National Bank of Kuwait
The judging was close, but in the end it was National Bank of Kuwait (NBK) that won the day owing to its continued strong performance and plans for significant expansion in the Middle East.
NBK has already met with success in implementing its expansion strategy. It has obtained approval from local authorities in Jordan and Saudi Arabia to open branches there in the second half of 2003. In Bahrain, it obtained approval to convert an offshore operation into a full-service bank. It now plans to expand into Qatar, Egypt and other markets in the region.
The bank’s performance in 2002 was strong. In a competitive domestic market, it made a small gain in net profit and grew assets by almost 18%. ROE remained at a respectable 24%. NBK also strengthened its balance sheet via the successful placement of a $450m bond issue.
Thanks to a new customer relationship management system, the bank expanded on its lead position in Kuwait, taking a 35% market share for loans and deposits and a 42% share for cards.
“NBK is the only local bank with ‘one-stop shopping’ revolving around the customer’s wants and needs, and the only bank with all of the tools, discipline and perseverance required to do so,” said Ibrahim Dabdoub, NBK chief executive.
The runner-up was Gulf Bank, which had a fine performance in 2002.
