KUWAIT: National Bank of Kuwait reported a 19 percent rise in second-quarter net profit on Tuesday, missing analysts' estimates, but the Gulf Arab state's largest lender was upbeat on the outlook for the local economy.
Net profit was 47.2 million Kuwaiti dinars or $165.7 million in the three months to the end of June, compared to 39.8 million dinars a year ago. Six analysts in a Reuters poll had predicted 79 million dinars of net profit on average.
Shares in NBK, which had been briefly halted on the stock exchange before the results, were trading flat at 0820 GMT.
The economic outlook has been improving domestically, chief executive Ibrahim Dabdoub said in a statement.
A 30 billion dinar economic development plan, announced in late 2010, has been delayed by disagreements between the cabinet and parliament, as well as by bureaucracy.
But a more stable political environment since late last year has fuelled hopes that the OPEC state will push ahead with huge infrastructure projects in the plan, to the benefit of Kuwaiti companies.
"We have started witnessing some acceleration in the tendering, award and execution of some of the large projects," Dabdoub said.
"During the second quarter NBK led several large financing transactions in the Kuwaiti market relating to public and private sector projects, an indication of the overall improvement in the economic outlook and business sentiment."
Parliamentary elections are set for Saturday after the Constitutional Court found fault with the process leading up to the last elections in December and ordered a new vote.
Most prominent opposition politicians are boycotting the poll, suggesting those elected may be supportive of government development plans.
At the end of the second quarter, NBK's total assets were 17.9 billion dinars, up 25 percent from the same time a year ago. Current liabilities were 15.0 billion dinars compared to 11.5 billion a year earlier. (Reuters)
