Commercial Bank of Kuwait warns of tough Q1

CBK's chairman tells TV channel profit for first 3 months will not match year-earlier period.
Commercial Bank of Kuwait warns of tough Q1
By Rania El Gamal
Thu 19 Feb 2009 01:08 PM

Commercial Bank of Kuwait (CBK) chairman warned that the first quarter would be "difficult" for the lender and said profit for the first three months will not match the year-earlier period.

"The first quarter will be difficult ... Profit of the first quarter will not be like last year. God willing, it will be good taking into consideration the current circumstances," Abdul-Majeed al-Shatti told CNBC Arabia television in an interview which is yet to be broadcast.

"A considerable part of banks' profit comes through investments in international markets and the local stock market. A portion of these investments has fallen," he said in the interview.

His remarks were made available to Reuters on Thursday.

CBK posted a profit dive in 2008 and booked provisions last year to offset the impact of the global financial crisis.

In the first quarter of 2008, Kuwait's third-biggest bank by market value made a 22 percent rise in net profit to 34.12 million dinars ($115.8 million).

CBK made a fourth-quarter loss of about 4.17 million dinars, according to Reuters calculations based on full-year data provided by the bank.

CBK's 2008 profit fell 16.3 percent to 100.7 million dinars.

The bank said it booked 57.7 million dinars of provisions for possible impairment in 2008 against loans and investments.

Shares of CBK, which have fallen 13 percent this year, were steady at 12.24pm, UAE time. (Reuters)

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.