Al-Ti­jari re­ports op­er­at­ing profit of KD 53.2m for H1 2017

Kuwait Times - - BUSINESS -

Com­mer­cial Bank of Kuwait an­nounced its fi­nan­cial re­sults for the half year ended 30th June 2017. Com­ment­ing on the fi­nan­cial re­sults, Ali Al-Mousa, the Bank’s Chair­man said that the Bank’s to­tal as­sets reached KD 4,164.0 mil­lion at the end of June 2017 (com­pared with KD 4,137.9 mil­lion at the end of June 2016) and op­er­at­ing in­come in­creased to KD 74.3 mil­lion from KD 70.7 mil­lion for the 1st half 2016.

Al-Mousa ex­plained that the Bank wit­nessed a growth in the fee in­come by 8.9 per­cent and 8.0 per­cent in the in­ter­est in­come re­sult­ing in op­er­at­ing profit of KD 53.2 mil­lion for the six months pe­riod of 2017 up by 4.5 per­cent com­pared with KD 50.9 mil­lion for the same pe­riod in 2016.

Al-Mousa em­pha­sized on the Bank’s pru­dent & conservative pol­icy of build­ing the re­quired pro­vi­sions, with pro­vi­sions amount­ing to KD 141.06 mil­lion with cov­er­age of 1207 per­cent for NPL. Build­ing such buf­fers will help to ab­sorb any shock re­sult­ing from the volatile eco­nomic, geopo­lit­i­cal sit­u­a­tion in the re­gion and any ad­verse con­di­tions. The net profit af­ter al­lo­ca­tion of pro­vi­sions was KD 2.0 mil­lion com­pared to KD 11.5 mil­lion for the same pe­riod last year, de­creas­ing by 82.7 per­cent.

Al-Mousa re­ferred to the other strong fi­nan­cial in­di­ca­tors at the end of June 2017 where the Bank con­tin­ues to main­tain a lower NPL ra­tio which reached 0.49 per­cent a much lower than the in­dus­try av­er­age, cap­i­tal ad­e­quacy ra­tio stood at 18.39 per­cent, the lever­age ra­tio stood at 10.4 per­cent, liq­uid­ity cov­er­age ra­tio stood at 175.0 per­cent and Net Sta­ble Fund­ing Ra­tio stood at 106.4 per­cent com­fort­ably ex­ceed­ing the min­i­mum re­quire­ment set by the Cen­tral Bank of Kuwait. The Bank con­tin­ues to demon­strate its cost lead­er­ship with op­er­a­tional ef­fi­ciency, a com­pet­i­tive ad­van­tage for the Bank which con­tin­ues to main­tain one of the low­est cost/in­come ra­tios among Kuwait banks at 28.5 per­cent for the pe­riod ended 30th June 2017.

Ali Al-Mousa

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