NBK Reports net profit of USD 221.5 million For the first quarter of 2007
an increase of 13% 

National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest-rated in the Middle East, announced net profits of USD 221.5 million (KD 64 million) during the first three months of 2007 compared to USD 195 million for the same period last year, an increase of 13%. The Bank also reported a return on average assets of 3.2% and a return on average equity of 29.3%. These results mark an outstanding performance by regional and international standards.

Ibrahim Dabdoub, CEO of NBK, commented on the results saying that they "continued to represent solid growth across all of the bank's business lines and marked a strong start for yet another promising year for NBK." The CEO stressed that "a well-diversified income base continues to drive NBK's ability to generate consistent growth in profits. More important from our shareholders' perspective is our focus on driving continued improvement in our core operations as a basis for generating value and superior returns. We are pleased to see our strategic actions continued to yield positive trends."

"During the quarter, we continued to expand our business in a balanced way, while ensuring superior service to customers. As such, our excellent earnings did not come at the expense of asset quality or discipline in managing cost," Dabdoub added. "NBK's prudent credit culture has distinguished us over the years and continues to ensure excellent asset quality. The quality and diversification of our earnings, and superior credit ratings, the highest among all emerging market banks, are proof of our success in managing risk and cost."

The bank's operating environment remained very positive during the first part of 2007, with indicators continuing to support growth in banking services and boosting the bank's business at all levels. Kuwait and the region continued to enjoy solid economic growth, high business confidence, and strong consumer spending and investment, fuelling demand for credit.

"NBK's focus on value and trust in maintaining a strong relationship with our customers has paid off," added Dabdoub, "with our solid franchise allowing us to capitalize on the favorable business environment without eroding our earnings power. To protect and build on our leading position in the region, we are investing heavily in building our capacity to meet future customer needs, as well as serve new customers and markets. Our investments in people and systems have been thoroughly reviewed to ensure a solid platform that will enable NBK to compete effectively and efficiently in more open markets."

"Another integral element of our strategy is regional expansion, where we continued to make progress," stressed Dabdoub. "In March 2007, we were granted a license to operate in the UAE. This complements recent additions to our international business, that have so far proved to be extremely rewarding and promising. We intend to continue to pursue other opportunities to enter new markets that fit our long-term vision. Our international network has long played an important role in differentiating NBK from other regional players, and in supporting our businesses from treasury, trade finance and corporate banking to private banking and wealth management."

NBK stands out in Kuwait and among Arab banks in terms of its regional and international network, which includes branches, subsidiaries and representative offices in New York, London, Paris, Geneva, Saudi Arabia, Bahrain, Qatar, Lebanon, Jordan, Iraq, Singapore, Vietnam and Shanghai. NBK Capital, the Bank's investment banking arm, also has offices in Dubai and Turkey, with other ambitious plans for continued regional expansion.

NBK has consistently earned the highest credit ratings in the Middle East by international agencies including Moody's, Standard & Poor's and Fitch Ratings, 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 29.4 billion (KD 8.5 billion) at the end of March 2007. Shareholders' equity stood at USD 2.97 billion (KD 859 million).