NBK reports a net profit of USD 702 million in the nine months of 2013

• Dabdoub: NBK's solid results are mostly driven by the strong performance of core banking operations
• The progress seen in Kuwait's operating environment confirms our improved outlook
• Strong balance sheet growth; total assets up 15.5% YoY to USD 67 billion and shareholders' equity up 4% YoY, to USD 8.7 billion
• Excluding last year's exceptional gains, 9M2013 net profits are up 34.7% YoY

National Bank of Kuwait (NBK), the largest Kuwaiti bank, reported net profits of USD 702 million (KD 198.6  million) for the first nine-month of 2013 compared with USD 809 million (KD 228.9 million) for the same period in 2012. Adjusting for the exceptional gains of USD 288 million recognized in 9M2012 on the consolidation of Boubyan Bank, net profits recorded a 34.7% year on year growth.

As of end of September 2013, NBK Group's total assets reached USD 67.0 billion (KD 19.0 billion) up 15.5% compared to September 2012, while total shareholders' equity increased by 4.0% year on year to USD 8.7 billion (KD 2.46 billion). Loans and advances reached USD 37.2 billion (KD 10.5 billion) at September-end 2013 up 9.3% compared to September 2012 and customer deposits reached USD 35.5 billion (KD 10.0 billion), up 16% compared to last year.

Ibrahim Dabdoub, NBK's Group Chief Executive Officer said “NBK's profits for the period reaffirm the group's strong position in its domestic and regional markets. Despite the challenges in the corporate domestic market and the political instability in some of the regional markets, the bank managed to deliver a strong set of results with net profits growing at 34.7% year on year after normalizing for the revaluation gains from Boubyan's consolidation in 9M2012”. “We continued to focus on core banking business across our locations. In the 9M2013 period and excluding the exceptional gain recognized last year, NBK's net operating income grew by 15.8% year on year to USD 1,652 million (KD 467.1 million).” Dabdoub added.

Dabdoub also confirmed that the domestic operating environment continued to improve and the overall outlook is turning more positive. “We have started witnessing some acceleration in the tendering, award and execution of some of the large projects as the government proves determined to advance the execution of the development plan”.

Strategically, Dabdoub also highlighted that NBK is progressively implementing its income diversification strategy. “Our regional and international strategy remains on track. We are focusing our efforts on the GCC countries to leverage NBK's strong franchise there and to benefit from the strong economic outlook and the growth opportunities available. Moreover, our expansion into Islamic banking through the acquisition of 58.4% of Boubyan Bank continues to pay off as Boubyan's contribution to the group's profitability and balance sheet increases over time.”, Dabdoub added.

NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody's, Fitch Ratings and Standard and Poor's. The Bank's ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team. NBK was also named among Global Finance's list of the 50 safest banks in the world for the eighth consecutive time.

NBK continues to enjoy the widest banking presence with an international network reaching 170 branches worldwide. NBK's international presence spans many of the world's leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Qatar, Saudi Arabia, the UAE, and Turkey.