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Commercial Bank of Kuwait reports net profit of KD6.3m for Q1 2015

Commercial Bank’s total assets at the end of March 2015 reached KD4.1bn (March 2014: KD3.9bn) with an increase of 4.7 per cent.

Commercial Bank of Kuwait announced net profit of KD6.3m up by 16.8 per cent compared with KD5.4m for Q1 2014. The operating profit before provision was KD27.3m compared to KD24.6m for the same period during last year, a growth of 11.3 per cent.

The bank witnessed a growth in dividend income by 170 per cent and the fee income by 10 per cent. On the one hand, non-performing loans ratio as low as at 0.89 per cent as at 31st march 2015 while on the other hand the bank is continuing with its policy of early recognition of any negative news related to its credit portfolio.

Commenting on the bank’s financial results, Mr. Yaqoub Al Ebrahim, the banks’ spokesman said: “Commercial Bank’s total assets at the end of March 2015 reached KD4.1bn (March 2014: KD3.9bn) with an increase of 4.7 per cent. The banks’ capital adequacy ratio at the end of March 2015 at 18.55 per cent which is significantly higher than the minimum 12 per cent required by the Central Bank of Kuwait, and leverage ratio at 10.8 per cent is more than 3 times higher than the minimum requirement of 3 per cent.”

He pointed: that “The significant improvement in the bank’s financial indicators is due to several factors among them its prudent policy to use the operating profits to build a strong provisioning base.”

Mr. Al Ebrahim concluded his press statement by saying: that “The bank is continuing its balanced strategy to study and analyse available growth opportunities with a fine tooth comb the market conditions and emphasis on core business activities with efficient management of risks and associated returns, pointing out to the ongoing efforts in diversifying its sources of income and mitigation of risk, particularly those relating to the geographical & sector concentration and sector, noting that this strategy bore its fruits for the bank.”