NBK convenes its 2008 Annual General Assembly

The Assembly was kicked off with an address delivered by Vice Chairman Mr. Nasser Musaed Al Sayer in which he stressed that despite the challenges of the world financial crisis and its repercussions on the local and regional economies, NBK's operational activities during 2008 witnessed significant growth and the bank's net profits increased by 10% in comparison with 2007.

Al Sayer said:

"Nevertheless, the Bank's Board of Directors decided to adopt more precautionary measures and increase voluntary general provisions to consolidate the bank's status in preparation for further repercussions of the financial crisis on the Gulf 's and the region's markets."

"The Bank achieved net profits of KD255.3m ($925m) after deducting additional voluntary general provisions and other required provisions as preventive measures to guard against further repercussions of the global financial crisis on the local economy while the bank's operating income increased from KD424m to KD508m; a 20% increase over 2007," Al Sayer added.

NBK's General Assembly also approved the distributing of shareholder cash dividends at 45% (45fils per share) and share granting at 10% (10 shares for every 100 shares) proposed by the Board of Directors.

Disclosing further financial highlights of the year, Al Sayer went on to say that the return on average assets (ROAA) remained a respectable 2.2% and the return on average equity (ROAE) reached 17.6%, whereas the bank's total assets amounted to KD12bn ($43.4bn), and shareholders equity reached KD1.4bn ($5.2bn) by year end.

Referring to the forthcoming period and the tough challenges it will bring forth on the local, regional and international levels, Al Sayer indicated that the government of Kuwait can actively contribute to the alleviation of the crisis and its challenges through the launch of a simulative program based on increasing the governmental expenditure devoted for national vital projects in addition to supporting the housing sector in order to stimulate the local economy and inject new liquidity into the market.