NBK approves 30pc cash dividends to investors
Kuwait, March 9, 2013
National Bank of Kuwait (NBK) said it plans to distribute cash dividends equivalent to 30 per cent of the nominal value of the share (30 fils per share) and bonus shares by 5 per cent (5 shares for every 100 shares) to shareholders following solid results.
Announcing this at the bank's AGM, chairman Mohammad Abdul Rahman Al Bahar said 2012 was a remarkable year on the strategic level as NBK continued to strengthen its positioning in the local, regional and international markets.
NBK Group managed to deliver a strong set of results for the year not withstanding the ongoing challenges, he stated.
The bank had earlier reported a full year net profit of KD305.1 million ($1.08 billion) for 2012. At year end, NBK’s total assets reached KD16.4 billion) up from KD13.6 billion the year before.
The total group shareholders’ equity hit KD2.3 billion, thus registering a six per cent year-on-year growth.
Al Bahar attributed the NBK's strong performance to the bank’s financial resilience, clear strategy, conservative culture, and high professional standards.
“2012 was a challenging year for banks in Kuwait as the local operating environment remained stagnant. Additionally, the geopolitical tensions led to further pressures on the business sentiment both locally and in the region,” he stated.
Al Bahar expressed a general improvement in the outlook for the local operating environment in 2013 as the government adopts a more dynamic fiscal policy, most importantly accelerating spending on mega projects.
Group CEO Ibrahim Dabdoub said that 2012 was a remarkable year on the strategic level for NBK.
"During the year, NBK continued to deliver on its income diversification efforts through a major strategic move increasing its stake in Boubyan Bank to 58.4 per cent transforming it into a subsidiary of NBK Group. This move is key to strengthening our presence in Kuwait’s growing Islamic banking market and opens new growth prospects for the Group," he added.
Additionally, NBK continued to strengthen its positioning in its regional and international markets with more focus on GCC operations. NBK’s international banking profits recorded a year-on-year growth of 22.7 per cent in 2012.
According to Dabdoub, the Kuwaiti bank has been able to considerably increase its share of the total banking sector profits in Kuwait throughout the global financial crisis. NBK’s share of the total banking sector profits increased from 32 per cent in 2007 to 53 per cent in 2012.
He pointed out that NBK continues to hold the highest credit ratings among banks in the Middle East, with international rating agencies confirming its leading franchise, strong financial position, robust earnings capabilities and above peers asset quality.
“We have over the years maintained the highest asset quality indicators by regional and international standards, despite the ongoing economic challenges,” stated Dabdoub.
NBK is currently rated “Aa3” by Moody’s, “AA-” by Fitch Ratings and carries an “A+” rating from Standard and Poor’s. All NBK ratings have a stable outlook.
Added to this, NBK was also named among Global Finance’s list of the 50 safest banks in the world for the seventh consecutive time. Human Resources and CSR, said the top official.-TradeArabia News Service