Kuwait's NBK sees Q3 net profit slump by 15%

National Bank of Kuwait says it made net profit of $204m in the three months to end of September
Kuwait's NBK sees Q3 net profit slump by 15%
National Bank of Kuwait
By Reuters
Wed 15 Oct 2014 03:21 PM

National Bank of Kuwait (NBK), the Gulf Arab state's largest commercial lender, reported a 15.6 percent drop in third-quarter net profit on Wednesday.

The bank made a net profit of KD59.1 million ($204.7 million) in the three months to the end of September, down from KD70.1 million a year ago, a bourse filing said.

Five analysts polled by Reuters, on average, forecast NBK to post a net profit of KD78.95 million in the third quarter.

An 8.3 percent rise in third-quarter operating profit suggests provisions - or money set aside to cover potential bad loans - may have hit earnings.

"NBK's conservative management practices and its strong financial position helped the bank sustain its profitability and resilient market position," Nasser al-Sayer, chairman of NBK, said in the statement.

The decline in third-quarter net profit came despite the bank posting a 7.8 percent increase in its operating revenue versus the same quarter of 2013.

Aiding this increase was a 10.2 percent year-on-year gain in total loans and advances, which stood at KD11.6 billion on September 30.

Deposits rose 7.5 percent to KD10.8 billion over the same time period.

NBK's fourth-quarter net profit is expected to be boosted significantly after it sold a 30 percent stake in International Bank of Qatar at the beginning of October. It said it would book a gain of KD25 million on the transaction.

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