KUWAIT CITY, Feb 8: National Bank of Kuwait (NBK) received Central Bank of Kuwait approval to increase the bank’s authorized capital from KD 504 million to KD 600 million. The approved increase in authorized capital gives the bank the flexibility to increase its paid-in-capital at a later stage, if needed.
The move is in line with the bank’s plans to maintain healthy capitalization ratios in light of the Basel 3 implementation and the regulations of the Central Bank of Kuwait in this regards. Also, this approval will allow the bank to better manage the timing of any potential increase in paid-in-capital to continue capturing growth opportunities, especially in Kuwait as the government’s capital spending plan remains intact.
NBK continues to play a key role in financing a large number of the planned infrastructure projects as the bank continues to be the largest beneficiary of the growing government expenditure program, leveraging the high growth opportunity in the project finance business.
It is worth mentioning that in 2015, NBK issued $700 million in additional Tier 1 securities and KD 125 million in Tier 2 subordinated bonds. The bank’s capital adequacy ratio stood at 16.8 percent as of end-December 2015, comfortably above regulatory requirements.
NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody’s, Fitch Ratings and Standard and Poor’s.
The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team. NBK was also named among Global Finance’s list of the 50 safest banks in the world for the tenth consecutive time.
NBK enjoys the widest banking presence with a local and international network reaching 4 continents. NBK’s international presence spans many of the world’s leading financial centers including New York, Europe, GCC, Middle East, Singapore as well as China (Shanghai).