National Bank of Kuwait slumped the most in more than two years after the country’s biggest lender reported a 40 percent drop in second-quarter profit, missing analysts’ estimates.
The shares lost 5.7 percent, the biggest drop since November 2009, to 1,000 fils at the close in Kuwait. The benchmark index fell 0.4 percent.
Net income declined to 39.8 million dinars ($141 million) from 65.9 million dinars a year earlier. The mean estimate of four analysts was for a profit of 81.5 million dinars, according to data compiled by Bloomberg. The bank set aside $96.4 million in “judgmental provisions in face of a further potential deterioration in our operating environment,” Chief Executive Officer Ibrahim Dabdoub said yesterday.
The earnings offered a “highly negative surprise,” Naveed Ahmed, senior financial analyst at Kuwait-based Global Investment House, wrote in a note to clients today. The performance “is likely to lead us to revise our projections for 2012 downwards,” he said.
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