NATIONAL BANK OF KUWAIT
National Bank of Kuwait (NBK), the largest bank in Kuwait and highest-rated bank in the Middle East, continued to dominate its home market, generating a record increase in profits and expanding its client base across all consumer segments, private banking customers and prominent corporates.
In 2005, its net profits rose by 36.8% to a record $704m, providing another record RoE of 36.6%. The outstanding performance continues in 2006 net profits reported of $447m for the first six months of the year, 32% up on 2005 and providing a dazzling 39.7% RoE.
The bank is pursuing an ambitious regional expansion strategy. In the past two years, it has acquired a 20% stake in International Bank of Qatar and a 75% controlling share in Credit Bank of Iraq. It also set up operations in Jordan, Saudi Arabia and China (Shanghai).
NBK, whose market share in Kuwait is twice as large as its nearest rival, established NBK Capital to expand its investment banking franchise across the region, and MENA Capital Markets, which will develop and manage a range of investment services and products with a focus on the region’s booming markets.
CEO Ibrahim Dabdoub noted after the July interim results: “We are pleased with our accomplishments and our continued ability to generate record profits year after year. Our results this year reflect positive momentum across all business lines, manifested in underlying growth in business volume from new and existing clients, industry leading service quality and market share gains in our core businesses.”
