Total assets reach KD 4,291 million
KUWAIT CITY, May 1: Commercial Bank of Kuwait announced a net profit of KD 10.1 million for the first quarter of 2018, compared to KD 0.8 million for the same period of 2017. The bank witnessed a healthy growth in all the key areas of its business.
Net interest income grew by 8.7 percent, fee income grew by 2.5 percent and the foreign exchange increased by 209 percent. Sheikh Ahmad Duaij Al Sabah, the bank’s Chairman, commented on these positive results that the bank continues to capitalise on its core competencies by focusing on asset quality, operational efficiency and customer service.
The operating profit for the Q1 2018 was KD 26.7 million and the bank prudently allocated a portion of it to strengthen its pool of available provision. The total provisions held with the bank against its credit portfolio as at the end of the 31st March 2018 were KD 154.5 million.
Sheikh Ahmad added that Bank’s total assets are KD 4,291 million mainly comprising of KD 2,144 million of loan portfolios and KD 470 million of investment securities.
The bank intends to continue its prudent policy of conservative approach towards growth by maintaining and improving the quality of its assets during 2018 and beyond, in order to meet the challenges of volatile economic and geopolitical situation in the region.
Sheikh Ahmad further added that banks’ capital adequacy ratio at the end of March 2018 was at 19.2 percent, the leverage ratio at 11.8 percent, net stable funding ratio at 113.0 percent and liquidity coverage ratio at 193 percent, comfortably exceeding the regulatory requirement set by the Central Bank of Kuwait.
The bank continues to demonstrate its cost leadership with operational efficiency, a competitive advantage for the bank, which continues to maintain one of the lowest cost/ income ratios among Kuwait banks at 28.9 percent for the quarter ended March 31, 2018. He pointed that the bank’s strong financial indicators are due to its prudent policy of cleaning its loan portfolio by writing off irregular loans but taking all the necessary steps to protect the interests of the Bank.
The NPL ratio at 0.71 percent is much lower than the industry average. Sheikh Ahmad emphasized that the Bank has focused on investing in technology and human capital to meet the customer’s expectation and satisfaction.
Our customer centric approach is improving our market share and business return. The Bank is continuously investing in automation through self-service (KIOSKs) and virtual banking to digitize and enhance branch functionality.
The Bank is promoting digital channels though social media and listening to customer suggestions to keep enhancing the Digital Channels. Another strategic vision of the bank is “people focused’ approach and the bank continues to invest in this area to build a highly skilled and motivated team to serve our customers better.
Sheikh Ahmad further commented that the bank will continue its balanced strategy and focus on available growth opportunities by financing the new projects of national importance with public and private partnership by efficient management of risks and associated returns. Sheikh Ahmad took the opportunity to thank the bank’s shareholders, valued customers, staff and regulatory authorities, emphasizing that the Bank’s Management continues to implement all the required policies for safeguarding the interest of all stakeholders’.