Kuwaiti banks'' net profits in ''10 hit KD 583 mln - CBK

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KUWAIT, April 11 (KUNA) -- Kuwaiti banks made net profits estimated at KD 583 million in 2010, compared with KD 359 million a year earlier, up 62.5 percent, the Central Bank of Kuwait (CBK) announced Monday.
Addressing the "Development Finance and Financing Development in Kuwait" Conference, Governor of the CBK Sheikh Salem AbdulAziz Al-Sabah emphasized that Kuwait has taken several measures to buttress banking sector and developing its risk-management abilities.
As for the performance of the banking sector in 2010, he disclosed that local banks have managed to overcome the impacts of the global financial crisis and continued making gains.
Sheikh Salem said that this performance came to assert the improvement see n by the banks' departments of risk management, which clearly manifested itself through the semi-annual data provided by the banks to CBK on the internal evolution processes of the ratio of capital adequacy.
He noted that the financial stress tests conducted for the liquidity conditions of local banks have showed that banks are have no problems in honoring short-term obligations, in what reflects a sufficient rate of liquidity under the assumption of a sudden withdrawal of deposits within a 30-day interval.
The governor also pointed out that the improvement in the banking sector was reflected by various indicators by the end of last December, foremost among them are the continuing improvement of the ratio of capital adequacy from 16.7 percent on Dec 31, 2009 to nearly 18.8 percent by last December.
Moreover, the quality of capital in the Kuwaiti banks is good as the ratio of capital adequacy of the first tranche, namely the principal capital with a latent capacity t o absorb losses, have jumped.
Sheikh Salem concluded by saying CBK will maintain its relentless efforts toward consolidating monetary and financial stability in the State of Kuwait, along with boosting its prudent macroeconomic regulatory system.