(Updates with reason for profit drop in first paragraph, comments from chairman in third paragraph.)
Feb. 5 (Bloomberg) -- Commercial Bank of Kuwait SAK said full-year profit plunged 98 percent on “weak” government spending.
Net income fell to 810,000 dinars ($2.9 million), or 0.6 fils a share, from 40.45 million dinars, or 31.8 fils, a year ago, the bank said in a statement to the Kuwait bourse today.
“Weak government spending and the retreating performance of the Kuwait Stock Exchange” impacted “the pace of the country’s economy and finance,” Chairman Ali al-Awadhi said in an e-mailed statement today. “A general improvement in the economic environment and working atmosphere would positively influence” the lender.
Commercial Bank of Kuwait’s board decided to take all operational revenue of 101.3 million dinars as provisions against bad loans “considering current regional and international conditions that are marred by a great deal of uncertainty,” according to the statement.
The global credit crisis weakened lending and investment banking in the Middle East, pushing up loan-loss provisions and leading to a drop in the value of investments.
--Editors: Sara Marley, Linda Shen
To contact the reporter on this story: Dahlia Kholaif in Kuwait at firstname.lastname@example.org
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