Mubasher: Total provisions of the Commercial Bank of Kuwait (CBK) rose by 30.7% for the first nine months of 2017, negatively affecting its net profits, according to a recent report by Al-Shall Economic Consultants.

The bank’s after-tax deductions’ net profit dropped 47.3% or KWD 13 million to KWD 14.5 million in the nine-month period of 2017, versus KWD 27.5 million in the prior-year period.

Operational profits prior to deducting provisions inched up 0.7% or KWD 500,000 to KWD 75 million from KWD 74.5 million, the report added.

Meanwhile, total operational incomes increased by 6.1% or KWD 6.3 million to KWD 110.9 million in the nine-month period from KWD 104.5 million in the corresponding period of 2016.

The report highlighted that this resulted from the rise in the item of net interest income by KWD 6.1 million to KWD 69.2 million, representing 62.4% of total operational incomes, compared to KWD 63 million, which represents 60.3% of total operational incomes.

Moreover, item of fees and commissions added KWD 2 million, reaching KWD 29.7 million, compared to KWD 27.7 million, while item of gain profit from dealing in foreign currencies fell by KWD 2.8 million, recording KWD 2.4 million, compared to KWD 5.2 million last year.

Total operational expenses levelled up by less value than the rise in total operational incomes, as it rose by KWD 5.9 million to KWD 35.9 million in the nine-month period of 2017 from KWD 30 million the year-ago period.

Total provisions rose by 30.7% or KWD 14.1 million to KWD 60 million from KD 45.9 million, therefore net profit margin declined to 14.7% from 30.8%.

Total bank's assets rose by 5.9% to KWD 4.370 billion, compared to KWD 4.125 billion, and increased by 8% when compared with total assets in the same period of 2016, as it scored KWD 4.047 billion.

Item of loans and advances portfolio dropped by 2.3% or KWD 51.3 million, reaching KWD 2.199 billion (50.3% of total assets), versus KWD 2.250 billion (54.6% of total assets) at the end of December 2016.

Percentage of total loans and advances to total deposits amounted to 62.2%, compared to 68.1%, according to the report.

The report mentioned that figures indicate that the bank’s liabilities, without calculating total equity, increased by 6.3% or KD 223.2 million to reach KWD 3.745 billion, compared to KWD 3.521 billion in the end of 2016.

Percentage of total liabilities to total assets stood at 85.7% in the nine-month period of 2017, compared to 85.8% in the same period of 2016.

It is worth mentioning that the CBK’s profits had previously recorded a 22.1% drop for the third quarter of 2017 to reach KWD 12.45 million, versus KWD 15.98 million in Q3-16.