Commercial Bank of Kuwait Financial Results (CBK) – First Half 2019

The Commercial Bank of Kuwait (CBK) announced results of its operations for the first half of the current year which indicate that the bank’s net profit (after tax deductions) scored about KD 9.84 million compared with KD 6.04 million in the same period of 2018, reflecting a rise in 

the net profit by KD 3.80 million or by 62.8%. This rise in the net profit is due to the rise in total operating income by a higher value than the rise in the total operating expenses. Therefore, the bank achieved KD 58.32 million operating profit (prior to provisions deductions), increasing by KD 4.22 million or by 7.8% compared with KD 54.10 million.

In details, total operating income increased by KD 6.25 million or by 8%, and scored KD 83.96 million compared with KD 77.71 million in the same period of 2018. This resulted from rise in item of net interest income by KD 2.20 million or by 4.7%, reaching KD 49.05 million compared with KD 46.85 million. Also, item of other operating income rose by KD 2.43 million and scored KD 5.70 million compared with KD 3.26 million. 

Total operating expenses increased by a lesser value than the increase in total operating income, its rise was KD 2.02 million or 8.6%, and scored KD 25.63 million compared with KD 23.60 million in the same period of 2018, this resulted from the rise in all items of the operating expenses, except for item of general and administrative expenses that declined by KD 1.73 million. Total provisions increased by KD 263 thousand or by 0.5%, and scored KD 48.16 million compared with KD 47.90 million. Therefore, net profit margin increased to 12% compared with 8.8% in the same period of 2018.

Total bank’s assets scored KD 4.674 billion, a 4.6% or KD 206.4 million rise compared with KD 4.468 billion in the end of 2018. It increased by 9.7% or by KD 411.6 million, if compared with total assets in the first half of 2018 when it reached KD 4.262 billion. Item of loans and advances to costumers recorded an increase of about KD 201.9 million or by 9%, and scored KD 2.455 billion (52.5% of total assets) versus KD 2.253 billion (50.4% of total assets) in the end of December 2018. It also increased by 14.9% or by KD 318.3 million if compared with the same period of 2018, when it scored KD 2.137 billion (50.1% of total assets). Percentage of total loans and advances to total deposits scored 65.3% compared with 62.9%. Furthermore, item of due from banks and other financial institutions rose by KD 92.1 million or by 24.9%, reaching KD 462.5 million (9.9% of total assets) versus KD 370.4 million (8.3% of total assets) in the end of 2018, while it increased by KD 21.8 million or by 5%, when it scored KD 440.6 million (10.3% of total assets) in the same period of last year.

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 205.4 million or by 5.5%, and scored KD 3.943 billion compared with KD 3.738 billion in the end of 2018. It also increased by KD 332.8 million or by 9.2%, if compared with the total in the end of the first half last year when it scored KD 3.610 million. Percentage of total liabilities to total assets scored 84.4% compared with 84.7%.

Results of analyzing of the bank’s financial statements calculated on annual basis indicates that all profitability indexes increased compared with the same period of 2018. Average return on equities relevant to bank shareholders (ROE) rose to 2.7% compared with 1.9%. The average return on the bank’s assets (ROA) increased to 0.4% versus 0.3%. Likewise, the average return on the bank’s capital (ROC) increased to 10.4% versus 7%. Earnings per share (EPS) rose to 5.0 Fils compared with 3.1 Fils for the same period of 2018. (P/E) scored 51.5 times compared with 78.4 times (improved), as a result of the rise in the share market price by nearly 6%, against a greater rise in the (EPS) by 61.3% compared to June 30, 2018. (P/B) scored 1.4 times versus 1.3 times.