NBK reports record net profit of USD 108 million for the first quarter of 2004

This puts NBK's return on equity at 26% and the return on assets at 2.38%, marking an outstanding performance by international standards.

'First quarter results are very encouraging and provide strong indications of continued momentum in the growth of our business across different lines,' said NBK's CEO Ibrahim S. Dabdoub. 'This growth continued to drive profits up to a new record, maintaining the consistently rising trend in profitability that has been a hallmark of NBK's performance since our establishment in 1952.'

Dabdoub attributed NBK's ability to maintain a solid and stable performance, notwithstanding an increasingly competitive environment and low interest rates, to a long standing strategy of diversifying income sources, a conservative culture and prudent risk management policies.
'NBK has a number of strategic initiatives currently underway that should help ensure our continued success, growth and market leadership,' added Dabdoub. 'These initiatives are focused on ensuring that NBK offers first-class services to customers and meets the needs of all segments. In addition to proper planning and analysis, we are making intensive investments in enabling technologies to ensure proper execution. We are also keen on enhancing our international presence through regional expansion.'

NBK stands out in the region in terms of its international network covering London, New York, Geneva, Paris, Lebanon, Bahrain, Singapore, Vietnam and Thailand. It is expected to open new branches soon in Amman (Jordan) and Jeddah (Saudi Arabia), and a representative office in China. It is expected to complete a buyout of a major stake in a Qatari bank with management contract.

NBK enjoys the highest financial strength ratings among all Arab as well as emerging market banks from international rating agencies including Moody's, Standard & Poor's and FitchRatings. NBK's superior ranking reflects the bank's consistent performance and track record, strong capital position, depth of its management and its clear strategy.
Financial statements for the end of March 2004 round the bank's total assets at USD 18.2 billion and its shareholder's equity at USD 1.8 billion.