Ti­jari re­ports net profit of KD 27.5m

Com­mer­cial Bank reg­is­ters 8.2% jump in profit for 9 months of 2016

Kuwait Times - - BUSINESS -

Com­mer­cial Bank of Kuwait an­nounced net profit of KD 27.5 mil­lion for the nine months pe­riod of 2016 com­pared to KD 25.4 mil­lion of the same pe­riod last year, a growth of 8.2 per­cent. The fee in­come wit­nessed a year-on-year growth of 8.8 per­cent, for­eign ex­change in­come 61 per­cent and in­vest­ment port­fo­lio in­come 31.3 per­cent. The Bank con­tin­ues to main­tain solid level of op­er­at­ing profit be­fore pro­vi­sion amount­ing to KD 74.5 mil­lion com­pared to KD 74.0 mil­lion for the same pe­riod last year.

Com­ment­ing on the Bank’s fi­nan­cial re­sults, the Bank’s spokesman Ya­coub Al-Ebrahim said, Com­mer­cial Bank’s to­tal as­sets at the end of Septem­ber 2016 reached KD 4,047 mil­lion (Septem­ber 2015: KD 4,035 mil­lion). The Banks’ cap­i­tal ad­e­quacy ra­tio at the end of Septem­ber 2016 at 16.86 per­cent is higher than the min­i­mum 13.5 per­cent re­quired by the Cen­tral Bank of Kuwait, and lever­age ra­tio at 10.6 per­cent is more than three times higher than the min­i­mum re­quire­ment of three per­cent.

Al-Ebrahim fur­ther added that the Bank con­tin­ues to main­tain a lower NPL ra­tio which reached 0.91 per­cent at the end of Septem­ber 2016, one of the best ra­tios in Kuwait bank­ing sys­tem with avail­able pro­vi­sion­ing cover­age of 658.8 per­cent.

Al-Ebrahim con­cluded his state­ment by re­fer­ring to the Bank’s solid per­for­mance which was rec­og­nized by the In­ter­na­tional rat­ing agen­cies in their re­cently pub­lished credit opin­ion. This was ob­vi­ously re­flected by Fitch Rat­ings up­grad­ing the Vi­a­bil­ity Rat­ings (VR) of the Bank to ‘bb’ (from ‘bb-’) ow­ing to its im­prov­ing fi­nan­cial pro­file fol­low­ing the suc­cess­ful ex­e­cu­tion of strate­gic ob­jec­tives, busi­ness re­or­ga­ni­za­tion and ex­pected im­prove­ment in earn­ings and ad­e­quate cap­i­tal­iza­tion. Sim­i­larly, Moody’s in their re­cently pub­lished re­port stated that the Bank has made sig­nif­i­cant progress in clean­ing its book of the ac­cu­mu­lated prob­lem loans, dras­ti­cally cut­ting its non-per­form­ing loans-to-gross loans ra­tio along with high­light­ing the Bank’s suc­cess in build­ing up sub­stan­tial pro­vi­sions against po­ten­tial losses. Moody’s re­port fur­ther stated that pre-pro­vi­sion in­come stood at 2.5 per­cent of aver­age to­tal as­sets is slightly above the sys­tem aver­age.

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