(MENAFN - Arab Times) Kuwait city april 3 (agencies): commercial bank of kuwait the gulf state's fifth largest lender by assets said a majority of shareholders had approved a plan to convert the bank into a full-fledged islamic lender state news agency kuna reported
the bank's chairman ali mousa al mousa was quoted as saying on wednesday that 85 percent of shareholders had approved the move adding that the measure would still require further approvals
'though the majority of the shareholders voted for the move which was on the top of the agenda of the ordinary meeting the decision does not take immediate effect - it is just a first step in a legal process involving several studies and approvals' he noted
'the general assembly also approved the issuance of subordinate bonds with a total value of kd 120 million in keeping with the bank's plans for expansion and the provisions of basel iii' al-mousa disclosed
on the financial results of 2013 al-mousa affirmed the bank's commitment to the principles of corporate governance in all its policies and activities which are subject to constant revision
'the shareholders' equity in the bank grew by 1.8 percent to kd 562 million compared with the previous year which ranked the bank as the third largest in kuwait
'the total value of assets grew by 7.1 percent y/y to kd 3.9 billion thus ranking as the fifth largest in the country's banking sector' al-mousa went on to say.
'the volume of credits offered to clients last year topped kd 2.3 billion reflecting an increase of kd 189.3 million or 8.9 percent y/y' he said noting that there was a boom in the bank's overseas credits which grew to kd 71 million
the operating and net profits hit kd 102 million and kd 23.5 million respectively in 2013 with the capital adequacy ratio standing at 18.38 percent and the ratio of non-performing loans (npls) to the gross loans hitting 1.35 percent
the aggregate provisions were kd 128.2 million resulting in provision coverage for npls at 367 percent compared with 169 percent in 2012 he added
the general assembly also approved the recommendation of the board of directors to distribute cash dividends of 7 fils per share and bonus shares amounting to 11 percent for each 100 shares.