Commercial Bank witnesses a healthy growth in key areas of business and revenue

KUWAIT: Commercial Bank of Kuwait announced a net profit of KD 9.8 million for the first half of 2019 compared to KD 6.4 million for the same period of last year. The operating profit before provision was KD 58.3 million compared to KD 54.1 million for the 1st half of 2018, recorded a growth of 7.8 percent. The bank witnessed a healthy growth in the key areas of business and revenue. Loans increased by 9 percent to reach KD 2,455.0 million and investment securities increased by 2.0 percent to reach KD 560.0 million. Operating income at KD 84.0 million grew by 8 percent, interest income by 4.7 percent, fee income by 4.0 percent and foreign exchange income by 33.0 percent

Sheikh Ahmad Duaij Al-Sabah, the Bank's Chairman, commented that the bank continues to focus on asset quality, digitalization, operational efficiency and customer service. The operating profit for the 1st half of 2019 was KD 58.3 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 30th June 2019 were KD 179.5 million.

Sheikh Ahmad added that during the last one year the net growth in loans was more than KD 300 million, the momentum will continue and the Bank will keep on providing funding to mega projects of national importance as well as to local business groups. Furthermore, the bank will continue its prudent policy of maintaining a quality assets portfolio during 2019 and beyond, in order to meet the challenges of the volatile economic and geopolitical situation in the region.

Sheikh Ahmad further added that the bank's capital adequacy ratio at the end of June 2019 was 18.1 percent, the leverage ratio at 11.4 percent, net stable funding ratio at 107.2 percent and liquidity coverage ratio at 182.0 percent comfortably exceeded the regulatory requirement set by the Central Bank of Kuwait. 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 zero is a clear demonstration of this strategy.

Sheikh Ahmad went on to add that the digitalization of processes to enhance customer experience at various touch points and investment in technology and human capital to exceed customer expectations is continuing at a rapid pace. New initiatives were taken during second quarter of the year and new features like, but not limited to, change transfers limit via mobile and online banking, change security questions/answers via mobile and online banking, KNET mobile (OTP) amendment via mobile and online banking, user ID retrieval via CBK mobile and online banking, user ID unlock on CBK mobile and online banking and enabled T-Pay service for business accounts. Moreover, in a continuous effort towards Kuwaitization, the bank has increased the Kuwaitization ratio to 75.7 percent by June 2019.

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.