Commercial Bank of Kuwait (CBK) Financial Results – 30 September 2019

The Commercial Bank of Kuwait (CBK) announced results of its operations for the first nine months of the current year, which indicate that the bank’s achieved net profit (after tax deductions) of KD 16.67 million compared with KD 15.25 million for the same of period 2018, reflecting a rise by KD 1.42 million or by 9.4%. This increase in net profits is due to the absolute rise in total operating income by a higher value than the rise in total operating expenses. Therefore, the bank achieved an operating profit (before provisions deduction) by KD 85 million, rising by KD 3.5 million or by 4.3% versus KD 81.5 million in the same period of last year.

In details, total operating income increased by KD 8.09 million or by 7.1%, and scored KD 122.24 million compared with KD 114.16 million for the same period of 2018. This resulted from the increase in item of net interest income by KD 3.54 million, reaching KD 73.66 million compared with KD 70.12 million. Also, items of fees & commissions and other operating income rose by a total of KD 3.94 million.

On the other hand, total operating expenses increased by a lower value than the increase in total operating income, i.e. by KD 4.59 million or by 14.1%, reaching KD 37.26 million compared with KD 32.67 million for the same period of 2018, as a result of the increase in the item of staff expenses by KD 3.92 million and item of depreciation & amortization by KD 2.52 million, while item of general & administrative expenses decreased by KD 1.85 million. Total provisions rose by KD 2.03 million or by 3.1%, and scored KD 67.68 million compared with KD 65.65 million. Therefore, the net profit margin dropped to 13.4% compared with 14.5% for the same period 2018.Total bank’s assets scored KD 4.720 billion indicating an increase by 5.6% or by KD 252.3 million, compared with KD 4.468 billion in the end of 2018. Total assets increased by 11.6% or by KD 492.3 million when compared with total assets in the same period of 2018, that scored KD 4.228 billion. Item of dues from banks and other financial institutions increased by KD 358.9 million or by 96.9%, and scored KD 729.3 million (15.5% of total assets) versus KD 370.4 million (8.3% of total assets) in the end of 2018. It also rose by 110.2% or by KD 382.4 million, when it is compared with the same period of 2018 in which it scored KD 346.9 million (8.2% of total assets). Item of loans and advances to customers rose by KD 3.9 million or by 0.2%, scoring KD 2.257 billion (47.8% of total assets) compared with KD 2.253 billion (50.4% of total assets) in the end of 2018. It rose by 2.7% or by KD 58.8 million if compared with the same period of 2018, when it scored KD 2.198 billion (52% of total assets). Percentage of total loans and advances to total deposits scored 60.5% compared with 66% end of September 2018.

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 265.4 million or by 7.1%, scoring KD 4.003 billion compared with KD 3.738 billion in the end of 2018. It increased by KD 460.2 million or by 13% if compared with the total in the same period of last year when it was at KD 3.543 billion. Percentage of total liabilities to total assets scored 84.8% compared with 83.8%.Results of analyzing of the bank’s financial statements calculated on annual basis, indicate that most bank’s profitability ratios showed a positive performance compared with the same period of 2018. The return on average equities relevant to bank shareholders (ROE) rose slightly to 3.1% compared with 3%. The return on average assets (ROA) also increased slightly to 0.48% versus 0.47%. Meanwhile, the return on average capital (ROC) dropped slightly to 11.7% versus 11.8%. Earnings per share (EPS) increased to 8.4 Fils versus 7.7 Fils for the same period of 2018. 

(P/E) scored 44.6 times versus 49.2 times (improved), due to the rise in EPS by 9.1% against a decline in the share market price by 1% compared to their levels on 30 September 2018. (P/B) scored 1.4 times compared with 1.1 times.