NBK reports record net profit of 343 USD million for the first nine months of 2004

The results show a 13% increase over the same period last year, and put NBK's return on equity at 26.9% and the return on assets at 2.5%.

"Our results this year reflect an exceptionally strong performance in all of our business segments," said Ibrahim S. Dabdoub, CEO of NBK. "An improved business environment allowed us to leverage NBK's leading position in the local market, strong service offering and distribution capabilities to deliver significant value to our shareholders."

"Interest income rose on the back of higher business volume and widening margins. Fee income saw robust growth benefiting from surging activity in the consumer, trade and corporate sectors. The wealth management business was buoyed by continued growth in assets under management."

Mr. Dabdoub commented further on the results, "Our ability to execute a well focused strategy is evident in our ability to maintain an enviable record of consistent growth in profits and superior returns to shareholders. NBK's strategy rests on three pillars: diversification of income sources; prudent risk management policies; and maintaining our lead in the region in terms of quality and breadth of services with an emphasis on using the latest banking technologies. Through focusing on evolving customer needs and regional expansion, we are confident we can continue to deliver strong results."

NBK lately acquired a stake in International Bank of Qatar (formerly Grindlays Qatar Bank) in addition to management rights. It also inaugurated a new branch in Amman, Jordan. Both economies are among the fastest growing in the region and appear to be on the right track towards liberalization and reforms. These two markets strengthen NBK's international presence, which distinguishes it from other banks in the region.

In addition to Jordan and Qatar, NBK's international network spans London, New York, Geneva, Paris, Lebanon, Bahrain, Singapore, Vietnam and Thailand. NBK had also announced plans to establish a new branch in Jeddah (Saudi Arabia) later this year, in addition to a representative office in China.

NBK's prudent risk culture has earned it the highest financial strength ratings among all Arab and emerging market banks. International rating agencies, including Moody's, Standard & Poor's and FitchRatings, have also repeatedly acknowledged NBK's consistent performance and track record, strong capital position, deep and stable management, and clear strategy.

NBK's performance is regularly recognized in the financial community, with numerous awards for "Best Bank in Kuwait" and "Best Bank in the Middle East". Commenting on these awards, Dabdoub said "we value these awards not only for symbolizing our achievements that make us the bank of choice for most customers in Kuwait, but also because they strengthen our commitment to be best-in-class in the services we provide, the people we attract to work for us, and the standards of corporate governance we espouse."