Commercial Bank of Kuwait (CBK) reported a 91 percent drop in its second-quarter net profit, missing forecasts after booking provisions against its investment and loan portfolio.
Net profit in the three months to June 30 was KD198,000 ($724,478), compared to KD2.3m a year earlier, the lender said in a statement on the bourse website.
"The bank has continued its prudent policy towards building up a strong provision base, the bank has total provisions for credit facilities of KD180.3m," CBK's Chairman Ali al-Awadhi said in another statement.
Net income in the first half of the year was KD1.5m compared with KD890,000 a year ago.Operating profit before provisions for the first half of the year came in at KD52.3m, the lender said.
Last month, Goldman Sachs cut its price target on CBK to KD0.84 from KD0.93, citing weak loan growth and high cost of risk.
CBK's shares closed 5.8 percent higher at KD0.92 on Wednesday. The results were released after the market closed.
From / Arabian Business News