KUWAIT CITY: Kuwaiti banks’ net profits have remarkably increased in the first half of 2015 backed by an improving operating environment and a growing government’s spending on mega development and infrastructure projects. The National Bank of Kuwait (NBK) reported a 12.8 percent rise in net profits as it gained KD 163.4 million ($541 million) in the first half of the year compared with KD 144.8 million ($479.4 million) for the same period in 2014. The NBK attributed the sold growth in profits the betterment of the operating environment in Kuwait and acceleration in the process of tendering, award and execution of the large infrastructure projects.
The Kuwait Finance House (KFH) reported a 14.1 percent rise in net profits in the same period. It has posted net profit of KD 62.3 million ($205.27 million) compared to KD 54.6 million (179.9 million) over in the correspoinding period of last year. Al Ahli Bank of Kuwait (ABK) net profit also jumped to KD 20.44 million ($67.45 million) from KD 19.07 million ($62.93 million) over the same period in 2014, demonstrating a 7.2 percent increase. ABK said that its operating income also saw a 4.6 percent soared from the same period last year with KD 62.64 million ($206.7 million) versus KD 59. 89 million ($197.63 million) in 2014. Additionally, during the first half of 2015, ABK entered into an agreement with Piraeus Bank S.A. Greece to acquire 98.5 percent of their subsidiary Piraeus Bank Egypt (PBE). The Bank has obtained Central Bank of Kuwait approval and is in the process of finalizing the Egyptian regulatory authority approvals.
Once these have been obtained PBE will be a part of ABK and rebranded as ABK Egypt across the entire 39 branch network by the end of 2015. The Burgan Bank posted a 12.3 percent increase in net profits of the first six months to reach KD 37.4 million ($123.23 million) vis-@-vis that of 2014. Al Ahli United Bank’s profits inched up a 0.3 percent to KD 25.5 million ($84.04 million) in the first half of 2015 from KD 24.4 million ($83.69 million) in the corresponding period of 2014. The Commercial Bank of Kuwait (Al- Tijari) announced net profits of KD 16.7 million ($55.07) up by 26 percent for the 1st half of 2015, compared with KD 13.2 million ($43.49 million) last year. The Gulf Bank’s net profits hiked KD 18.7 million ($61.6 million), up 20 percent, from KD 15.6 million ($51.4 million) over the same period in 2014. The Boubayan Bank has announced net profits of KD 16 million ($52.7 million) for H1 2015, up 28 percent, compared with KD 12.6 million ($41.5 million) in 2014. The Kuwait International Bank’s net profits ballooned by 17 percent from KD 10.4 million ($34.26 million) vis-@-vis KD 8.9 million ($29.32 million) a year earlier. The newly-founded Warba Bank’s net profits skyrocketed by 633 percent in the first half to KD 43,000 ($141,685).
