KUWAIT CITY, Oct 21: Commercial Bank of Kuwait announced net profit of KD 25.4 million for the nine months period of 2015 compared with KD 25.3 million of last year. The operating profit before provision was KD 74.0 million compared to KD 73.5 million for the same period during last year. Commenting on the bank’s financial results, Yaqoub Al-Ebrahim, the banks’ spokesman said Commercial Bank’s total assets at the end of September 2015 was KD 4.0 billion (December 2014: KD 4.2 billion), the reduction in the assets represents the successful implementation of new liquidity management strategy.
He pointed that the bank is continuing its prudent policy to use the operating profits to build the provisions and aggressive policy of write off adopted to clean the loan portfolio and reduce the NPL ratio lower than the industry average. The banks’ capital adequacy ratio at the end of September 2015 at 18.26% is 1.5 times higher than the minimum 12.5% required by the Central Bank of Kuwait, and leverage ratio at 10.9% is more than 3 times higher than the minimum requirement of 3% .
The bank witnessed a growth in dividend income by 127% and the fee income grew by 9%. The bank continues to maintain the lowest non-performing loans ratio at 0.94% as at Sept 30, 2015. Al-Ebrahim further commented that the bank’s strategic objectives to diversify its income sources and mitigation of risks, particularly those related to geographical and sector concentration are being pursued in letters and spirit.
This strategy bore its fruit and will continue yielding benefits in future also. The loans portfolio diversified by reducing concentration in higher risk sectors. Al-Ebrahim took the opportunity to thank the bank’s shareholders, valued customers, staff emphasizing that the Bank’s Management continues to implement all the required procedures for safeguarding the interest of all the stakeholders’