Commercial Bank of Kuwait Q1 PPOP Posts KD 22.4 Mln

Commercial Bank of Kuwait announced an operating profit before provisions of KD 22.403 million for the period from 01/01/2012 till 31/03/2012, down from KD 24.689 million for the same period in 2011.

This was allocated as specific and judgmental provisions against the loan and investment portfolios resulting in a net profit attributable to shareholders of the parent bank for the three months to 31st March 2012 of KD 0.329 million, down from KD 1.332 million in the first quarter of 2011. The bank continues a prudent policy towards building up a strong provision base and consolidating its balance sheet.

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 in Kuwait with 24.65% for 1Q2012.

Asset quality indicators showed improvement with non-performing loans falling during the period ended 31 March 2012 to 6.4% (1Q2011: 14.8%) with provision coverage of 100% (1Q2011: 52%). Commercial Bank ‘s total assets at the end of March 2012 reached KD 3.8 billion (12/2011: KD 3.7 billion) with shareholders equity of KD 518.9 million (12/2011: KD 530.5 million). The capital adequacy ratio at March 2012 is 18.67% (12/2011: 18.58%) which exceeds the minimum 12% required by the Central Bank of Kuwait. The bank continues to have a strong capital base with more than twice the international ratio required by Basel II, Zawya reported.