Since its foundation in 1952 as the first national bank and the first joint stock company in the Gulf Region, NBK has been known as 'The Bank You Know And Trust'. It has been an unbroken record of rising profits reaching $876 million in 2006, and an ROE of 38.6 percent. NBK is amongst the most valuable Arab companies with a market capitalization of $14.7 billion as of end 2006. 

NBK is by far the largest and most dominant financial institution in Kuwait. It also enjoys the highest credit rating in the Middle East. Among Arab banks, NBK has the most extensive regional and international network, which includes branches, subsidiaries and representative offices in New York, London, Paris, Geneva, Lebanon, Jordan, Bahrain, Qatar, Singapore, China, Iraq and Saudi Arabia. NBK also has other ambitous plans for expansion in the near future to cover Dubai and other regions. 

NBK's operating income topped one billion US dollars in 2006, risnig by 23% from the previous year. Reported earning do not include unrealized porifts of USD 123 million. The Bank's cost to income ratio imporived to 23.4% from 25.1% in 2005. The ratio of non-performing loans to total loans dropped to 1.4%, amongst the lowest worldwide, with provision against such lonas equivalent to 224% of their value. This confirms the Bank's reputation for having excellent asset quality and a long-standing, prudent credit culture.

 The operating environment was on the whole very positive for banking services. Throughout the region, economic growth was particularly solid in 2006, confidence was high, and consumer spending and investment were strong, fuelling demand for credit. Capital markets were bullish and this created growth opportunities in investment banking and services. NBK's interest margins positively reflected the rise in interest rates, as well as its sound management and advantageous mix of liabilities.

A solid franchise and fundamental strengths allowed NBK to take advantage of the favorable business environment and expand our client base from all segments, thus generating balanced growth across business lines and regions. NBK's success is propelled by a clear and focused vision of providing value to customers and maintaining strong relationships built on trust.

Strategic initiatives aimed at deepening NBK's market leadership and expanding our regional presence also produced positive results last year. NBK is very pleased with the strong results coming from the new markets in Qatar and Jordan alongside our established network in major financial centers. Our international network has long played an important role in supporting NBK's businesses from treasury, trade finance and corporate banking to private banking and wealth management.

In 2004, NBK acquired a 20% ownership stake in the International Bank of Qatar (formerly Grindlays Qatar Bank) together with full management control. Also in 2004, NBK opened a new branch in Amman, Jordan, and a tenth branch in Lebanon. This year, our network has reached more than 151 branches around the world.

Opened a representative office in Shanghai - China, and started operations in Iraq through the newly acquired Credit Bank of Iraq. NBK'S focus is to expand in markets with strong prospects where we can leverage our fundamental strengths.

To position ourselves for continued success in the future with our ambitious expansion strategy, we have embarked on a major transformation program that will provide us with a platform to operate on a larger scale, in a more open and competitive environment, and keep in step with the evolution of banking practices and converging technologies. We are investing heavily to develop our infrastructure and human resources. We also continue to support the national workforce and the share of nationals in our labor force has surpassed 50% this year.

NBK has consistently earned the highest credit ratings in the Middle East by international agencies including Moody's, Standard & Poor's and FitchRatings, in recognition of its healthy performance, fine asset quality and solid capital base. Rating agencies also praise the depth and stability of NBK's management and its clear strategy as fundamental pillars for the Bank's superior ranking.

 NBK's total assets reached USD 27.3 billion (KD 7.9 billion) at the end of 2006, while its shareholders' equity stood at USD 3.1 billion (KD 923 million).