NBK reports net profits of USD 925 million for 2009, 4% Y-o-Y growth

Dabdoub: Our net operating income grew to USD 1,808 million in 2009      in spite of unprecedented domestic and international market conditions

NBK’s conservative strategy and its sound risk management policies were key elements to our ability to navigate through the crisis
National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest rated in the Middle East, announced net profits of USD 925 million (KD 265.2 million) for 2009, up 4% from the previous year. The increase in profits was attained even after taking additional and voluntary general provisions as a precaution against any further deterioration in economic conditions and financial markets due to the global financial crisis. NBK’s operating income rose to USD 1,808 million (KD 518 million) from USD 1,773 million (KD 508 million) in 2008, total assets reached USD 45 billion at the end of 2009 and shareholders’ equity rose to USD 6 billion. Other profitability indicators remained strong by regional and international standards: Return on Assets (ROA) was 2.2% while the Return on Equity (ROE) recorded 18.4% for the year.

Ibrahim Dabdoub, NBK’s Group Chief Executive Officer, noted that the achievement of a net profit growth of 4%, despite the unfavorable domestic and regional operating environment, underscores the Group’s solid financial position. ”The increase in our operating income provides strong reassurance as to our ability to continue delivering strong results from our core businesses inside and outside of Kuwait.”

NBK’s Board of Directors has recommended the distribution of a cash dividend equivalent to 40% of the nominal value of the share (40 fils per share). The board also recommended a bonus share distribution of 10% (10 shares for every 100 shares) to shareholders of record at the time of the General Assembly meeting. 

Dabdoub viewed NBK’s impressive results against the backdrop of a global crisis as a confirmation of the bank’s ability to sustain its strong performance through challenging market conditions. He credits this performance to the Bank’s progressive, yet conservative strategy, sound risk management policies, excellent governance, stable management team, as well as its clear vision. “These fundamental strengths have also contributed to advancing NBK’s ranking to 38th among the world’s 50 safest banks in 2009 by Global Finance, as well as to maintaining our credit rating as the top rated bank in the Middle East.” 
“Our regional expansion strategy proved successful as confirmed by the resilience of our profits and the diversity of our income sources”, Dabdoub added. “Our operations outside Kuwait continued to provide a stronger foundation for the stability of our profits with growing contributions from Egypt, Qatar, and Turkey.” In addition to its leading regional standing, NBK remains the dominant franchise in its domestic market. Its domestic market position has been recently enhanced with the acquisition of a 40% stake in Kuwait’s smallest Islamic institution, Boubyan Bank. The acquisition gives NBK access to the growing Islamic banking market in Kuwait.
NBK is the highest rated bank in the Middle East by Moody's, Standard & Poor's, and Fitch Ratings. The Bank’s ratings are supported by its strong capitalization, high asset quality, prudent lending, and its much disciplined approach to risk management, in addition to its experienced and highly qualified management team. NBK currently enjoys the largest presence in Kuwait with 70 branches, as well as a growing regional and international network comprising an additional 106 branches covering 16 countries in both the MENA region and the world’s leading financial centers including London, Paris, New York, Geneva, China, Vietnam, and Singapore.