Kuwait's NBK expects 20% profit surge in H1

INCOME BOOST: NBK expects profit growth in the first half of 2008 to exceed 20%, Dabdoub has said. (ITP Images)

National Bank of Kuwait (NBK), the country's biggest lender, expects net profit to grow more than 20% in the first half of the year, Chief Executive Ibrahim Dabdoub told CNBC Arabiya on Sunday.

"Profit growth... will exceed more than 20% in the first half," he said, when asked whether recent consumer lending restrictions by the central bank would hit the bank's profit.

Dabdoub said the bank had diversified its sources of income by expanding abroad with foreign branches contributing 20% to the bank's net income. "We expect them to contribute 50% by 2015," he added.

The Central Bank of Kuwait has imposed lending restrictions for consumer loans which took effect end-March to battle record inflation hitting 10.14% in February.

NBK has expanded in the Middle East to offset rising competition at home by buying Al-Watany Bank of Egypt and a 40% stake of unlisted Istanbul-based Turkish Bank last year.

It is also active in Qatar through its affiliate International Bank of Qatar (IBQ). NBK boosted net income in the first quarterly 28% to a record 82 million Kuwaiti dinars ($309.1 million). 

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