NBK reports a net profit of USD 291 million for the first quarter of 2011

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, reported net profits of USD 291 million (KD80.8  million) for the first quarter of 2011 as compared with USD 275 million (KD 76.3 million) for the same period in 2010, an increase of 6%.

As of end of March 2011, total assets reached USD 50.2 billion (KD 13.9 billion), whilst total shareholders’ equity stood at USD 7.7 billion (KD 2.1 billion). Profitability indicators remained strong with ROA at 2.44% and ROE at 15.8%. Our NPL/Gross Loans ratio fell to 1.69% as of end of March 2011, from 1.81% in March of the previous year, with NPL coverage at 202.8%. 

Ibrahim Dabdoub, NBK’s Group Chief Executive Officer, said “NBK’s solid performance in the first quarter of 2011 demonstrates our sound financial position. We take pride in the work we have accomplished, and our results are a testament to our ability to generate strong returns despite challenging regional and global conditions. This is due to our solid core banking operations in and outside Kuwait.” Dabdoub also attributed NBK’s strong results to its successful expansionary strategy, strong capital position, and sound risk management. 

Dabdoub added that NBK’s strong performance amid volatile conditions is credited to its outstanding asset quality, backed by a conservative strategy, sound risk management, and stable management team. These attributes also helped the bank retain its position as the highest rated bank in the Middle East by the major international credit rating agencies. Moreover, NBK continues to be recognized for its achievements and outstanding position, named by Global Finance as “Best Bank in the Middle East for 2011”, and the Safest Arab Bank for a second consecutive year.  

NBK continues to enjoy the widest banking presence in Kuwait with 71 branches, which together with its growing international representation totals 177 branches worldwide. NBK’s international presence spans many of the world financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai) and Vietnam (Ho Chi Minh City). Meanwhile, the regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Qatar, Saudi Arabia, the UAE, and Turkey. 

NBK has consistently been awarded the highest credit rating of all banks in the region by Moody's, Standard & Poor's, and Fitch Ratings. The Bank’s ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its recognized and very stable management team.