Commercial Bank of Kuwait (CBK) has announced a net profit of KD 5.4 million (USD 19.2 million) for the first quarter of 2014, up KD 4.6 million (USD 16.3 million) compared to the same period 2013..
The CBK’s operating profit before provisions for the first quarter hit KD 24.6 million (1Q2013: KD 24.7 million), according to a press release. The bank allocated about KD 19 million of these profits as specific and judgmental provisions against the loan and investment portfolios, it said.
Total provisions held with the bank against problem loans as at the end of the 1st quarter amounted to KD 130.4 million with the provision coverage ratio of 335 percent (December 2011: 92 percent, December 2012: 169 percent and December 2013: 367 percent), the bank said in its release.
This loan provision coverage percentage is among the best percentages in the Kuwaiti banking system and exceeds the prevailing percentage in the banking sector, it added.
As regarding the non-performing loans – NPL to total loan portfolio ratio which is considered as one of the important measurement indicator of loan portfolio quality in banks, this ratio fell from 2.9 percent in 1Q2013 to 1.5 percent in 1Q2014 (December 2011: 6.69 percent, December 2012: 2.76 percent and December 2013: 1.35 percent), it said.
Its total assets at the end of March 2014 reached KD 3.9 billion with shareholders equity of KD 562.3 million (December 2013: KD 553.0 million). The capital adequacy ratio at the end of March 2014 is 18.78 percent which exceeds the minimum 12 percent required by the Central Bank of Kuwait, and is more than twice the minimum ratio mandated by Basel Committee.
Additionally, the bank is preparing to issue subordinated bonds of KD 120 million in the near future which will solidify the Bank’s capital base on the one hand and boost its business activities and operations on the other hand, it noted.
Source : KUNA Kuwait News agency
