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National Bank of Kuwait (NBK) reported a record net profit of $790 million during the first nine months of 2007 compared to $681 million for the same period last year.
The bank’s profitability ratios remained on a par with the highest international benchmarks, reflected in a 3.33 per cent return on average assets and 32.2 per cent return on equity.
Commenting on the results, Ibrahim Dabdoub, chief executive officer of NBK, said: “We are pleased with our strong financial results and the robust organic growth achieved across all business lines, both domestically and across the region.
“The breadth and diversity of our revenue sources have been key factors in maintaining our growth momentum and providing a solid base for the consistent rise in our profitability since our inception.
“We are especially proud that our performance is driven by growth in our core operations and business activities, even as we maintain our discipline in managing risks and continue to invest in people, technology, and regional expansion.
“The investments we are making should provide us with the economies of skills and scope to maintain our leading position in the local market and across the region. These will also support our ability to offer ever-more sophisticated products and services tailored to meet the diverse needs of various customer segments.”
Commenting on the bank’s strategy to grow regionally, Mr Dabdoub said: “These are good times in the GCC and the Middle East region in general, with a very favourable economic environment that offers significant opportunities, not only for organic growth, but also to pursue our regional expansion strategy. Indeed, we’ve had a very active quarter and year on the regional front. We have recently concluded two major deals: the acquisition of a controlling share in Egypt’s Al Watany Bank as well as a 40 per cent stake in Turkish Bank. We have also received a branch license in the UAE, and expect to set up operations there soon.
“We are quite confident that these new markets will start delivering positive returns as early as next year.”
NBK’s recent acquisitions complement its wide presence in domestic, regional, and international markets.
The bank operates 63 branches in Kuwait – by far the largest domestic network – and has plans to continue expanding its network in coming years.
