NBK net profit rises to $1.08bn in 2012
Kuwait, January 21, 2013
National Bank of Kuwait (NBK), the largest Kuwaiti bank, has reported net profits of KD305.1 million ($1.08 billion) for 2012 compared to KD302.4 million during the same period a year ago.
At year end, NBK Group’s total assets reached $58.4 billion up from $48.5 billion in 2011, while total group shareholders’ equity reached $8.2 billion, up 6 per cent year on year.
Announcing the results, Group CEO Ibrahim Dabdoub said, "NBK managed to deliver a strong set of results for the year notwithstanding the ongoing challenges. 2012 was a turbulent year for the banking sector in Kuwait as the operating environment remained stagnant."
Government spending, he pointed out, was insufficient in 2012 and the tendering of new projects remained behind schedule leading to slower economic activity and an underperforming stock market.
"Additionally, the geopolitical tensions led to further pressures on the business sentiment both locally and in the region," he added.
However, Dabdoub said there had been a general improvement in the outlook for the local operating environment in 2013 as the government adopted a more dynamic fiscal policy, most importantly accelerating spending on mega projects.
“The recent directions from the highest authority and the proposed measures to boost economic activity and spur growth are expected to lift the overall sentiment and create new opportunities in the local economy”, Dabdoub added.
According to Dabdoub, 2012 was a remarkable year on the strategic level. During the year, NBK continued to deliver on its income diversification efforts through a major strategic move increasing its stake in Boubyan Bank to 58.4 per cent transforming it into a subsidiary of NBK group.
This move is key to strengthening our presence in Kuwait’s Islamic banking market and opens new growth prospects for the Group, he noted.
Additionally, NBK continued to strengthen its positioning in its regional and international markets with more focus on GCC operations. NBK’s international banking profits recorded a year-on-year growth of 22.7 per cent in 2012.
Dabdoub stressed on NBK’s focus on core banking operations both in Kuwait and regionally. NBK’s total operating income remained strong at $2.31 billion for the year up from $1.92 billion a year earlier.
"The lender's total operating income in 2012 includes revaluation gains of $290 million resulting from the consolidation of Boubyan Bank," he added.-TradeArabia News Service