MANAMA, 11 October 2007 — National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated bank in the Middle East, reported a record net profit of $790 million at the end of nine months, a 16 percent increase from last year’s $681 million profits for the same period. The bank’s profitability ratios remained on a par with the highest international benchmarks, reflected in a 3.33 percent return on average assets and 32.2 percent return on equity. Ibrahim Dabdoub, chief executive officer of NBK, said: “The breadth and diversity of our revenue sources have been key factors in maintaining our growth momentum and providing a solid base for the consistent rise in our profitability since our inception … our performance is driven by growth in our core operations and business activities, even as we maintain our discipline in managing risks and continue to invest in people, technology, and regional expansion.” The bank has recently concluded two major deals, namely the acquisition of a controlling share in Egypt’s Al-Watany Bank as well as a 40 percent stake in Turkish bank.
Weak Dollar Hits GIB’s Earnings
Arab News
MANAMA — Bahrain-based Gulf International Bank (GIB) reported consolidated net income after tax of $184.5 million for the nine months ended Sept. 30, lower than $193.3 million gained in the first nine months of 2006. The weaker US dollar has impacted the bank’s earnings. Total operating expenses also rose $13 million, reflecting the impact of the weaker US dollar on foreign currency denominated expenses. Consolidated total assets were $28.3 billion, higher by $3.5 billion in the year-ago level due to an increase in loans and advances, which increased by $4.2 billion to $12.3 billion. The high level of liquidity prevailing within the region contributed to a $2.2 billion increase in deposits from customers while deposits from banks rose $0.6 billion. Term financing totaled $3.3 billion in the period under review.
Yamamah Cement Profit Balloons
Reuters
RIYADH — Yamamah Cement, Saudi Arabia’s second-largest cement maker by market value, said third quarter profit surged 57 percent on higher sales, beating most analysts’ forecasts. Yamamah made a net profit of SR228.4 million ($60.91 million) in the three months to Sept. 30, the company said in a statement on the Saudi bourse website yesterday. Operating profit in the nine-months to Sept. 30 jumped 24 percent to SR604.1 million, the company said. Earnings per share in the nine months rose to SR4.48 from SR3.63 in the year-earlier period. The company sold more cement after expanding its plants, Yamamah said. Demand for cement is surging in Saudi Arabia. By the end of last week, more than $365 billion of projects had been announced in the kingdom, according to London-based Middle East Economic Digest.
Abu Dhabi to Host Islamic Finance Forum
Mehmood Rafique, Arab News
MANAMA — The upcoming International Islamic Finance Congress (IIFC) to be held in Abu Dhabi on Nov. 19-22 will focus on Islamic banking and finance and the growing challenges, including the harmonization of Shariah standards. The event comes at a time when the Islamic banking industry is rapidly growing throughout the world, especially in the UAE, which has an average annual growth rate of 18 percent. However, one of the biggest obstacles to the growth of global Islamic finance is the lack of universal standardization. A presentation from the General Council for Islamic Banks and Financial Institutions on new Islamic financial product development will be one of the salient features of the congress. The IIFC will also include workshops on the essentials of Islamic finance, Islamic finance risk management, liquidity management and sukuk.
Albilad Bank’s Profit Jumps 27%
Reuters
RIYADH — Saudi Arabia’s newest bank, Albilad, said third-quarter profit rose 27.3 percent to SR39.1 million riyals ($10.4 million), the best performance yet by a Saudi lender. Net operating income jumped 39 percent to SR197.4 million, despite a decline in banking fees, which are made up mainly of brokerage commissions, the bank said in a statement on the Saudi bourse website. The bank said on Tuesday Chief Executive Officer Azzam Aba Alkhail had resigned and named a former executive of HSBC Holdings Plc as his temporary replacement. The Islamic lender’s board accepted Aba Alkhail’s resignation with immediate effect, without saying why he was stepping down. It appointed Radi Faqih as interim CEO, just a few days after he joined the bank from HSBC’s Islamic finance division.