National Bank of Kuwait, the Gulf Arab state's largest commercial lender, reported a third-quarter profit rise on Tuesday helped by higher interest income. Net profit rose 9.1 percent to 64.5 million dinars ($213.8 million) for the three months to 30 September.
This was below estimates from two analysts polled by Reuters who had forecast NBK would achieve a profit of 71.0-71.8 million dinars. NBK said interest income rose to 112.3 million dinars from 102.1 million a year earlier driven by strong business volumes growth.
Interest income accounted for 65.7 percent of total revenue, while operating revenue was up 2.1 percent to 170.9 million dinars. At the end of the third quarter, NBK's total assets were 23.78 billion dinars, up 9.4 percent from a year earlier. Current liabilities were 19.92 billion dinars, up from 18.11 billion.
Like other Gulf banks, NBK has sought to bolster its capital in recent months. On 4 October it said it had received central bank approval to issue capital-boosting bonds worth up to 125 million dinars. The bonds will be Basel III-compliant and will enhance the bank's Tier 2, or supplementary, capital.
NBK said in July it wanted to strengthen its business in Egypt, where it has around 30 branches, as the security and political environment stabilises. It also has overseas branches in Saudi Arabia and United Arab Emirates.
Source: Arabian Business