Boubyan Bank to Focus on Kuwaiti Market on Outlook For Revival
Boubyan Bank KSC (BOUBYAN), 58 percent owned by the country’s biggest lender, the National Bank of Kuwait SAK, expects a “rebound” in the domestic market next year and said it expects to focus on growth plans in the country.
“The bank has no plans to expand outside Kuwait in the near future and will focus on the local market which is filled with good opportunities,” Chairman Adel Abdul Wahab al-Majed said in an e-mailed response to questions on Nov. 11. “We expect operating conditions in 2013 to rebound and growth in the credit market to be better than” this year, he said.
Lending is expected to grow between 5 percent and 6 percent next year, and the effectiveness of a reduction in the central bank interest rate is “tied to a range of other positive variables,” al-Majed said. The bank cut the interest rate in October to 2 percent, the lowest since Bloomberg began tracking it 11 years ago, to boost economy growth.
Boubyan Bank said nine-month profit rose by 11 percent to 7.6 million dinars ($26.9 million) from the year-earlier period. The lender’s shares gained 5 percent this year compared with a 0.4 percent decrease for the benchmark Kuwait Exchange Index. The stock was unchanged at 620 fils when it last traded on Nov. 12.
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