Commercial Bank of Kuwait K P S C : Financial Results for the period ended 30/9/2023

The Commercial Bank of Kuwait Group

Interim Condensed Consolidated Financial Information

30 September 2023 (Unaudited)

Deloitte & Touche

Al-Wazzan & Co.

Ahmed Al-Jaber Street, Sharq

Dar Al-Awadi Complex, Floors 7 & 9

P.O. Box 20174, Safat 13062

Kuwait

Tel : + 965 22408844, 22438060

Fax: + 965 22408855, 22452080

www.deloitte.com

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF COMMERCIAL BANK OF KUWAIT K.P.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Commercial Bank of Kuwait K.P.S.C. ("the Bank") and its subsidiary (together called "the Group") as of 30 September 2023 and the related interim condensed consolidated statements of income and comprehensive income for the three-month and nine-month periods then ended and the related interim condensed consolidated statements of changes in equity and cash flows for the nine-month period then ended. Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the basis of presentation set out in Note 2. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared in all material respects in accordance with the basis of presentation set out in Note 2.

Report on other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Bank. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016 and its executive regulations, as amended, or of the Memorandum of Incorporation and Articles of Association of the Bank as amended, during the nine-month period ended 30 September 2023 that might have had a material effect on the business of the Bank or on its financial position.

We further report that, during the course of our review and to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No. 32 of 1968, as amended, concerning currency, the Central Bank of Kuwait and the Organization of Banking Business, and its related regulations during the nine-month period ended 30 September 2023 that might have had a material effect on the business of the Bank or on its financial position.

Ali B. Al Wazzan	Dr Shuaib A. Shuaib
License No. 246A	License No. 33A
Deloitte & Touche	RSM Albazie & Co.
Al-Wazzan & Co.
Kuwait
24 October 2023

The Commercial Bank of Kuwait Group

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

Period ended 30 September 2023 (Unaudited)

		Three months ended		Nine months ended
		30 Sept		30 September
		2023	2022		2023	2022
	Note	KD 000's		KD 000's		KD 000's		KD 000's
Interest income		55,590	36,200	160,641	88,393
Interest expense		(25,787)	(13,665)	(76,063)	(26,575)
NET INTEREST INCOME		29,803	22,535	84,578	61,818
Fees and commissions		10,805	10,667	32,383	30,852
Net gain from dealing in foreign currencies		1,776	2,505	6,055	6,303
Net (loss) gain from investment securities		(4)	-	60	54
Dividend income		720	926	2,880	2,743
Other operating income		73	123	424	243
OPERATING INCOME		43,173	36,756	126,380	102,013
Staff expenses		(7,334)	(6,709)	(20,951)	(20,985)
General and administrative expenses		(5,605)	(4,297)	(17,606)	(12,265)
Depreciation and amortisation		(927)	(727)	(1,386)	(956)
OPERATING EXPENSES		(13,866)	(11,733)	(39,943)	(34,206)
OPERATING PROFIT BEFORE PROVISIONS		29,307	25,023	86,437	67,807
Net reversal (charge) of impairment and other provisions	9	2,040	(27,649)	17,396	(24,501)
PROFIT (LOSS) BEFORE TAXATION AND CONTRIBUTIONS	31,347	(2,626)	103,833	43,306
Taxation and contributions		(1,393)	160	(4,677)	(1,802)
NET PROFIT (LOSS) FOR THE PERIOD		29,954	(2,466)	99,156	41,504
Attributable to:
	29,948			99,139
Shareholders of the Bank		(2,473)	41,477
Non-controlling interests		6	7	17	27
		29,954	(2,466)	99,156	41,504
Basic and diluted earnings per share attributable to
	16.3			53.1
shareholders of the Bank (fils)	10	(1.2)	20.9

The attached notes 1 to 15 form an integral part of this interim condensed consolidated financial information.

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