Kuwait's Boubyan posts '09 loss on provisions

Islamic lender made a net loss of $179.1m and booked $231m in provisions in 2009.
Kuwait's Boubyan posts '09 loss on provisions
NET LOSS: Kuwaits Boubyan Bank reported a net loss for 2009, after booking provisions against bad loans. (Getty Images)
By Eman Goma
Wed 24 Feb 2010 08:09 PM

Kuwaiti Islamic lender Boubyan Bank reported a net loss for 2009 on Wednesday, after booking provisions against bad loans.

Boubyan - which is 40 percent owned by the country's largest bank, National Bank of Kuwait (NBK) - made a net loss of $179.1 million in 2009.

That compares with profit of $6.38 million in 2008, the lender said in a statement on Wednesday.

The lender booked $231 million in provisions in 2009, it said in the statement.

Earlier this month, Boubyan said it received subscriptions of more than 85 percent to a share issue, which it may reopen.

It said last year it planned to raise its capital by 50 percent at 250 fils per share. Reuters calculated then that the share issue would increase the lender's capital to about $603.5 million. There are 1,000 fils to the dinar.

The lender's major shareholders NBK and Commercial Bank of Kuwait, were among the subscribers in the rights issue.

Boubyan Bank, which complies with Islam's ban on interest, competes with larger rival Kuwait Finance House and Kuwait International Bank.

The bank's shares closed 2.25 percent down on Wednesday, after the results were released. (Reuters)

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