vibrant Turkish market while building further on our regional platform and leveraging our capabilities. NBK also increased its share in the International Bank of Qatar due to the strategic significance of this market in relevance to NBK's future expansion plans.

Chief Executive Officer, Mr.Ibrahim Dabdoub explained that while NBK is looking to continue with its expansion strategy in 2008 and beyond, we still see strong potential for growth in the domestic market. This, he stressed, will be achieved through deepening NBK's market penetration, which requires a continued focus on strengthening relationships, offering competitive services and delivery channels, and staying in tune with the needs of different market segments.

Dabdoub added that NBK's priorities for the coming year are to maintain market leadership while further expanding locally and regionally. He went on to say that this process is well underway, with 2007 being a year a year of stronger levels of cooperation among business units and greater synergy, reiterating that collaboration within private banking, corporate, treasury and investment banking activities through NBK Capital has led to more products and services being offered on a regional and international levels. Improvements have also been seen throughout NBK's operations, led by sustained investments in people, technology, channels and systems.

Dabdoub also highlighted the leading and strategic step taken by NBK late in 2007 through the creation of a new International Advisory board chaired by Sir John Major, the former U.K Prime Minister, explaining that the new board will support NBK's initiatives and provide international perspectives on long-term strategic issues and developments.

Deputy Chief Executive Officer, Isam Jasem Al Sager said that NBK assigns great importance to recruiting talented and qualified Kuwaiti nationals, in line with the Bank's human resources strategy and mission that view manpower as one of the basic constituents of success. More than 200 Kuwaiti graduates were hired during 2007 in line with the Bank's endeavours to support the country's aim to encourage young nationals to assume active roles in the private sector.

NBK also continued to provide summer training programs and internships for students from Kuwait University, other universities and the Public Authority for Applied Education and Training (PAAET), and more than 100 individuals were trained in the 2007 Al Azraq summer training program.

Al Sager also reiterated that NBK's unremitting commitment to fulfilling its social responsibilities was illustrated again during 2007 through a number of sponsorships and direct involvement initiatives.

"We also hosted a number of high profile economic events that attracted a large official and public audience, notably the 8th annual GCC Banking Conference entitled ' Managing Growth and Risk in an Era of Openness' that was attended by all the GCC central bank governors, together with a host of Arab and Gulf banking leaders and officials. Later in the year, NBK's annual international symposium on Opportunities and Crisis in the Middle East hosted former Secretary of State, General Colin Powell as the guest speaker.

In his closing remarks, NBK's Chairman, Mr. Al Bahar addressed NBK's shareholders by reiterating that their support and confidence are essential to NBK's success, expressing his sincere thanks and appreciation for every and each shareholder.

"We pledge to maintain the Bank's legacy and enrich our standing by providing increase value to our shareholders. We also extend sincere gratitude to our customers and assure them of our commitment to deliver the highest quality services that surpass their expectations", Al Bahar concluded.