Commercial Bank of Kuwait continues its conservative provisioning strategy for 3Q 2009

Chairman and Managing Director, Mr. Abdulmajeed AlShatti, explained that the Bank's prudent policy towards building up a strong provision base will continue during the year.

Given the level of uncertainty both locally and internationally though some positive signals have appeared in the horizons, yet we have to remain carefully optimistic.

AlShatti further added:

"We believe it is sensible to be very conservative to ensure the Bank's continuity as a leading financial institution in the State of Kuwait noting that by the end of the year the Bank will be protected by adequate provisions against any meltdown the financial crisis may leave."

AlShatti further explained, "While we believe that the Government and the Central Bank of Kuwait have taken the right action to support the economy outlook remains uncertain, the Bank continues to work with its corporate customers to ensure their continuation through this difficult period."

Commercial Bank's total assets are KD3.7bn at the end of September 2009 and its shareholders equity stood at KD444.9m. The Bank continues to build provisions and conserve capital. As at 30th September 2009 the Bank has a total of KD229.6m of post liberation provisions with KD126.8m of specific provisions and KD102.8m of general provisions. In addition to the loan and investment provisions, the Bank has approximately KD90m of retained earnings available as an additional cushion. The capital adequacy ratio of 17.97% comfortably exceeds the minimum 12% required by the Central Bank of Kuwait; the Bank continues to have a strong capital base, and twice the international ratio required by Basel II.

Commercial Bank of Kuwait is the 2nd highest rated bank in Kuwait with Capital Intelligence, Fitch Ratings, Moody's and Standard & Poor's.

AlShatti took the opportunity on behalf of the Board of Directors "to thank the Banks valued customers for their trust and confidence, the Executive Management team headed by Mr. Jamal Al Mutawa and the Banks staff for their hard work and loyalty and shareholders for their continued support and faith."

With 55 branches Commercial Bank of Kuwait operates the second largest full service network in Kuwait.