Commercial Bank of Kuwait (CBK) Financial Results 2019

The Commercial Bank of Kuwait (CBK) announced results of its operations for the ending year of 2019, which indicate that the bank’s net profits (after tax deductions) scored KD 60 thousand, declining by KD 63.71 million compared with KD 63.77 million in 2018, CBK didn’t achieve any profits related to the bank’s shareholders in 2019. This decline in the net profit is mainly due to the great increase in total provisions by KD 69.1 million or by 175.4% reaching KD 108.46 million, while the operating profit scored by KD 108.52 million. The following graph displays development in the shareholders’ profit level during the period (2008-2019):

In details, total operating income increased by KD 7.8 million or by 5.1%, scoring KD 158.7 million compared with KD 150.9 million in 2018. That resulted from the rise in the item of net interest income by KD 3.4 million, reaching KD 97.3 compared with KD 93.9 million. Also, item of other operating income increased by KD 2.6 million and scored KD 6.9 million compared with KD 4.3 million.

Total operating expenses increased by a lower value than the increase in the operating income, by KD 5.3 million or by 11.8%, to reach KD 50.2 million compared with KD 44.9 million in 2018, due to the rise in all items except for item general & administration expenses that decreased by KD 2.5 million.

Total bank assets scored KD 4.873 billion, increasing by KD 405.7 million or by 9.1% compared with KD 4.468 billion in 2018. Item of loans and advances increased by KD 13.6 million or by 0.6%, reaching KD 2.267 billion (46.5% of total assets) versus KD 2.253 billion (50.4% of total assets) in 2018, percentage of loans and advances to the item of deposits and balances scored 60.5% compared with 64.0%. Also, item of due from banks and other financial institutions rose by KD 510 million or by 137.7%, scoring KD 880.4 million (18.1% of total assets) compared with KD 370.4 million (8.3% of total assets) in 2018. 

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 402.8 million or by 10.8%, and scored KD 4.141 billion compared with KD 3.738 billion in the end of 2018. Percentage of total liabilities to total assets scored 85.0% compared with 83.7% in 2018. 

The bank announced that it will not distribute any cash dividends or bonus shares, cash dividends scored 20 Fils per share and 10% in bonus shares in 2018, indicating that the bank decreased its distributions.