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 $ 1 billion in 2007, and an ROE of 29.9 percent. NBK is amongst the most valuable Arab companies with a market capitalization of $18.5 billion as of end 2007. 
 
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, Dubai, Egypt, Singapore, China, Iraq, Turkey and Saudi Arabia. NBK also has other ambitious plans for expansion in the near future to cover Syria and other regions.

NBK's operating income topped $ 1.6 billion in 2007. The Bank's cost to income ratio stood at 26.7% in 2007. The ratio of non-performing loans to total loans is 1.96%, amongst the lowest worldwide, with provision against such loans equivalent to 166.4% 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 2007, 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 2007, NBK acquired a 98.1% ownership stake in the Alwatany Bank of Egypt, highlighting the significance of this deal for NBK's future in light of the magnitude of the Egyptian Market, the largest in the Arab world, and the deeply rooted and historical ties between Kuwait and Egypt.
Also in 2007, NBK increased its ownership in International Bank of Qatar from a 20% to 30% stake. This year, our network has reached more than 155 branches around the world.
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 42.3 billion (KD 11.5 billion) at the end of 2007, while its shareholders' equity stood at USD 5.5 billion (KD 1.5 billion).