BKME posts KD 14.3m profit before provisions

29/03/2010 00:00 AST

Bank of Kuwait and the Middle East (BKME) Board of Directors Chairman, Hamad Abdulmohsen Al-Marzouq, announced at the bank's General Assembly meeting on Sunday that the total operating revenues of the bank reached KD 85 million, the total assets reached KD 2,261 million, while total shareholders' equity reached KD 237 million as of the year ending Dec 31, 2009. He also announced that BKME will complete its conversion into Islamic Banking by the end of the week.

"The efforts expended by the bank's management and its resolution to take advantage of all available opportunities of the economic growth, product development and customer service around the clock, accounted for the main impetus to realize net profit of KD 14.3 million in the year 2009, notwithstanding the specific, general and additional precautionary provisions taken by the Bank amounting to KD 47 million, which reflect the conservative approach for allocation of provisions," said Al-Marzouq.

He added that the bank capital adequacy standard calculated in accordance with Basel II recommendations reached 16.8%, thereby reflecting eminent and salient strength of the bank capital structure and its future capability for expansion of its asset base.

In light of these distinguished results, the Board of Directors recommended to distribute bonus shares by 10% (one share per each 10 shares) for the year in order to maintain the strong position of the Bank capital base. However, the Board of Directors has decided to decline the bonuses.

Al-Marzouq said that that BKME maintained its strong financial position during the financial crises and was able to increase the volume of its business and corporate finance to more than KD 173 million by attracting high net worth corporate clients and establishments and diversifying the sources of income.

BKME enforced the bank diligent strategy through deliberate control and continued credit analysis implementing flexible risk management in order to safeguard assets and their values against the impacts of the crises.

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Arab Times