National Bank of Kuwait
|Founded||Kuwait City, Kuwait (1952)|
|Headquarters||Kuwait City, Kuwait|
|Revenue||$2.21 billion USD (2010)|
|Operating income||$1.77 billion USD (2010)|
|Net income||$1.07 billion USD (2010)|
The National Bank of Kuwait
The National Bank of Kuwait (NBK) was incorporated in 1952 as the first local bank and the first shareholding company in Kuwait and the Gulf region.
The History of National Bank of Kuwait
Foundation of National Bank of Kuwait started in 1952 when a prominent Kuwaiti merchant[who?] went to the British Bank of the ME to open a Letter of Guarantee for the amount of 10,000 Indian Rupees, (which is equivalent today to 750 KD). Much to his surprise, his request was rejected, on the condition he provides a guarantor. This well-known merchant was shocked and appalled by the treatment that he had received, and news of this was all over town. This incident gave rise to the question and the idea of having a national bank with a mission to serve the national needs as its priority, help the economic growth of the country, and look after the savings of its clients. In fact, a meeting was held with the late Amir of Kuwait, H.H. Sheikh Abdullah Al-Salem Al-Sabah, who congratulated them on the idea and promised them his complete support. An Amiri decree was issued on May 19, 1952 to open the National Bank of Kuwait, and NBK started operations in a small bank that started operations on November 15, 1952 within a total space of three shops and a handful of employees relying on traditional and manual banking tools to one of the largest and most profitable banks in the region.
National Bank of Kuwait nowadays
NBK reported net profits of USD 819 million (KD 225.6 million) for the first nine months of 2011. Today, NBK, which is the largest financial institution in Kuwait with effective market dominance in the commercial banking market, boasts the largest presence in Kuwait with 67 branches, which together with its growing international representation adds up to 105 branches worldwide. NBK also stands out in terms of its local and international network, which includes branches, subsidiaries and representative offices in Geneva, London, Paris, New York, Singapore, and China, alongside its regional presence in Lebanon, Jordan, Iraq, Egypt, Bahrain, Iraq, Qatar, Saudi Arabia, UAE, and Turkey.
Bank’s Principal Subsidiaries:
•NBK (International) plc (United Kingdom) is a wholly owned subsidiary of the Bank with two offices in London and one is Paris which provides retail, private and corporate banking, treasury and trade finance related services. •NBK (Lebanon) S.A.L. (Lebanon) is 85.5% owned by the Bank and provides retail, commercial and private banking and real estate related services through a network of ten branches. •NBK Banque Privee (Suisse) S.A. (Switzerland) is a wholly owned subsidiary of the Bank headquartered in Geneva. In addition to traditional banking services, it provides portfolio management services, family trust, advisory and custody services to individuals with high net worth. •Credit Bank of Iraq S.A. (Iraq) is 75% owned by the Bank and provides retail and commercial banking services through a network of fourteen branches in Iraq. •NBK Investment Management Limited (United Kingdom) is a wholly owned subsidiary of the Bank and provides asset management services to Kuwaiti government agencies and high net worth customers. •National Investors Group Holdings Limited (Cayman Islands) is a wholly owned subsidiary of the Bank and was established as an investment company. •NBK Capital Company (Kuwait) is 99.9% owned by the Bank and was established in July 2005 as a subsidiary of NBK. NBK Capital focuses on four principal lines of business: Alternative Investments, Asset Management, Brokerage & Research and Investment Banking. With offices in Kuwait, Dubai, Turkey, and Cairo, NBK Capital’s team of salesmen offer products and services to clients and investors. •Al Watany Bank of Egypt S.A.E. is 98.5% owned of the Bank and provides retail, private and corporate banking, treasury and trade finance related services. •Watani Financial Brokerage Company is 86.7% owned of the Bank and provides brokerage services.
Investment in Associates
•Bank Boubyan is 47.3% owned by the Bank. It was established in 2004. Boubyan Bank is built on the ideal of establishing socio-economic equity by influencing the business environment and society in which it operates through the sincere application and ethical practice of Islamic banking and value-creation for its customers, partners and shareholders. •International Bank of Qatar (IBQ), the affiliate of NBK in Qatar, is owned 30% owned by the Bank. It is one of the oldest financial institutions in Qatar and celebrated its 50th anniversary in 2006. It has a growing network of many branches and service centers, and ATMs in strategic locations throughout Qatar. It offers a range of tailor-made corporate, private and retail banking products and services. •Turkish Bank is 30% owned by the Bank.
NBK International Advisory Board
NBK was the first bank in the Middle East to establish an International Advisory Board, setting a precedent for banks and financial institutions in the region. The Bank’s International Advisory Board, which was established in 2007, brings together an impressive array of distinguished world figures in the fields of politics, economics and business and the Bankers’ Roundtable has evolved into a significant subgroup in its own right, comprising the banking and financial specialist contingent of the parent Advisory Board.
NBK Chairmen 1952 – to date
1952–1955 Khalid Al Zaid Al Khalid 1956–1958 Ahmed Saud Al Khalid 1959–1964 Abdulaziz Hamad Al Sager 1965–1979 Yaqoub Youssef Al Hamad 1980–1992 Mohammed Abdulmohsin Al-Kharafi 1993 – to date Mohammed Abdulrahman Al Bahar
NBK Official website: http://www.nbk.com/
NBK annual report and financial statements 2010 NBK Corporate Social Responsibility Report 2010